After Court rejection, Trump says Nation’s Security at stake

The James R. Browning U.S. Court of Appeals Building, home of the 9th U.S. Circuit Court of Appeals

By Dan Levine and Mica Rosenberg

(Reuters) – U.S. President Donald Trump suffered a legal blow on Thursday when a federal appeals court refused to reinstate a temporary travel ban he had ordered on people from seven Muslim-majority countries.

A three-judge panel of the 9th U.S. Circuit Court of Appeals unanimously ruled that the Trump administration failed to offer any evidence that national security concerns justified immediately restoring the ban, which he launched two weeks ago.

Shortly after the court issued its 29-page ruling, Trump tweeted: “SEE YOU IN COURT, THE SECURITY OF OUR NATION IS AT STAKE!” He told reporters his administration ultimately would win the case and dismissed the ruling as “political.”

The 9th Circuit ruling, upholding last Friday’s decision by U.S. District Judge James Robart, does not resolve the lawsuit. It relates only to whether to lift an emergency halt to Trump’s order put in place by a lower court.

The judges said more briefing would be needed to decide the actual fate of Trump’s order.

The Justice Department, which spoke for the administration at oral argument on Tuesday, said it was reviewing the decision and considering its options.

The states of Washington and Minnesota challenged Trump’s order, which had sparked protests and chaos at U.S. and overseas airports on the weekend after it was issued. The two states argued that Trump’s ban violated constitutional protections against religious discrimination.

Asked about Trump’s tweet, Washington state Attorney General  Bob Ferguson said: “We have seen him in court twice, and we’re two for two.”

While the court said it could not decide whether the order discriminated against a particular religion until the case had been “fully briefed,” it added that the states had presented evidence of “numerous statements” by the president “about his intent to implement a ‘Muslim ban.’”

The court said the government had failed to show that any person from the seven countries had perpetrated a terrorist attack in the United States.

The administration argued that the courts do not have access to the same classified information about threats to the country that the president does. The judges countered that “courts regularly receive classified information under seal.”

Trump’s Jan. 27 executive order barred entry for citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen for 90 days and imposed a 120-day halt on all refugees, except refugees from Syria who are barred indefinitely.

The three judges said the states had shown that even temporary reinstatement of the ban would cause harm.

FINAL OUTCOME ‘NOT CERTAIN’

Curbing entry to the United States as a national security measure was a central premise of Trump’s 2016 presidential campaign, originally proposed as a temporary ban on all Muslims. He has voiced frustration at the legal challenge to his order.

U.S. presidents have in the past claimed sweeping powers to fight terrorism, but individuals, states and civil rights groups challenging the ban said his administration had offered no evidence it answered a threat.

Two of the three 9th Circuit judges were appointees of former Democratic Presidents Jimmy Carter and Barack Obama, and one was appointed by former President George W. Bush, a Republican like Trump.

The government could ask the 9th Circuit to have a larger panel of judges review the decision “en banc,” or appeal directly to the U.S. Supreme Court, which will likely determine the case’s final outcome.

Senior White House adviser Kellyanne Conway told Fox News: “It’s an interim ruling and we’re fully confident that now that we will get our day in court and have an opportunity to argue this on the merits we will prevail.”

Asked if the administration would go to the Supreme Court, she said: “I can’t comment on that. … He will be conferring with the lawyers and make that decision.”

If the Trump administration appeals to the Supreme Court, it would need five of the eight justices to vote in favor of a stay blocking the district court injunction. That is likely to be a tall order as the court is evenly divided 4-4 between liberals and conservatives, meaning the administration would need to win over at least one of the liberal justices.

The Council on American-Islamic Relations, the nation’s largest Muslim civil rights and advocacy organization, said in a statement: “This victory should not lead to complacency. This and other Trump administration orders and policies still pose a threat to communities of color, religious minorities, women, and others.”

Democrats, the minority party in Congress, celebrated.

House Democratic leader Nancy Pelosi said in an email statement: “This Administration’s recklessness has already done significant harm to families, and undermined our fight against terror. For the sake of our values and the security of America, Democrats will continue to press for President Trump’s dangerous and unconstitutional ban to be withdrawn.”

But Tom Fitton from the conservative group Judicial Watch said on Twitter: “The Ninth Circuit ruling is a dangerous example of judicial overreach.”

(Reporting by Dan Levine in San Francisco and Noeleen Walder and Mica Rosenberg in New York; Writing by Lisa Lambert and Howard Goller; Editing by Peter Cooney)

Trump administration tightens Iran sanctions, Tehran hits back

ballistic missile tested in Iran

By Yeganeh Torbati

WASHINGTON (Reuters) – The Trump administration on Friday imposed sanctions on 25 individuals and entities, ratcheting up pressure on Iran in what it said were just “initial steps” and said it would no longer turn a “blind eye” to Iran’s hostile actions.

“The Trump Administration will no longer tolerate Iran’s provocations that threaten our interests,” National Security Advisor Michael Flynn said.

“The days of turning a blind eye to Iran’s hostile and belligerent actions toward the United States and the world community are over,” Flynn said in a White House statement.

A senior administration official said the latest sanctions were the initial steps in response to Iran’s “provocative behavior”, suggesting more could follow if Tehran does not curb its ballistic missile program and continues support in regional proxy conflicts. The administration was “undertaking a larger strategic review” of how it responds to Iran.

Those affected cannot access the U.S. financial system or deal with U.S. companies and are subject to secondary sanctions, meaning foreign companies and individuals are prohibited from dealing with them or risk being blacklisted by the United States.

The White House said that while the sanctions, the first actions against Iran by the U.S. government since President Donald Trump took office, were a reaction to recent events, they had been under consideration before.

They added that a landmark 2015 deal to curb Iran’s nuclear program was not in the best interest of the United States.

Iran denounced the sanctions as illegal and said it would impose legal restrictions on American individuals and entities helping “regional terrorist groups”, state TV quoted a Foreign Ministry statement as saying.

Ahead of the announcement, Iranian Foreign Minister Mohammad Javad Zarif tweeted: “We will never initiate war, but we can only rely on our own means of defense”.

The new designations stuck to areas that remain under sanctions even with the 2015 nuclear deal sealed between Iran and world powers in place, such as the Islamic Revolutionary Guard Corps, an elite military body that is powerful in Iranian politics and the economy, and Iran’s ballistic missile program. Zarif led Iran’s delegation at the nuclear negotiations in 2015.

Among those affected by the sanctions were what it said was a Lebanon-based network run by the Revolutionary Guards.

The sanctions’ impact will be more symbolic than practical, especially as they do not affect the lifting of broader U.S. and international sanctions that took place under the nuclear deal.

Also, few of the Iranian entities being targeted are likely to have U.S. assets that can be frozen, and U.S. companies, with few exceptions, are barred from doing business with Iran.

Meanwhile, the U.S. moved a Navy destroyer, the USS Cole, close to the Bab al-Mandab Strait off the coast of Yemen to protect waterways from Houthi militia aligned with Iran.

DESIGNATIONS

German Foreign Minister Sigmar Gabriel on Friday expressed understanding over the sanctions, saying Iran’s missile test last Sunday was a clear violation of U.N. Security Council resolutions.

However, Gabriel warned against conflating Sunday’s test with the nuclear deal. The White House said the sanctions made clear the nuclear deal was not in Washington’s best interest.

The U.S. Treasury, which listed the individuals and entities affected on its website, said the sanctions were “fully consistent” with U.S. commitments under the nuclear deal.

Some of the entities involved are based in the United Arab Emirates, Lebanon and China.

Among those affected were companies, individuals and brokers the U.S. Treasury said support a trade network run by Iranian businessman Abdollah Asgharzadeh.

Treasury said he supported Shahid Hemmat Industrial Group, which the United States has said is a subsidiary of an Iranian entity that runs Iran’s ballistic missile program.

Hasan Dehghan Ebrahimi, a Beirut-based official with the Revolutionary Guard’s Qods Force, which runs its operations abroad, was put under sanctions for acting on behalf of the Qods Force, Treasury said.

Three Lebanese companies involved in waste collection, pharmaceuticals, and construction were also listed under the sanctions for being owned or controlled by Muhammad Abd-al-Amir Farhat, one of Ebrahimi’s employees.

Treasury said he has facilitated millions of dollars in cash transfers to Lebanese militant group Hezbollah. Two of his employees and a company he manages were also sanctioned. Treasury said Ebrahimi and his employees used a Lebanon-based network to transfer funds, launder money, and conduct business.

(This version of the story has been refiled to add mention of Flynn to advisory line: Adds Iranian reaction, comment from National Security Advisor Flynn)

(Additional reporting by Parisa Hafezi in Ankara and Roberta Rampton in Washington; Writing by Yara Bayoumy and Lesley Wroughton; Editing by James Dalgleish)

Jihadists mock Trump travel ban, vow more attacks

FILE PHOTO: An Islamic State flag is seen in this picture

By Omar Fahmy and Ali Abdelaty

CAIRO (Reuters) – Supporters of Islamic State mocked U.S. President Donald Trump’s decision to deny entry to citizens of seven Muslim- majority countries, saying it would fail to stop attacks in the United States and help win new militant recruits instead.

“Your decision will do nothing. Attacks will come at you from inside America, from Americans born in America with American parents and grandparents,” one Islamic State supporter posted on Telegram, an encrypted messaging app.

In a move he said would help protect the United States from terrorists, Trump signed an order on Friday suspending the entry of people from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen for at least 90 days. Admission of all refugees was halted for four months, and for Syrians indefinitely.

The sweeping travel curbs took effect immediately, wreaking havoc for would-be travellers with passports from the seven countries and prompting an international outcry.

Islamic State, which has been fighting military assaults on several fronts in its heartlands of northern Syria and Iraq, has made no formal comment on Trump’s ban. But some sympathisers took to social media to pour scorn on immigration restrictions they said would serve Islamic State’s cause.

“Trump bans Muslims from entering America and kills them in Yemen, Iraq and Syria, then threatens them … the wretch does not know he presents an invaluable service to Islamic State,” a supporter calling himself Salem al-Mosuly wrote on Twitter.

An Islamist channel on the messaging app Telegram called “Scholars of Haq”, monitored by U.S. monitoring service SITE, asked whether Trump’s policies meant he was currently the best “caller to Islam” – someone who attracts new believers.

Of the first 48 users to respond, 34 answered that he was, according to SITE. SITE quoted one respondent, Abu Magrebi, as saying: “What Trump has done has clearly revealed the truth, and harsh reality behind the American government’s hatred towards Muslims.”

“What is Trump doing to his country? He just become president and already people (are) protesting against his policy, and worldwide countries criticising him. Trump will bring American down God willing,” Abu Magrebi wrote in another post monitored by SITE.

By Monday morning, the Scholars of Haq channel had been taken down, along with several other channels on which Islamist militants had posted responses on Sunday.

Other Islamic State supporters mocked an order issued by Trump on Sunday requiring his joint chiefs of staff give him a plan, in the next 30 days, to defeat the militant group.

“The Crusader Trump has made himself an unthinking Pharaoh. The despicable Crusader forgets the reckless utterances of Bush Junior and the mule Obama before him. They did not succeed and by the grace of God we will rub his nose in the mud as we did his predecessors,” wrote user Turjman Al Asawirti on Telegram.

(Additional reporting by Sami Aboudi in Dubai and Eric Knecht in Cairo; Writing by Lin Noueihed; Editing by Peter Graff)

Trump expected to launch measures to curb illegal immigration

boy watching U.S. workers

By Julia Edwards Ainsley

WASHINGTON (Reuters) – U.S. President Donald Trump is expected to begin signing executive orders aimed at curbing illegal immigration on Wednesday, beginning with a directive to build a wall along the U.S. border with Mexico and another to boost personnel needed to crack down on illegal immigrants, congressional aides with knowledge of the plan told Reuters.

In the coming days, Trump is expected to limit the number of refugees admitted to the United States to 50,000 a year, down from 100,000, and to impose a temporary ban on most refugees.

Trump, who took office last Friday, will begin signing the orders at the Department of Homeland Security on Wednesday. On Twitter on Tuesday night, Trump reiterated his promise to build the border wall, which was a cornerstone of his presidential campaign and which he has promised to make Mexico pay for.

The border enforcement order includes plans to hire 5,000 more U.S. Customs and Border Protection agents used to apprehend migrants at the border and to triple the number of U.S. Immigration and Customs Enforcement Agents used to arrest and deport migrants living in the United States illegally.

The Customs and Border Protection agency has already struggled to meet its hiring mandate, with a little more than 19,000 agents on the payroll, out of a congressionally mandated 21,000.

Immigration enforcement away from the border is also expected to be strengthened by seeking an end to “sanctuary cities” where local law enforcement officials refuse to cooperate with federal immigration authorities.

Trump will call for an end to this practice and may instruct the federal government to stop providing certain funds to cities that refuse to comply.

Later in the week, Trump is expected to suspend the issuing of visas to people from countries where it is deemed that adequate screening cannot occur. Immigration experts expect those countries to include Syria, Sudan, Somalia, Iraq, Iran, Libya and Yemen.

A review will be conducted by the Trump administration to determine what screening must occur before travel for citizens from such countries can resume.

(Reporting by Julia Edwards Ainsley; Writing by Susan Heavey; Editing by Franklin Paul and Frances Kerry)

U.S. reshaping budget to account for Russian military threat

Military officials gathered in Montana Air Base

By Andrea Shalal

SIMI VALLEY, Calif. (Reuters) – Russia’s increasing military activities around the world have unsettled top U.S. military officials, who say they are reshaping their budget plans to better address what they now consider to be the most pressing threat to U.S. security.

“Russia is the No. 1 threat to the United States. We have a number of threats that we’re dealing with, but Russia could be, because of the nuclear aspect, an existential threat to the United States,” Air Force Secretary Deborah James told Reuters in an interview at the annual Reagan National Defense Forum.

James, Chief of Naval Operations Admiral John Richardson and Pentagon chief arms buyer Frank Kendall, all voiced growing concern about Russia’s increasingly aggressive behavior in interviews late on Saturday.

Their comments come as the Pentagon finalizes a classified security assessment for President-elect Donald Trump, who has promised to both pump up U.S. defense spending and build closer ties to Russian President Vladimir Putin.

European diplomats fear Moscow could use the time before Trump’s inauguration to launch more offensives in Ukraine and Syria, betting that President Barack Obama will be loathe to response forcefully so soon before he hands off power on Jan. 20.

Kendall said U.S. policy had been centered on threats in the Asia-Pacific region and Middle East, but was now focused more on Russia. “Their behavior has caused us … to rethink the balance of capabilities that we’re going to need,” he said.

None of the officials gave details about how the concerns would affect the fiscal 2018 budget request, but defense officials have pointed to the need to focus on areas such as cyber security, space, nuclear capabilities and missile defense, where Russia has developed new capabilities in recent years.

Pentagon officials have nearly completed work on a fiscal 2018 budget request, but it is likely to be reworked substantially once Trump takes office. Officials expect that budget to be submitted in April at the earliest, and possibly later. Typically, budgets are submitted in early February.

Marine Corps General Joseph Dunford, chairman of the Joint Chiefs, told the conference that Russia’s goal was to counter NATO, undermine its credibility and limit the ability of the U.S. military to project power around the world.

“They are operating with a frequency and in places that we haven’t seen for decades,” he said, adding that the buildup should be viewed in the context of its actions in Ukraine, Crimea and Syria, where they have already stepped up air attacks on eastern Aleppo.

Richardson said the Navy was seeing increased Russian naval activities around the globe, including its unprecedented deployment of a carrier strike group to the Mediterranean, the firing of missiles from ships in the Caspian Sea, increased submarine activities in the north Atlantic, and a growing naval presence in the Pacific.

He said there were continuing incidents involving Russian aircraft buzzing U.S. vessels, with some coming as close as 30 feet, and other cases where ships were behaving “erratically.”

“It’s all for public consumption,” Richardson said, noting that Russian ships often filmed such encounters and edited them to make it appear as if U.S. ships were at fault.

Russia and the United States have an agreement to limit and discuss incidents at sea, but the accord appeared to be having little impact on curbing such incidents, he said.

Dialogue between U.S. and Russian navy officers has ceased since Russia’s annexation of the Crimea region of Ukraine in 2014, in contrast to the days of the Cold War, when U.S. and Russian officials were in more regular contact, he said.

“More communication with Russia would be a valuable thing,” Richardson said, noting that he had regular contact with his counterpart in China, but not with those in Russia or Iran.

James echoed his concerns, citing what she called “very worrying” incidents of “very dangerous airmanship” and cyber attacks by Russian hackers on U.S. institutions.

Richardson also said he was concerned about a report by Norwegian Defense Minister Ine Eriksen Soereide that Russia now had the ability to cut off resupply routes to Europe through its activities in the Arctic region.

Army Secretary Eric Fannning told a panel at the conference that Russia was clearly acting “in a destabilizing way,” and said the United States was learning from how the Russian military was behaving in Ukraine.

(Reporting by Andrea Shalal; Editing by Alan Crosby)

U.S. targets spying threat on campus with proposed research clampdown

A man walks through Killian Court at MIT in Cambridge

By Julia Edwards

WASHINGTON (Reuters) – Leading U.S. universities are pushing back against a proposed State Department rule that would bar foreign students from more research projects and classes involving information seen as vital to national security.

The proposal by the administration of President Barack Obama reflects growing worries in Washington over a rise in intellectual property theft from foreign adversaries such as China.

Research related to defense technology such as munitions, nuclear engineering and satellite technology would be particularly affected by the rule, which is still in the proposal process and has not been widely reported.

Defense contractors such as Northrop Grumman, Boeing and Lockheed Martin regularly sponsor university research, but did not respond to requests for comment.

The new rule, which largely applies to company-sponsored research, threatens to shrink the pool of research opportunities available for U.S. colleges, which have grown strongly in popularity among high-paying foreign students in recent years.

Some top U.S. schools do not accept any research grants that restrict participation by foreign citizens because it runs counter to their policies of academic freedom and non-discrimination.

In a letter to the State Department, Stanford University said it joined The Association of American Universities (AAU), Massachusetts Institute of Technology (MIT) and the University of Pennsylvania in criticizing the rule, citing “disastrous consequences.” The AAU represents 62 leading research institutions, including Harvard, Duke University, and the University of Chicago.

The universities say the rule would tip the balance too far in favor of national security against academic freedom.

“We wouldn’t be able to perform the same basic foundational research that we do,” said Stanford’s director of export compliance Steve Eisner. “Stanford has a policy of conducting research openly regardless of citizenship. We’re not going to tell our Chinese students that they can’t participate.”

No current cases of industrial espionage involve university research, though government officials told Reuters they suspect university faculty are violating loosely defined research rules.

A 2011 FBI report said “foreign adversaries and competitors take advantage” of the openness of information on college campuses and a small percentage of students, researchers and foreign professors are “working at the behest of another government.”

There were just under 1 million foreign students at U.S. colleges in the 2014-2015 school year, 31 percent of whom were Chinese, according to the Institute of International Education. That has grown from fewer than 100,000 in the 1960s when the United States began regulating their access to research.

In 2015, the number of intellectual property cases investigated by the FBI rose 53 percent from the previous year.

The FBI says China is the main culprit. It has accused Chinese nationals of attempting to export technology from the United States, including genetically modified corn seed and sensitive military information stored on Boeing computers.

The Department of Justice said in a statement that “we know that some foreign spies and criminals target students and faculty alike to steal valuable technology and intellectual property.” It added it was working with universities and laboratories to raise awareness of the threat.

A spokesman for China’s Ministry of Foreign Affairs, Hong Lei, said the United States should be improving cooperation with China instead of adding restrictions on foreign students.

“China’s scientific and technological developments have been achieved through the hard struggle of the Chinese people,” Lei said at a ministry briefing on Thursday.

SHRINKING RESEARCH CHOICES The proposed rule comes as universities face shrinking federal funding for research, forcing many to rely more on industry-sponsored projects.

State Department officials told Reuters they are aware of universities’ opposition to the rule, but have received no complaints or advice from companies that sponsor university research.

Experts in counterterrorism and counter nuclear proliferation told the State Department tighter restrictions on research access are necessary because universities are “a soft target,” said Tony Dearth, director of defense trade controls licensing at the State Department.

In the first case of its kind, University of Tennessee electrical engineering professor John Reese Roth was convicted in 2008 of exporting “defense articles” without a license, and of wire fraud and conspiracy and sentenced to four years.

Roth used foreign students in research on plasma-based flight-control devices for drone aircraft under a U.S. Air Force contract. He let two foreign students illegally gain access to sensitive information and export it to China, said the FBI.

The proposed rule would expand the definition of research classified as “technical” to any project that undergoes a pre-publication review by a private sponsor.

Unlike less-sensitive “fundamental” research, technical research is regulated in a variety of ways including a requirement that foreign students must apply for a license. Students from China, Iran and North Korea are usually denied licenses, said university officials.

The State Department argues that if a company wants to take a second look at research because it may be sensitive to its economic interests, foreign student involvement should be regulated.

Stanford told the State Department in a public letter that the new rule would affect a broad portion of industry-backed research because universities “routinely” allow sponsors to review results for up to 90 days.

Colleges that object to the government’s foreign-student restrictions have long avoided technical research and focused solely on projects classed as fundamental. The new rule would force them to either loosen their policies or give up defense-related research.

Schools with fundamental research-only policies are already in the minority. A Reuters survey of the top 35 research universities, ranked by R&D expenditures, found only 11 were still adhering to such a position.

Federal funding for research still dwarfs business funding, but the two are trending in opposite directions.

Over 2011-2014, federal funds for university research fell to $37.9 billion from $40.8 billion, according to the National Science Foundation. Over the same period, industry-sponsored university research grew to $5.9 billion from $4.9 billion.

“As federal funds have become scarcer and the competition has increased, I think we see a lot of universities expanding their partnerships with industry,” said Bob Hardy, director of intellectual property management at the Council on Government Relations, an association of research universities.

(Reporting by Julia Edwards; Editing by Kevin Drawbaugh and Stuart Grudgings)

Outmoded U.S. immigration system poses security risk, study shows

WASHINGTON (Reuters) – U.S. immigration authorities’ lack of progress in automating their systems is compromising border security, making it more difficult to process people seeking to get into the country, a report said on Tuesday.

“We may be admitting individuals who wish to do us harm, or who do not meet the requirements for a visa,” John Roth, the Inspector General for the Department of Homeland Security, told a Senate Homeland Security Committee hearing.

The report from Roth’s office, released on Tuesday, said immigration officials expect it will take $1 billion and another three years, 11 years into the effort, to move from a paper-based system to automated benefit processing.

U.S. lawmakers have been calling for a tighter visa system since the November Paris attacks and December San Bernardino shootings. In Paris, some of the militants were Europeans radicalized after visiting Syria, and a California attacker had been admitted on a fiance visa.

They want to ensure that potential militants cannot enter the United States under programs, such as the “visa waiver” granted citizens of most western countries.

Roth told the Senate Homeland Security Committee that workers processing millions of applications for immigrant benefits work with a system “more suited to an office environment from 1950 rather than 2016.”

He said some green cards and other immigration documents had been mailed to wrong addresses, or printed with incorrect names, which meant they could have fallen into the wrong hands.

The poor quality of electronic data that is kept makes it more difficult to engage in data matching, to root out fraud and identify security risks, Roth said.

Shipping, storing and handling over 20 million immigrant files costs more than $300 million a year, he added.

The report also said the EB-5 visa program, which admits investors who spend $500,000 or $1 million in the United States, depending on the area, may not be subject to close enough scrutiny to ensure Americans’ safety.

The current system also allows “known human traffickers” to use work and fiance visas to bring victims into the country, the report said.

Republican Senator Ron Johnson, the committee’s chairman, said the modernization was too slow and expensive. “It should not take years and years and billions and billions of dollars,” he said.

(Reporting by Patricia Zengerle; Editing by Marguerita Choy and Alan Crosby)

Ex-government employee pleads guilty in nuclear secrets cyber attack scheme

A former government employee who was accused of trying to orchestrate a cyber attack against computers that contained information about nuclear weapons pleaded guilty to a federal computer crime, the Department of Justice announced in a news release on Tuesday afternoon.

Prosecutors said 62-year-old Charles Harvey Eccleston, a former employee of the Nuclear Regulatory Commission, admitted his guilt in the attempted “spear-phishing” attack that took place last January. Eccleston was arrested after an undercover operation in which prosecutors said the accused dealt with FBI employees who had been posing as foreign government officials.

Spear-phishing is a type of cyber attack in which people send authentic-looking emails to their targets, encouraging the recipients to open them. However, the emails contain malicious code.

According to the Department of Justice, Eccleston sent an email that he believed contained a virus to about 80 Department of Energy employees, thinking the code would allow a foreign country to infiltrate or harm their computers. Prosecutors said Eccleston targeted employees “whom he claimed had access to information related to nuclear weapons or nuclear materials.”

The code was harmless and was actually crafted by the FBI, according to the release.

Eccleston, who thought he would be paid roughly $80,000 for sending the spear-phishing email, was arrested last March during a meeting with an undercover FBI employee, prosecutors said.

“Eccleston admitted that he attempted to compromise, exploit and damage U.S. government computer systems that contained sensitive nuclear weapon-related information with the intent of allowing foreign nations to gain access to that information or to damage essential systems,” Assistant Attorney General John P. Carlin said in a statement announcing the guilty plea.

Prosecutors said Eccleston was fired from his job with the Nuclear Regulatory Commission in 2010. He moved to the Philippines the following year and had been living there until his arrest.

The alleged cyber attack wasn’t the first time that law enforcement heard Eccleston’s name.

Prosecutors said the FBI first learned about Eccleston in 2013 after he walked into an embassy in the Philippines and offered to sell a list of 5,000 U.S. government email accounts for $18,800. If the nation wasn’t interested, Eccleston said he would offer the list to China, Iran or Venezuela.

That November, the FBI sent undercover employees to meet with Eccleston and had them pose as foreign government officials. One FBI employee bought a list of 1,200 email addresses for $5,000, prosecutors said, though an investigation found the accounts were publicly available.

Prosecutors said Eccleston communicated with the employees for “several months,” and offered to help design the spear-phishing emails during a meeting with an undercover FBI employee in June 2014. He made the bogus emails look like advertisements for a nuclear energy conference.

Eccleston pleaded guilty to attempted unauthorized access and intentional damage to a protected computer and faces 24 to 30 months in prison and a $95,000 fine when he is sentenced in April, prosecutors announced.

U.S. weighs making Hawaii missile test site operational

WASHINGTON (Reuters) – The U.S. military has stepped up discussions on converting its Aegis missile defense test site in Hawaii into a combat-ready facility that would bolster American defenses against ballistic missile attacks, according to sources familiar with the discussions.

The proposal, which has been discussed sporadically for several years, was given fresh impetus by North Korea’s fourth nuclear test on Jan. 6 and by recent strides in China’s missile technology capabilities, said current and former U.S. military officials, congressional aides and other sources.

A Chinese official in Washington suggested that Beijing would see such a U.S. move as counter-productive to relations.

Aegis, developed by Lockheed Martin Corp for use on U.S. Navy destroyers, is among the most advanced U.S. missile defense systems, integrating radars, software, displays, weapons launchers and missiles.

Setting up its land version — Aegis Ashore — in Hawaii and linking it with Aegis destroyers would add a permanent missile defense site to the Pacific, providing an extra layer of protection for the U.S. islands and the West Coast at a time when North Korea is improving its missile capabilities.

Ground-based interceptors in Alaska and California provide the current defense for Hawaii and the continental United States against missile attacks.

The Navy also relies on deploying Aegis-equipped destroyers based on U.S. intelligence warnings about imminent threats. North Korea’s development of mobile missile launchers has made it more difficult to predict launches in advance.

To make the test site combat-ready, the U.S. military would need to add personnel, stockpile live missiles and beef up security, at an estimated cost of around $41 million, said the sources, who were not authorized to speak publicly.

It would also need to integrate the site into the larger U.S. ballistic missile defense system, with control likely shifting from the Pentagon’s Missile Defense Agency to the U.S. Navy, the sources said.

U.S. Navy Admiral Harry Harris, commander of U.S. Pacific Command, has been engaged in high-level discussions about ways to protect Hawaii, Guam and the continental United States from threats like North Korea, his spokesman, Captain Darryn James told Reuters.

James said no decisions had been made, but the Aegis Ashore site in Hawaii had a “proven test capability.”

“Admiral Harris is always exploring options to forward deploy and operationalize the latest advancements in ballistic missile defense technologies in the Pacific, where we face increasingly sophisticated threats to the homeland,” James said.

It remains unclear when the U.S. administration could reach a decision, but implementing the changes could be done swiftly, the sources said.

STRENGTHENING THE SHIELD

North Korea’s nuclear test in January underscored U.S. concerns that the secretive state has the ability to place a bomb on a long-range ballistic missile that could reach the U.S. West Coast.

Any moves to boost missile defenses could inflame growing military rivalry between China and Washington and its allies.

Converting the site on Hawaii’s Kauai island into combat use could rankle China at a time of heightened tensions with Washington over the disputed South China Sea. Beijing has already expressed concern about the possible deployment of the mobile U.S. Terminal High Altitude Area Defense (THAAD) system to South Korea.

Zhu Haiquan, spokesman for the Chinese Embassy in Washington, said Beijing believed the nuclear proliferation issue would be best resolved diplomatically.

“All measures seeking to increase military capacities will only intensify antagonism and will not help to solve the problem,” he said when asked about the possible U.S. move.

“China hopes the relevant country will proceed on the basis of regional peace and stability, adopt a responsible attitude and act prudently in regard to the anti-missile issue.”

Russia, meanwhile, has repeatedly objected to the U.S. Aegis Ashore site in Romania, which is due to become operational in the coming weeks. A similar site is due to open in Poland in 2018.

The Missile Defense Agency explored the prospect of putting the Hawaii test site into full operation in a classified report to Congress in September 2014, according to one of the sources.

Congress requires the agency to update its estimate of the cost, feasibility and effectiveness of adding more Aegis Ashore sites this spring.

The Aegis Ashore test site in Hawaii completed its first intercept test in December, using a Raytheon Co Standard Missile-3 Block 1B to destroy a target that replicated an Iranian Ghadr-110 medium-range missile.

Riki Ellison, who heads the non-profit Missile Defense Advocacy Alliance, said the new Aegis installation would in effect give the U.S. military three chances to shoot down a missile aimed at Hawaii, up from one currently.

“If you have the assets on the island, why not use them to protect against possible missile attacks from North Korea?” Ellison said.

The December test proved the Aegis Ashore system could fire two different Raytheon Co missiles — one inside the earth’s atmosphere and one outside — at an enemy missile.

Expansion of military operations in Hawaii have sparked protests by residents in the past.

But Hawaii Representative Mark Takai, a Democrat and member of the House Armed Services Committee, said the conversion is “the best way to ensure we have protection for Hawaii’s critical defense infrastructure against increasingly belligerent actors that threaten our country.

(Additional reporting by Matt Spetalnick and Jeff Mason; editing by Stuart Grudgings)

U.S. begins implementing restrictions on visa-free travel

United States officials have begun implementing new policies regarding the country’s Visa Waiver Program, the State Department announced Thursday.

The program allows citizens and nationals of 38 countries to visit the United States without obtaining a visa, provided they stay for fewer than 90 days.

Congress sought to reform the program in the wake of the Paris terrorist attacks.

The new laws prevent anyone who has visited Iran, Iraq, Syria or Sudan since March 1, 2011, or holds citizenship in one of those four countries, from entering the United States through the Visa Waiver Program. They will now have to apply for a visa at a U.S. embassy, a process that includes an in-person interview.

A White House fact sheet says 20 million people visit the United States under the Visa Waiver Program every year, and the program had utilized security checks designed to keep terrorists and other potential security threats out of the nation.

Those who sought to reform the program said there were shortcomings in that screening process, and Congress voted to approve the changes in December.

Representative Candice Miller (R-Michigan), who originally introduced the legislation, issued a statement when it was passed. She said the bill “improves our ability to identify and stop individuals who have traveled to terrorist hotspots to join ISIS and other like-minded organizations before they reach U.S. soil.”

In a news release, State Department officials said “the great majority” of people who use the Visa Waiver Program would not be affected by the changes.

The department added that Secretary of Homeland Security can waive the visa requirement for individuals who went to the aforementioned four countries on a case-by-case basis. People who traveled for diplomatic reasons, humanitarian work, military service or as a journalist may qualify for waivers.