OTTAWA (CP) - The Cold War is long over, but foreign spies are still trying to infiltrate key federal departments in a continuing quest for secrets, says Canada's intelligence agency.
In its latest annual report, the Canadian Security Intelligence Service warns scientific and technological developments in Canada's natural resource sector are also a prime target. CSIS used the report, tabled in Parliament on Thursday, to remind Canadians that the threat of espionage remains worrisome even though terrorism has become the main concern of the modern era.
Increasing global competition is prompting foreign spies to shift their focus to illicit acquisition of economic and technological information from the political and military secrets of the past, the report says.
While CSIS singles out no country by name in the report, the service says both "traditionally hostile and ostensibly friendly" governments have engaged in spying against Canada.
Guansheng Han, a security official who defected from China, told The Canadian Press last year that Beijing cultivates informants in the Canadian Chinese community and gathers intelligence on key economic sectors, including the biopharmaceutical industry.
China has denied spying on other countries.
According to CSIS, Canada has been targeted by nations seeking advantages in fields such as aerospace, biotechnology, chemicals, communications, information technology, mining, metallurgy, nuclear energy, oil, gas and environmental technologies.
In some cases, "highly skilled professional operatives" use specialized knowledge and cutting-edge tools to gather intelligence, the report says.
In other instances, countries enlist or coerce citizens who are visiting Canada - namely students, scientists, members of delegations, employees of state-owned corporations and business people.
Thwarting such threats involves close co-operation between the intelligence and industrial worlds, says University of Toronto historian Wesley Wark.
He said that relationship is "probably a bit underdeveloped" in Canada because both CSIS and the private sector tread cautiously on these issues - the intelligence service for security reasons, and companies to avoid alarming shareholders.
The CSIS report also advises that Canadian business people travelling abroad are vulnerable.
"A foreign government can operate more easily within its own borders, adapting hotel rooms, restaurants, offices and telecommunications systems for espionage purposes."
CSIS says that despite strong warnings from Ottawa, some countries continue to use their intelligence services to manipulate and exploit expatriate communities in Canada.
The report, which covers the year ending March 31, 2005, lags behind recent events, including Canada's growing role in the fight against extremists in Afghanistan and the arrest of 17 terrorism suspects in Ontario.
Giovanni Cotroneo, a CSIS spokesman, said Thursday the service had no additional comment.
In the report, the service reiterates concerns that Canadians who travel to Iraq to fight in the insurgency may return home "with new skills and new motivations."
It adds terrorists in Canada have "conducted preliminary reconnaissance" against potential Canadian targets, but offers no details.
CSIS also warns that international terrorist groups are increasingly sophisticated.
It says a growing number use modern technology to send secret messages, transfer money and conduct cyber-attacks against private-sector and government targets.
In some cases, says CSIS, international criminal activities such as money laundering or weapons purchases involve members of terrorist groups, or serve their interests.
