Brody, Ken

Brody, Ka Groups Assail THE WASHINGTON POST S Wiretapping Plan FRIDAY, NOVEMBER 3, 1995 By Mike Mills 0.25 percent capacity requirement. Washington Post Staff Writer Groups such as the Electronic Pri- Privacy advocates are fuming over vacy Information Center (EPIC) and an FBI proposal for a new generation the American Civil Liberties Union of wiretap technology, saying it would have denounced the plan, saying it encourage law enforcement officials to would greatly expand the powers of greatly expand their use of electronic the FBI and other agencies. Local, state and federal law enforcement offi- 5 More Nations dan is not far behind. According to the FAA, which has been inspecting surveillance. cers conducted 1,154 wiretaps last foreign carriers that serve the Unit- The FBI, however, contends that its request meets only its minimum re- year, according to the FBI, a number Placed on FAA ed States, Israel and Jordan did not that has remained relatively consistent have an adequate number of trained quirements for what it will take to pa- trol tomorrow's electronic byways and in recent years. personnel to inspect and license air- stresses that requirements that court The FBI plan, according to an EPIC Air Safety List lines. orders be obtained before wires are statement yesterday, "would permit Ecuador also was cited for a lack tapped would remain in place. wiretapping at a level at least a thou- of adequate technical expertise. Pe- Either way, the proposal could with- sand times greater than currently oc- ru and Venezuela were listed by the er unless Congress agrees to compen- curs in the United States." By Don Phillips FAA for the somewhat more serious Washington Post Staff Writer sate phone companies for installing the James Kallstrom, assistant FBI di- problem of failing to develop ade- technology. rector in charge of the New York field The Federal Aviation Administra- quate civil aviation laws and regula- One year ago, after a bitter fight be- division, argues that the proposal tion yesterday listed five coun- tions. tween privacy advocates and the FBI, would in fact reduce the FBI's surveil- tries-Israel, Jordan, Ecuador, Peru The FAA survey addresses only President Clinton signed legislation or- lance authority. "Today we could and Venezuela-that the agency the adequacy of government over- dering telecommunications companies tap all the phones in the United says fail to meet international avia- sight, not the adequacy of the air- to alter their equipment in ways that States," he said, referring to older, tion safety standards. lines themselves. would allow federal, state and local au- pre-digital technology. Under the plan, The five have joined eight others The eight other countries on the thorities to continue conducting elec- the FBI's surveillance ability would already placed in a "conditional" cat- "conditional" list are Aruba, Bolivia, tronic surveillance. shrink to a maximum of 1 percent of egory that allows their airlines to Guatemala, Jamaica, the Nether- Law enforcement officials say the simultaneous telephone calls from any continue flying. into the United lands Antilles, the Philippines, Trini- age of digital computing is hampering one telephone switch, he said. States until they implement meas- dad-Tobago and Turkey. what used to be an easy job of tapping Kallstrom said a typical central ures that bring their aviation regula- Eleven countries are in the "does into copper telephone lines. Taps into switching office in New York that tory agencies up to standards set by not comply" category, banning U.S. digital networks require help from phone company personnel. Advanced serves 50,000 telephone lines has a the International Civil Aviation Or- flights. They are Belize, the Domini- capacity to carry only 5,000 calls si- ganization. can Republic, Gambia, Ghana, Haiti, telephone services, such as call for- multaneously. It is the latter number, FAA officials said Israel offered an Honduras, Kiribati, Nicaragua, Para- warding, also allow people to circum- vent wiretaps. not the former, he said, on which the "immediate and forceful" response to guay, Uruguay and Zaire. Of those FAA concerns and is "within days" of countries, only Haiti has an interna- As the law required, the FBI on FBI bases its calculations. So the high- est level of simultaneous surveillance meeting the standards, and that Jor- tional airline. Oct. 16 published in the Federal Reg- FBI, From D1 in that area, he said, would be 50 lines. "We've never done that many" taps ister a proposal for how to implement at one time, he said. But in a "worst- the law. case scenario," such as a major act of The agency proposed establishing terrorism, the agency might need such three categories of surveillance. Cate- ability, he said. "I think it's a reason- gory I would include high-crime urban able, minimal, conservative number." areas, and would require phone com- The law requires the federal gov- panies to make 1 percent of their ernment to compensate telephone switches' calling capacity subject to si- companies for the cost of changing multaneous surveillance. Category II their equipment. The Clinton adminis- would include lower-crime urban and tration proposes spending $500 million suburban areas, and would require 0.5 over four years. But some Republicans percent surveillance capacity, and Cat- in Congress have held up funding, egory III for rural areas would have a amid concerns about how much sur- veillance powerto give the ERI Brody Resigns as Head Of Export-Import Bank CEO Restructured Agency, Aiding U.S. Firms last few years," Martin Duggan, presi- dent of the Small Business Exporters By Steven Pearlstein U.S. Trade Representative, and the Association, said yesterday. According Washington Post Staff Writer Overseas Private Investment Corp. to bank documents, the number of Brody said his decision was unrelat- small-business transactions increased Kenneth D. Brody, the onetime Wall ed to the organizational review and 50 percent last year and now repre- Street financial wizard who helped noted that the bank continues to enjoy sents 20 percent of its $12 billion a spearhead the Clinton administration's strong bipartisan support in Congress. year in loans and loan guarantees. campaign to boost U.S. business Unlike many agencies, the bank is not At the same time, as communist abroad, is resigning as head of the gov- slated for any cuts in its $800 million governments have crumbled and gov- ernment's export financing agency. annual appropriation, which is used to ernments everywhere have moved to- As chairman and chief executive of subsidize loans to U.S. companies, cov- ward privatization, Brody has shifted the Export-Import Bank of the United er loan losses and finance the bank's the bank's focus from loans involving States, Brody, 52, undertook a top-to- administrative costs. foreign governments to purely private bottom restructuring of the bank's op- transactions, which now account for Brody will remain at the bank erations during the last three years, through the end of the year, when he two-thirds of the bank's activity, up reducing the time and cost needed to from one-third a decade ago. evaluate loan applications, reaching out will be replaced on an acting basis by Brody also has given top priority to Vice Chairman Martin "Tino" Ka- to small-business exporters and redi- marck. Kamarck too is a Wall Street U.S. companies that are competing for recting its lending activities to develop- ing markets in Asia, Latin America and alumnus and like Brody has close ties contracts against European and Japa- Eastern Europe. to the Clinton administration. Ka- nese firms that receive subsidies from marck's wife, Elaine, is a senior advis- their governments. "This is perhaps the most changed er to Vice President Gore. "He's just been very impressive agency in the federal government," said Brody yesterday. "We set out with a set During Brody's tenure, the bank re- probably the most dynamic and ag- duced from three months to a week gressive chairman the bank has ever of very clear, difficult objectives and we have met and exceeded every one of the average time for a response on had," said Peggy Houlihan, president of most loan applications. After years of the Coalition for Employment Through them. Now it is time to move on." being viewed as a financial handmaiden Exports, a Washington lobbying group. Brody may go down as the Ex-Im to big business and big banks, it has ac- Brody, who grew up in Silver Bank's last independent chairman. The tively solicited applications from small- Spring, was considered as a candidate House and Senate are considering *business exporters who need working earlier this year for the presidency of whether to merge the Ex-Im Bank capital to carry them from the time the World Bank, losing out to financier with related agencies, including the they secure an overseas order until and arts patron James Wolfensohn. He trade development arm of the Com- they receive final payment. said he will continue to live in Washing- merce Department, the Office of the "They've come a long way in the ton and look for new opportunities in business and finance.