WEBVTT - The Sixth Bureau, Episode 2: The Spy’s Diary 0:00:02.480 --> 0:00:07.000 Bloomberg Audio Studios, Podcasts, radio News. 0:00:07.920 --> 0:00:10.600 A few quick notes before we get started. It's customary 0:00:10.600 --> 0:00:13.200 in Chinese for family names to come before given names, 0:00:13.560 --> 0:00:15.920 so with Shoe yan June, Shoe is his family name 0:00:16.160 --> 0:00:19.400 and Yan June is his given name. But almost everyone 0:00:19.440 --> 0:00:21.799 we spoke to and almost every document we reviewed for 0:00:21.800 --> 0:00:25.040 this story referred to him as Shoe, So for simplicity, 0:00:25.280 --> 0:00:27.040 you'll hear us do the same for him and for 0:00:27.080 --> 0:00:30.800 a few others. Also, the series includes material originally written 0:00:30.840 --> 0:00:34.280 and spoken in Chinese. At various points you'll hear actors 0:00:34.320 --> 0:00:37.960 voicing the translated versions in English. This episode also contains 0:00:37.960 --> 0:00:41.760 strong language. Finally, this is the second episode. If you 0:00:41.760 --> 0:00:44.360 miss the first, we recommend going back and listening from 0:00:44.360 --> 0:00:45.600 the beginning. Thanks. 0:00:48.400 --> 0:00:50.559 When Jordan and I first started going through the documents 0:00:50.560 --> 0:00:52.960 of this case, we saw a bunch of the usual 0:00:53.000 --> 0:00:57.640 things we'd expect, trial testimony, emails, that kind of stuff, 0:00:58.160 --> 0:01:02.000 but one thing really stood out. Remember, Shoe Yan June 0:01:02.160 --> 0:01:04.959 is a spy working for one of the most secretive 0:01:04.959 --> 0:01:09.280 agencies in the world, China's Ministry of State Security, so 0:01:09.319 --> 0:01:12.280 it was surprising to come across something much more intimate, 0:01:13.080 --> 0:01:16.480 something that made us feel like we were inside his head. 0:01:18.200 --> 0:01:23.280 June eleventh morning, eyeglasses prescription much safe. So the whole 0:01:23.280 --> 0:01:27.080 family worshiped the Buddha at Jamie Temple until twenty ninth evening. 0:01:27.520 --> 0:01:30.800 The Fami man and his wife held banquet. April fifth morning, 0:01:30.959 --> 0:01:33.039 when we was the second one close family to sweep 0:01:33.040 --> 0:01:34.279 great grandfather's tomb. 0:01:36.120 --> 0:01:38.440 Shoe Yen June had an online calendar where he put 0:01:38.480 --> 0:01:39.160 his appointments in. 0:01:40.040 --> 0:01:43.000 This is Bradley Hall, the lead FBI agent on the 0:01:43.000 --> 0:01:44.080 shoe Yan June case. 0:01:45.040 --> 0:01:46.520 At the end of the day, he would take little 0:01:46.560 --> 0:01:49.560 notes to himself about what happened that day. Sometimes it 0:01:49.640 --> 0:01:52.400 was related to source meetings. Sometimes it was related to 0:01:52.440 --> 0:01:55.440 work conflicts. Sometimes it was about his wife or his child, 0:01:56.080 --> 0:01:57.559 or the apartment that he wanted to buy. 0:01:58.080 --> 0:02:01.880 July fifteenth, afternoon, Chase the house signed the contract. May 0:02:01.960 --> 0:02:05.680 twenty fifth morning, Family day at the shell Shell's kindergarten. 0:02:05.760 --> 0:02:09.200 Hike to the Jing Mountain. June twenty fifth, afternoon, meet 0:02:09.240 --> 0:02:10.320 out music festival. 0:02:10.480 --> 0:02:13.560 She goes to a music festival. Shoe eats lobster. She 0:02:13.720 --> 0:02:17.239 takes his grandfather car shopper. Shee wins money at cards. 0:02:17.080 --> 0:02:19.480 Lay cards one fifteen hundred. 0:02:19.200 --> 0:02:22.200 Shee loses money at cards, lost the seven hundred. Shee 0:02:22.200 --> 0:02:23.480 loses more money. 0:02:23.200 --> 0:02:26.720 At cards nineteen fifteen, last seven hundred, last twenty one hundred, 0:02:26.760 --> 0:02:28.600 last one fifty, last six hundred. 0:02:29.320 --> 0:02:31.320 She seems to have been pretty bad at cards. 0:02:32.919 --> 0:02:35.480 So it was every little piece of his life that 0:02:35.560 --> 0:02:38.960 he very diligently put down in textual form for us. 0:02:39.160 --> 0:02:39.880 It was a diary. 0:02:40.120 --> 0:02:40.720 It was a diary. 0:02:41.520 --> 0:02:47.000 November sixteenth afternoon, watched Interstellar with John Nae. October thirty, 0:02:47.000 --> 0:02:52.080 first evening, karaoke November twenty eighth, after dinner for massage. 0:02:52.120 --> 0:02:56.359 February seventeenth evening, dined with John Howell. Three rounds of 0:02:56.440 --> 0:02:57.639 drinks puked. 0:02:58.280 --> 0:03:00.000 There were highs and lows, and we saw all of them. 0:03:00.600 --> 0:03:06.520 March to third. Grandfather passed away at ten forty pm. 0:03:06.639 --> 0:03:09.440 He's a complicated fella, would be the simplest way to 0:03:09.440 --> 0:03:09.760 put it. 0:03:10.520 --> 0:03:11.359 He has a misuse. 0:03:11.760 --> 0:03:15.079 He likes to gamble, he likes to womanize. 0:03:15.480 --> 0:03:18.840 She was married, but wasn't the most faithful husband. 0:03:19.080 --> 0:03:21.280 I don't remember how many girlfriends we identified, but there 0:03:21.280 --> 0:03:21.920 were quite a few. 0:03:22.440 --> 0:03:25.760 One of them starts to dominate his diary around this time. 0:03:26.360 --> 0:03:29.320 He refers to her with an Emoji A Peach. 0:03:29.639 --> 0:03:34.399 December thirty's evening Peach the beginning Wanda Huts. On June 0:03:34.440 --> 0:03:38.400 twenty ninth evening Peach twenty second afternoon picked up the 0:03:38.440 --> 0:03:40.760 Peach need the shelter and to give the date of 0:03:40.800 --> 0:03:44.560 August the seventh, when in karaoke afterwards, Peach was drunk 0:03:44.560 --> 0:03:49.120 and took her home in septem twenty noon Peach Nanjin Hotel. 0:03:50.440 --> 0:03:54.000 The details of she's personal life are pretty juicy, but 0:03:54.080 --> 0:03:58.800 what's even more incredible is that this spy meticulously documents 0:03:58.920 --> 0:03:59.920 his work life too. 0:04:00.400 --> 0:04:04.440 March fourteen, sixth bureau meets. January twenty fourth, held banquet 0:04:04.560 --> 0:04:08.400 with comrades of Aerospace team. November twenty fifth, worked overtime 0:04:08.560 --> 0:04:12.119 until two thirty eight, and Many thirteenth Pawnee comedian meeting. 0:04:12.160 --> 0:04:16.400 You're eleventh Matt G. Chowtree, March thirty first, Aviation briefing 0:04:16.520 --> 0:04:20.599 August to twenty fourth. My official promotion came. Waited for 0:04:20.760 --> 0:04:25.120 too long. It finally came. Took a load off my mind. 0:04:30.200 --> 0:04:33.520 It's normal enough to keep a diary, but shees recording 0:04:33.560 --> 0:04:37.799 things that are supposed to be secret, deniable things about 0:04:37.800 --> 0:04:40.839 his job and how he does it. It's an actual 0:04:40.960 --> 0:04:43.920 spies diary, and we got our hands on. 0:04:43.880 --> 0:04:53.480 It from Bloomberg News and iHeart Podcast. This is the 0:04:53.520 --> 0:04:54.280 sixth Bureau. 0:04:54.800 --> 0:04:57.799 I'm Jordan Robertson and I'm Drake Bennett. 0:05:04.560 --> 0:05:08.400 As by agencies go. China's Ministry of State Security is unique. 0:05:08.960 --> 0:05:12.039 First of all, it's massive. Estimates we've heard put it 0:05:12.080 --> 0:05:15.440 at hundreds of thousands of employees. It's way bigger than 0:05:15.440 --> 0:05:19.160 the FBI and the CIA combined, and it has an 0:05:19.160 --> 0:05:24.159 additional job. But those agencies don't industrial espionage stealing stuff 0:05:24.160 --> 0:05:25.760 from companies instead of governments. 0:05:26.440 --> 0:05:32.160 It wasn't just military information, it wasn't just US political information. 0:05:32.240 --> 0:05:34.960 They wanted trade secrets, they wanted everything. 0:05:35.920 --> 0:05:39.000 This is Matthew Mackenzie, a federal prosecutor on the shoecase. 0:05:39.120 --> 0:05:43.200 Everyone does espionage, but not every country uses their intelligence 0:05:43.200 --> 0:05:48.720 apparatus to steal commercial trade secrets. That is beyond the norms. 0:05:49.640 --> 0:05:53.680 Technically, this is correct. The CIA and FBI don't steal 0:05:53.720 --> 0:05:57.240 trade secrets, but the US government does have a history 0:05:57.240 --> 0:06:01.360 of it. In the late seventeen hundred, right after independence, 0:06:01.839 --> 0:06:04.520 the US offered bounties for anyone who could smuggle out 0:06:04.560 --> 0:06:08.200 loom designs from British cotton mills. Those mills had been 0:06:08.240 --> 0:06:11.640 built thanks to plans stolen from Italian silk spinners, an 0:06:11.640 --> 0:06:16.440 industry that Italians essentially stole from China centuries before. Fast 0:06:16.480 --> 0:06:19.880 forward to the nineteen nineties. China's economy is still recovering 0:06:19.920 --> 0:06:23.240 from the devastation of the Cultural Revolution, and the ruling 0:06:23.279 --> 0:06:26.960 Communist Party decides reasonably enough that they need to do 0:06:27.040 --> 0:06:30.599 whatever they can to catch up. Within a decade, China 0:06:30.640 --> 0:06:34.320 becomes the world's factory, churning out toys and textiles and 0:06:34.400 --> 0:06:37.960 kitchen appliances. They soon move on to more advanced technologies 0:06:38.000 --> 0:06:42.400 like smartphones and electric vehicles. Then, in twenty fifteen, the 0:06:42.480 --> 0:06:46.279 CCP codifies this ambition in a strategic plan called Made 0:06:46.360 --> 0:06:49.760 in China twenty twenty five, which is exactly what it 0:06:49.800 --> 0:06:53.479 sounds like, China making its own critical technologies and no 0:06:53.520 --> 0:06:59.200 longer relying on Western products. That policy and commitment largely worked. Today, 0:06:59.400 --> 0:07:01.279 it's safe to set they've caught up in many of 0:07:01.279 --> 0:07:03.000 these technologies. 0:07:02.920 --> 0:07:06.440 But one key area where they haven't is aerospace, building 0:07:06.440 --> 0:07:09.160 planes and helicopters and jet engines that other countries want 0:07:09.200 --> 0:07:12.760 to buy. That's where the MSS comes in. In particular 0:07:12.800 --> 0:07:16.560 one of its divisions, the sixth Bureau. Chu Yan June 0:07:16.600 --> 0:07:19.680 worked there on a team tasks with stealing the secrets 0:07:19.760 --> 0:07:21.840 of the world's top aviation companies. 0:07:22.640 --> 0:07:26.240 Everything in China is a top down approach, right. It 0:07:26.360 --> 0:07:29.680 is an edict from the government that we are going 0:07:29.760 --> 0:07:33.360 to make our own regional airliners, so we can stop 0:07:33.400 --> 0:07:36.880 buying from Boeing and stop buying from goe We're going 0:07:36.920 --> 0:07:38.640 to make our own domestic product. 0:07:39.120 --> 0:07:41.640 And Shu yan June's job is to work with engineers 0:07:41.680 --> 0:07:44.960 from China's state owned aerospace companies and get them exactly what. 0:07:44.960 --> 0:07:47.840 They need because they're the ones who are actually trying 0:07:47.840 --> 0:07:48.920 to build the plane. 0:07:50.040 --> 0:07:52.760 Which brings us to a recording that Shoe secretly made 0:07:52.880 --> 0:07:53.920 in twenty seventeen. 0:07:54.320 --> 0:07:56.160 My favorite part of the entire case. 0:07:56.520 --> 0:07:59.400 He's recording a talk by a man named Arthur Gao. 0:08:00.800 --> 0:08:02.160 This is the engine power. 0:08:02.520 --> 0:08:05.480 Therefore you have to do the power interrupt tests and 0:08:05.720 --> 0:08:08.600 EMI lightning. 0:08:09.160 --> 0:08:12.120 Arthur Goo was an engineer at the American company Honeywell. 0:08:12.800 --> 0:08:16.640 He worked on advanced technologies for both civilian and military aircraft. 0:08:18.560 --> 0:08:22.840 For control systems of helicopters, there are two very important issues. 0:08:23.320 --> 0:08:26.640 One is a rotodynamics, you have to take it into account. 0:08:28.720 --> 0:08:31.560 Arthur is originally from Taiwan, and he came to the 0:08:31.640 --> 0:08:34.960 US in the late seventies to get his PhD. He 0:08:35.000 --> 0:08:38.440 eventually wound up at Honeywell in Phoenix. He's been invited 0:08:38.480 --> 0:08:40.800 to China to give this talk in what was described 0:08:40.800 --> 0:08:44.520 as an academic exchange with the Nanjing University of Aeronautics 0:08:44.559 --> 0:08:48.040 and Astronautics. But when he got there, he wasn't brought 0:08:48.040 --> 0:08:50.800 to a university to give his talk. He was brought 0:08:51.040 --> 0:08:54.880 to a hotel room inside only a few people were there. 0:08:55.520 --> 0:08:58.839 Arthur thinks he's talking to all of these academics and 0:08:59.000 --> 0:09:02.000 students in It turns out that there are no academics, 0:09:02.040 --> 0:09:03.040 there are no students. 0:09:03.440 --> 0:09:06.720 They are MSS officers posing as people who work in 0:09:06.760 --> 0:09:11.440 the industry. There are also Chinese engineers, employees of China's 0:09:11.440 --> 0:09:15.240 state owned aerospace conglomerate AVIK, there to learn what they 0:09:15.240 --> 0:09:18.080 can from Arthur about his work at Honeywell. 0:09:18.400 --> 0:09:23.320 In particular the combat aircraft systems that Honeywell builds for 0:09:23.320 --> 0:09:24.440 the United States military. 0:09:26.080 --> 0:09:28.160 These are all military standards. 0:09:28.360 --> 0:09:32.720 They have very detailed regulation. Arthur talks to the group 0:09:32.800 --> 0:09:34.840 for about three hours. 0:09:35.040 --> 0:09:38.520 And At the conclusion of his presentation. 0:09:38.559 --> 0:09:40.640 FBI agent Bradley Hall, Shoe. 0:09:40.440 --> 0:09:43.080 Engineer, thanks him. They go through all the niceties and 0:09:43.120 --> 0:09:45.560 then they ask Arthur to step out of the room. 0:09:46.120 --> 0:09:49.080 Tuj Gal, maybe you can't head back first, Thank you 0:09:49.120 --> 0:09:49.560 so much. 0:09:52.520 --> 0:09:54.840 Arthur walks out of the room, leaving Shoe and the 0:09:54.880 --> 0:09:59.480 engineers alone. But the tape keeps rolling, and there's this 0:09:59.559 --> 0:10:05.720 amazing kind of easter egg. You know that narrative convention 0:10:06.000 --> 0:10:09.240 in movies and TV, where near the beginning of a story, 0:10:09.400 --> 0:10:12.400 some new character shows up and someone else has to 0:10:12.440 --> 0:10:16.160 explain to them, and by extension you the audience how 0:10:16.200 --> 0:10:19.880 everything works and who everyone is. Think Peggy Olsen's first 0:10:19.920 --> 0:10:21.360 day on the job in Madmoth. 0:10:21.440 --> 0:10:22.880 Now, this is the executive floor. 0:10:22.920 --> 0:10:24.520 It should be organized, but it's not. 0:10:25.200 --> 0:10:27.880 So you'll find account executives and creative. 0:10:27.520 --> 0:10:28.960 Executives all mixed together. 0:10:29.559 --> 0:10:30.800 Please don't miss the difference. 0:10:31.120 --> 0:10:33.240 Great, Hopefully you follow my lead. 0:10:33.400 --> 0:10:36.000 What we hear next on the recording is exactly that 0:10:36.600 --> 0:10:40.000 for Shoe's world. You hear someone take a sip of 0:10:40.000 --> 0:10:43.400 a drink and put their mug down on the table. 0:10:45.760 --> 0:10:48.560 You hear the door close behind Arthur, and then she 0:10:48.800 --> 0:10:50.959 turns back to the group of Chinese engineers. 0:10:52.120 --> 0:10:58.120 She and June starts describing how the MSS recruits Western experts, 0:10:58.760 --> 0:11:02.560 how they operate them, and how they found Arthur so 0:11:02.600 --> 0:11:05.559 that he could teach them about what the Americans were 0:11:05.559 --> 0:11:06.760 doing with their helicopters. 0:11:07.679 --> 0:11:09.800 She wants to know how the engineers think Arthur will 0:11:09.800 --> 0:11:11.840 be most useful to them, what kind of source he 0:11:11.920 --> 0:11:14.280 may be, So he lays out the different types of 0:11:14.280 --> 0:11:17.640 sources he brings in like a taxonomy of spies. Let's 0:11:17.640 --> 0:11:19.520 say he walks them through it. 0:11:20.840 --> 0:11:23.320 There are a few aspects to all collaborations. 0:11:23.760 --> 0:11:27.679 He actually has what he calls four levels of expert participation. 0:11:28.280 --> 0:11:30.840 The first level are high ranking experts. 0:11:31.000 --> 0:11:35.480 This expert is ranked highly and is reliable. The expert 0:11:35.520 --> 0:11:38.720 can directly participate in the design of the project. 0:11:39.120 --> 0:11:42.680 These are folks who have direct involvement in design both 0:11:42.679 --> 0:11:46.400 in the West and in Chinese systems. They have access 0:11:46.440 --> 0:11:48.959 to class out information in China and their long term 0:11:49.000 --> 0:11:51.560 sources as in These are the people that they keep 0:11:51.559 --> 0:11:53.719 on the books for fifteen twenty years and they call 0:11:53.800 --> 0:11:54.760 them in when they need them. 0:11:55.840 --> 0:11:58.360 This is our highest level of collaboration. 0:12:01.640 --> 0:12:03.520 A lot of the stories you hear about China. Stealing 0:12:03.520 --> 0:12:07.960 trade secrets involve hacking, breaking into computer systems, but spying's 0:12:08.040 --> 0:12:14.080 ultimately about something way more ordinary, cultivating relationships or using people. 0:12:14.640 --> 0:12:19.160 They invite people over under some kind of innocent sounding pretext. 0:12:19.640 --> 0:12:20.640 This is James Olsen. 0:12:20.800 --> 0:12:23.520 We'd like to invite you to China to give a 0:12:23.760 --> 0:12:27.720 guest lecture or to meet with our experts, just for 0:12:28.080 --> 0:12:31.400 a get acquainted a session, and we will compensate to 0:12:31.400 --> 0:12:33.559 you for that. There will be a stipend and we 0:12:33.600 --> 0:12:37.360 will cover all your expenses. And most people fall for it. 0:12:38.200 --> 0:12:40.240 James knows this because he was a. 0:12:40.200 --> 0:12:44.240 Spy in the Central Intelligence Agency for thirty one. 0:12:44.200 --> 0:12:48.480 Years, eventually the agency's chief of counterintelligence. So James has 0:12:48.480 --> 0:12:50.319 a pretty good idea of what a spy like shoey 0:12:50.400 --> 0:12:52.720 On June does, and he says, there's kind of a 0:12:52.880 --> 0:12:54.679 universal playbook on how to do it. 0:12:54.679 --> 0:13:00.439 It sounds cynical, but in the intelligence profession, we know 0:13:01.040 --> 0:13:06.400 that every human being has needs, and our job in 0:13:06.400 --> 0:13:11.520 intelligence is to identify what your need is. And our 0:13:11.559 --> 0:13:16.880 hope is that need is so compelling, so urgent, so 0:13:16.920 --> 0:13:20.720 important for you, that if we satisfy that need, you 0:13:20.800 --> 0:13:24.880 will assist us. You will violate your own country's laws. 0:13:25.080 --> 0:13:29.400 You will give us technology. It sounds terrible, but we 0:13:29.480 --> 0:13:34.000 are in the business of exploiting your weakness, your needs, 0:13:34.360 --> 0:13:37.800 your vulnerabilities, and we're good at it. 0:13:41.880 --> 0:13:46.120 Sometimes exploiting vulnerabilities as a matter of carots, but sometimes 0:13:46.360 --> 0:13:47.000 it sticks. 0:13:47.600 --> 0:13:51.079 People fear the MSS. Generally, they will put that in 0:13:51.160 --> 0:13:55.000 the frame of your family back in China is dependent 0:13:55.040 --> 0:13:58.400 on the government, and we would not want to do 0:13:58.440 --> 0:14:00.560 anything to make their life more difficult. 0:14:01.160 --> 0:14:06.120 I've seen cases where family members are arrested. I've seen 0:14:06.240 --> 0:14:09.560 cases where family members are sent by the MSS to 0:14:09.679 --> 0:14:12.440 deliver messages to people in the United States see either 0:14:12.480 --> 0:14:16.000 get in line or come back to China to face 0:14:16.040 --> 0:14:19.360 whatever consequences there are for them there. 0:14:20.160 --> 0:14:22.720 We don't know exactly why Arthur Gou did what he did. 0:14:23.320 --> 0:14:25.960 We tried multiple times to contact him for this series, 0:14:26.480 --> 0:14:29.400 but we never heard back. We also reached out to 0:14:29.440 --> 0:14:33.480 his former employer, Honeywell. They never responded. But we do 0:14:33.600 --> 0:14:36.240 know that when the MSS came calling, it was hard 0:14:36.240 --> 0:14:39.120 for Arthur to say no, and they came calling more 0:14:39.160 --> 0:14:42.320 than once. That talk in the hotel room wasn't a 0:14:42.320 --> 0:14:47.200 one off. The MSS first targeted Arthur two decades before. 0:14:49.280 --> 0:14:51.800 The first invitation came to Arthur in nineteen ninety seven 0:14:52.200 --> 0:14:56.280 from someone at the Nanjing University of Aeronautics and Astronautics 0:14:56.600 --> 0:15:00.240 or NUAA. You're going to hear NUAA a lot in 0:15:00.320 --> 0:15:04.520 this series because its staff worked really closely with the MSS. 0:15:05.320 --> 0:15:10.000 They allowed themselves to be used as cover to invite 0:15:10.280 --> 0:15:13.920 and to host foreign visitors so that they can assess them, 0:15:14.160 --> 0:15:16.840 wine them and dying them, develop them when they're making 0:15:16.880 --> 0:15:19.600 their trips to China. So it's a very very valuable 0:15:19.880 --> 0:15:21.880 relationship in the mssies. 0:15:23.680 --> 0:15:26.840 So the invitations from NUAA kept coming, and Arthur gou 0:15:26.920 --> 0:15:29.960 kept accepting them. He'd come give a talk, there'd be 0:15:29.960 --> 0:15:33.720 fancy meals, luxury cruises down the Youngs River, all expenses 0:15:33.760 --> 0:15:37.800 paid trips to visit tourist attractions. Then after he got 0:15:37.800 --> 0:15:39.960 home from a trip in two thousand and three, his 0:15:40.080 --> 0:15:44.440 contact followed up asking for very sensitive information. Arthur seemed 0:15:44.440 --> 0:15:48.160 to get suspicious and he cut things off. That worked 0:15:48.360 --> 0:15:51.800 for a while. The MSS, though, could be patient, like 0:15:52.360 --> 0:15:57.720 unbelievably patient. Eleven years later, his contact, who was actually 0:15:57.760 --> 0:16:01.440 an MSS officer named joh Wrong reaches back out like 0:16:01.480 --> 0:16:02.680 an old friend checking in. 0:16:03.480 --> 0:16:06.200 Come fries it has been eleven years. 0:16:06.840 --> 0:16:09.680 He mentions things about Arthur's personal life that only a 0:16:09.720 --> 0:16:10.320 friend should know. 0:16:10.600 --> 0:16:13.720 I heard that you had a son recently. Congratulations. 0:16:14.160 --> 0:16:17.000 He wishes Arthur's family a happy New Year, stay healthy, 0:16:17.760 --> 0:16:20.840 and invites him to return to China. If I were Arthur, 0:16:20.920 --> 0:16:24.360 I'd be creeped out, so he replies, but he doesn't 0:16:24.360 --> 0:16:25.360 commit to another trip. 0:16:26.360 --> 0:16:30.080 Two years later, in twenty sixteen, John nudges him again. 0:16:30.880 --> 0:16:34.520 This time Arthur caves. He tells Joe that he does 0:16:34.560 --> 0:16:37.400 have a trip to China coming up, a personal trip 0:16:37.480 --> 0:16:40.400 to see some friends. Jaw offers to pick him up 0:16:40.400 --> 0:16:44.160 at the Beijing airport. In the car, he introduces a 0:16:44.160 --> 0:16:50.480 supposed university colleague, it's actually shoe Yen June. During that visit, 0:16:50.800 --> 0:16:53.000 John Hue come up to Arthur's hotel room late at 0:16:53.080 --> 0:16:57.480 night and hand him three thousand dollars. Arthur's confused. This 0:16:57.520 --> 0:17:01.200 has been a strictly personal trip, no presentation, no meetings. 0:17:01.640 --> 0:17:05.040 He didn't even bring his work computer. They basically tell 0:17:05.119 --> 0:17:08.840 him keep it use it for the next trip. On 0:17:08.880 --> 0:17:11.840 the next trip, though, in twenty seventeen, when he gives 0:17:11.840 --> 0:17:15.399 that talk in the hotel, He's handed another envelope of money, 0:17:15.880 --> 0:17:22.160 this time it's five grand. At the time he gave 0:17:22.200 --> 0:17:26.320 that talk, Arthur gow was thinking about retirement. In a way, 0:17:26.440 --> 0:17:29.240 this only made him more useful. It meant he could 0:17:29.280 --> 0:17:32.320 come over for even longer periods of time and they 0:17:32.320 --> 0:17:34.760 could possibly even hire him. 0:17:35.320 --> 0:17:37.480 He said, he may retire in two years or so. 0:17:38.040 --> 0:17:41.800 He also wants to write he has the ability, he 0:17:41.840 --> 0:17:45.159 is competent, he has a desire to achieve something. We 0:17:45.200 --> 0:17:46.720 can also design it that way. 0:17:48.160 --> 0:17:51.000 Arthur Goud. He was the longest running assets in the case. 0:17:51.240 --> 0:17:53.880 I mean he what twenty years. What does he represent 0:17:53.920 --> 0:17:57.200 to you in terms of, you know, this organization's ability 0:17:57.280 --> 0:17:59.680 to run people for a long time. 0:18:00.119 --> 0:18:04.479 Both the long term nature of the operation and then 0:18:04.520 --> 0:18:07.720 the significant amount of damage that can happen over that timeframe. 0:18:07.960 --> 0:18:12.000 Bradley Hall with Arthur's example, when he did choose to disclose, 0:18:12.600 --> 0:18:16.000 he disclosed things that could hurt us. The helicopter that 0:18:16.000 --> 0:18:18.600 the Marine Corps is going to fly, the next level helicopter, 0:18:19.040 --> 0:18:21.439 there's no reason that the Chinese government needs to know 0:18:21.480 --> 0:18:24.159 the specifications of that. There's no reason an employee of 0:18:24.160 --> 0:18:27.080 any American companies should be prepared to pass that sort 0:18:27.080 --> 0:18:27.840 of information over. 0:18:31.359 --> 0:18:34.240 In twenty twenty one, Arthur Goo was indicted and pled 0:18:34.240 --> 0:18:38.040 guilty to exporting controlled information without a license. He was 0:18:38.080 --> 0:18:44.000 sentenced to three years probation in order to pay a fine. Okay, 0:18:44.520 --> 0:18:47.440 back to Shoo's taxonomy of the types of sources he recruits. 0:18:47.960 --> 0:18:50.200 Level one is kind of like having someone who works 0:18:50.240 --> 0:18:53.320 for you directly over a period of time. Level two 0:18:53.960 --> 0:18:56.480 that's more like having a consultant who's on call for 0:18:56.560 --> 0:18:58.119 specific one off jobs. 0:18:58.480 --> 0:19:02.040 These are folks who examine specific models, they solve problems. 0:19:02.280 --> 0:19:04.280 They usually come to China for a one month period, 0:19:04.359 --> 0:19:08.000 but fairly when frequently because they are working in companies 0:19:08.000 --> 0:19:08.520 in the West. 0:19:09.000 --> 0:19:12.640 If we have specific questions, we can't ask them. For instance, 0:19:13.359 --> 0:19:16.600 if we come across any problems in the project, we 0:19:16.680 --> 0:19:19.400 can present them with the questions directly in a very 0:19:19.400 --> 0:19:20.360 specific effession. 0:19:21.320 --> 0:19:23.760 Level three that's even less of a commitment. 0:19:24.480 --> 0:19:28.920 The third level he called topical experts. These are individuals 0:19:28.960 --> 0:19:33.000 who answer questions in person only or they provide reports 0:19:33.440 --> 0:19:35.639 that they only come into China for very very short 0:19:35.720 --> 0:19:39.640 durations of time because they're experts in their field back 0:19:39.680 --> 0:19:42.480 in the West, and it would be unusual or raise 0:19:42.560 --> 0:19:44.800 concerns if these people stay there for more than a 0:19:44.840 --> 0:19:47.400 week or a weekend or something like that. Shee indicated 0:19:47.440 --> 0:19:48.879 that this was the most common type of source, that 0:19:48.920 --> 0:19:50.160 he is an individual ran. 0:19:51.200 --> 0:19:53.679 This is something we've done quite a lot in the past. 0:19:54.560 --> 0:19:57.760 Arthur Goo was probably a level three. So is a 0:19:57.760 --> 0:20:04.200 man named Lee Young about meeting with Lee in his diary. 0:20:04.520 --> 0:20:09.600 April twentieth afternoon, pick up Lee from train station, check 0:20:09.680 --> 0:20:11.040 in Too Jinging hotel. 0:20:12.400 --> 0:20:15.320 We don't know that much about Lee Jong, but we 0:20:15.359 --> 0:20:17.800 do know that he was an expert on fighter aircraft 0:20:18.040 --> 0:20:21.000 and how to make them like the Lockheed Martin F 0:20:21.080 --> 0:20:24.080 thirty five, which is one of the world's most advanced 0:20:24.119 --> 0:20:27.600 fighter jets. We also know that when Shoe invited Lee 0:20:27.680 --> 0:20:30.800 to come give a talk in Nanjing, the MSS officer 0:20:30.920 --> 0:20:34.480 used in alias. When Lee arrives in April twenty fourteen, 0:20:35.160 --> 0:20:37.920 Hue and Jah Rong host a banquet in his honor. 0:20:38.560 --> 0:20:41.280 There's a level of rapport building. There's a level of 0:20:41.280 --> 0:20:44.280 whining and dining that's often involved with this, but it's 0:20:44.320 --> 0:20:44.800 not just. 0:20:44.760 --> 0:20:48.960 About rapport building. During the banquet, Shoe's colleagues sneak into 0:20:49.040 --> 0:20:51.639 Lee's hotel room and try to hack into his computer, 0:20:52.119 --> 0:20:54.480 but they run into problems and they can't get everything 0:20:54.520 --> 0:20:57.320 they want, so they invite Lee back a few months 0:20:57.359 --> 0:20:59.760 later for another visit. They want him to give a 0:20:59.760 --> 0:21:04.000 talk about electric takeoff and landing systems, and they want 0:21:04.000 --> 0:21:05.960 to take another crack at hacking into his laptop. 0:21:07.480 --> 0:21:11.760 December seventh, d Jones coming to Nanjing entertaining. 0:21:12.200 --> 0:21:14.800 Shoe brings lead to the hotel. Lee drops his stuff 0:21:14.800 --> 0:21:16.760 in his room and then heads off to dinner with 0:21:16.800 --> 0:21:19.520 Shoe's boss, Joe Wrong, who's waiting for him in a 0:21:19.560 --> 0:21:20.680 private dining room. 0:21:21.000 --> 0:21:23.240 I'm in the private room and the dishes have been order. 0:21:24.560 --> 0:21:27.359 Then Shoe and another colleague go to Lee's room to 0:21:27.440 --> 0:21:30.760 try and hack into his computer again. At six forty 0:21:30.840 --> 0:21:32.640 nine pm, Shoe texts his. 0:21:32.600 --> 0:21:36.680 Boss laptop but you're seeing sleepmoat one partable hot drive 0:21:36.720 --> 0:21:38.119 and then two small drives. 0:21:38.600 --> 0:21:41.200 The hack is taking longer than expected, and his boss 0:21:41.240 --> 0:21:41.960 gets impatient. 0:21:42.040 --> 0:21:42.720 It's too slow. 0:21:42.800 --> 0:21:44.960 Spit it up fifteen minutes later. 0:21:45.400 --> 0:21:47.920 If it doesn't work, copy it with your own computer. 0:21:48.520 --> 0:21:52.080 Now it's eight thirty nine pm. The operation has been 0:21:52.119 --> 0:21:55.199 going for almost two hours. Shoe updates his boss. 0:21:55.680 --> 0:21:58.560 The copying will more or less be done in fifteen minutes. 0:21:59.040 --> 0:22:02.479 Restoring the scene and documents who will take roughly twenty minutes. 0:22:02.840 --> 0:22:06.480 Hurry up, hurry up, because remember, Shoe's boss Jah Wrong 0:22:06.760 --> 0:22:09.400 is having dinner with Lee, and even a fake honorary 0:22:09.440 --> 0:22:11.000 banquet can only go on for so long. 0:22:11.920 --> 0:22:16.240 Finally, the cabbing is completed, restoring is in progress. 0:22:16.640 --> 0:22:19.720 After two hours and twenty two minutes, Shoe's. 0:22:19.400 --> 0:22:22.199 Done restored, exiting. 0:22:22.800 --> 0:22:24.800 You can let him toddle back up to his room. 0:22:24.840 --> 0:22:25.359 At this point. 0:22:26.320 --> 0:22:29.720 The next day, Lee gives his talk totally clueless. He's 0:22:29.720 --> 0:22:34.480 been hacked. We were never able to reach Lee Gum. 0:22:35.160 --> 0:22:36.919 As far as we know, he was never charged with 0:22:36.960 --> 0:22:37.640 any crimes. 0:22:39.800 --> 0:22:43.399 The fourth and final level of Shoes experts are called spotters. 0:22:43.920 --> 0:22:45.480