U.S. blames North Korea for hacking spree, says more attacks likely

The North Korea flag flutters next to concertina wire at the North Korean embassy in Kuala Lumpur, Malaysia March 9, 2017. REUTERS/Edgar Su

By Dustin Volz and Jim Finkle

WASHINGTON/TORONTO (Reuters) – The U.S. government on Tuesday issued a rare alert squarely blaming the North Korean government for a raft of cyber attacks stretching back to 2009 and warning that more were likely.

The joint warning from the U.S. Department of Homeland Security and the Federal Bureau of Investigation said that “cyber actors of the North Korean government,” referred to in the report as “Hidden Cobra,” had targeted the media, aerospace and financial sectors, as well as critical infrastructure, in the United States and globally.

The new level of detail about the U.S. government’s analysis of suspected North Korean hacking activity coincides with increasing tensions between Washington and Pyongyang because of North Korea’s missile tests. The alert warned that North Korea would continue to rely on cyber operations to advance its military and strategic objectives.

North Korea has routinely denied involvement in cyber attacks against other countries.

The North Korean mission to the United Nations was not immediately available for comment.

Tuesday’s alert said Hidden Cobra has been previously referred to by private sector experts as Lazarus Group and Guardians of the Peace, which have been linked to attacks such as the 2014 intrusion into Sony Corp’s <6758.T> Sony Pictures Entertainment.

Symantec Corp <SYMC.O> and Kaspersky Lab both said last month it was “highly likely” that Lazarus was behind the WannaCry ransomware attack that infected more than 300,000 computers worldwide, disrupting operations at hospitals, banks and schools.

The alert did not identify specific Hidden Cobra victims. It said the group had compromised a range of victims and that some intrusions had resulted in thefts of data while others were disruptive. The group’s capabilities include denial of service attacks, which send reams of junk traffic to a server to knock it offline, keystroke logging, remote access tools and several variants of malware, the alert said.

John Hultquist, a cyber intelligence analyst with FireEye Inc <FEYE.O>, said that his firm was concerned about increasingly aggressive cyber attacks from North Korea.

The hacks include cyber espionage at South Korean finance, energy and transportation firms that appears to be reconnaissance ahead of other attacks that would be disruptive or destructive, he said.

“It suggests they are preparing for something fairly significant,” he added.

Hidden Cobra commonly targets systems that run older versions of Microsoft Corp <MSFT.O> operating systems that are no longer patched, the alert said, and also used vulnerabilities in Adobe Systems Inc’s <ADBE.O> Flash software to gain access into targeted computers.

The report urged organizations to upgrade to current versions of Adobe Flash and Microsoft Silverlight or, when possible, uninstall those applications altogether.

Microsoft said it an emailed statement that it had “addressed” the Silverlight issue in a January 2016 software update. Adobe said via email that it patched the vulnerabilities in June 2016.

North Korean hacking activity has grown increasingly hostile in recent years, according to Western officials and cyber security experts.

The alert arrived on the same day that North Korea released an American university student who had been held captive by Pyongyang for 17 months.

Otto Warmbier, 22, was on his way back to the United States on Tuesday but in a coma and in urgent need of medical care, according to Bill Richardson, a veteran former diplomat and politician who has played a role in past negotiations with North Korea.

“The U.S. government seeks to arm network defenders with the tools they need to identify, detect and disrupt North Korean government malicious cyber activity that is targeting our country’s and our allies’ networks,” a DHS official said about the alert. The official was not authorized to speak publicly.

(Reporting by Dustin Volz in Washington and Jim Finkle in Toronto; Additional reporting by Michelle Nichols at the United Nations; editing by Jonathan Oatis, Lisa Shumaker, Grant McCool)

Venezuela chief prosecutor accuses government of harassment; violence flares

A protester holds a national flag as a bank branch, housed in the magistracy of the Supreme Court of Justice, burns during a rally against Venezuela's President Nicolas Maduro, in Caracas, Venezuela June 12, 2017. REUTERS/Carlos Garcia Rawlins

By Andreina Aponte and Corina Pons

CARACAS (Reuters) – Venezuela’s chief prosecutor said on Monday her family had been threatened and followed by intelligence agents since she split with the government, and violence broke out in protests at the Supreme Court over a bid to change the constitution.

Luisa Ortega, a former ally of President Nicolas Maduro who has turned against him and the ruling Socialist Party, has questioned Maduro’s handling of opposition street protests in recent weeks and challenged his plan to rewrite a constitution brought in by late leader Hugo Chavez.

“Somebody is threatening my family,” she said in a radio interview. “They harass them. They follow them, patrol cars that look like SEBIN,” she said, referring to the Bolivarian Intelligence Service (SEBIN).

State officials have launched a series of verbal attacks on Ortega, ranging from questioning her sanity to accusing her of promoting violence.

She said she would hold the government responsible if her family was harmed.

Fanned by anger at triple-digit inflation along with shortages of food and medicine, protests have grown smaller but more violent over the past two months, with at least 67 killed and thousands injured.

Ortega’s office said it was investigating the death on Monday of a man called Socrates Salgado, 49, in a coastal town near Caracas. Opposition politicians said he died during a protest.

“INEPT”

In April, Ortega successfully challenged a Supreme Court decision to assume the powers of the opposition-controlled legislature, making her the highest official in years to openly break with the ruling party.

She filed a Supreme Court challenge last week to Maduro’s plan to elect a legislative super-body known as a constituent assembly, that will have the power to rewrite the constitution and in some cases dissolve state institutions.

The Supreme Court rejected the challenge on Monday.

“The electoral chamber of the Supreme Court of Justice declares that the (challenge) filed by Luisa Ortega Diaz is inadmissible because it is an inept accumulation of pretensions,” the court said on Twitter.

In response, Ortega launched another legal challenge, this time claiming that 13 judges appointed to the court in 2015 were put there via an “irregular” process and that they should be replaced.

Protesters angry at the pro-government court’s ruling on Monday attacked a branch of the court with petrol bombs and damaged a bank in the same building, which was engulfed in smoke and flames. Several protesters were injured as security guards tried to repel them.

Police arrested 24 people for their involvement in the daylight attack on a busy office block, which was condemned by Maduro as a terrorist act. Opposition leader Henrique Capriles said it was the work of government agitators.

Outside the Supreme Court headquarters in downtown Caracas, protesters backing Ortega were confronted earlier by government supporters.

Maduro says Venezuela is the victim of an “economic war” that he says can only be addressed by a constituent assembly.

The elections council has set an election for the assembly for July 30. The opposition is refusing to participate in the vote, saying it is rigged in favor of the Socialist Party.

In a move seen as crimping opposition power, the Interior Ministry on Monday took direct control of the state police force in Miranda, a region that includes a wealthy part of Caracas. Capriles, a former presidential candidate, is its governor.

Citing the current constitution, Interior Minister Nestor Reverol said the six-month “intervention” was justified because there was evidence the police force was involved in rights abuses and organized crime.

Capriles said the plan was to use the police force to repress protests and said members of the force should not obey any order that violated human rights or the constitution.

(Writing by Frank Jack Daniel and Brian Ellsworth; Editing by Marguerita Choy, Cynthia Osterman and Paul Tait)

U.S. wholesale inventories post biggest drop in more than a year

Shelves are stacked with wholesale merchandise at a Wal-Mart Stores Inc company distribution center in Bentonville, Arkansas June 6, 2013. REUTERS/Rick Wilking

WASHINGTON, June 9 (Reuters) – – U.S. wholesale inventories fell more steeply in April than the government had previously estimated, posting their biggest drop in more than a year as sales also fell sharply.

The Commerce Department said on Friday that wholesale inventories fell 0.5 percent in April after increasing 0.1 percent in March. The department reported last month that wholesale inventories slipped 0.3 percent in April.

Automotive inventories fell 1.4 percent while petroleum inventories dropped 5.0 percent, their biggest fall since December 2015. Paper inventories fell 1.8 percent in the category’s biggest drop since January 2013.

Wholesale stocks of electrical goods also slipped 0.1 percent while machinery inventories were flat.

Sales at wholesalers fell 0.4 percent in April after falling 0.2 percent in March. Sales of electrical goods rose 0.7 percent while those of machinery fell 0.8 percent. Auto sales were up 1.3 percent.

At April’s sales pace it would take wholesalers 1.28 months to clear shelves, unchanged from March.

(Reporting by David Lawder; Editing by Paul Simao)

Missouri governor calls special session on abortion

Missouri Governor Eric Greitens seen at an industrial site in this undated photo from his social media site made available May 30, 2017. Office of the Missouri Governor/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. EDITORIAL USE ONLY. NO RESALES. NO ARCHIVE. MANDATORY CREDIT.

By Chris Kenning

(Reuters) – Missouri’s Republican governor on Wednesday said he will convene a special legislative session next week to consider new abortion regulations and counter a local St. Louis law he said made it an “abortion sanctuary city.”

The session, set to start on Monday, will seek stricter regulations on abortion clinics, including requiring annual inspections and that clinics adopt plans for potential medical complications, Governor Eric Greitens said in a statement.

That came in response to a federal judge’s ruling in April that blocked requirements for clinics to meet standards for surgical centers and for doctors to have hospital privileges.

Greitens said he also wants to target an ordinance approved by St. Louis aldermen in February banning employers and landlords from discriminating against women who have had an abortion, according to the St. Louis Post-Dispatch newspaper.

The Missouri legislative session ended in May without approving a proposal to nullify the ordinance, which critics said would force groups that oppose abortion to sanction it and could threaten the work of anti-abortion pregnancy resource centers.

The Roman Catholic Archdiocese of St. Louis in late May sued to overturn the ordinance.

“Politicians are trying to make it illegal, for example, for pro-life organizations to say that they just want to hire pro-life Missourians,” Greitens said in a statement.

Allison Dreith, executive director of the abortion rights group NARAL Pro-Choice Missouri, denounced the governor’s move.

“Make no mistake about it. The intent behind the governor’s actions is to shame women for their personal medical decisions and make basic reproductive health care harder to access,” she said in a statement.

(Reporting by Chris Kenning; Editing by Jonathan Oatis)

Exclusive: Trump targets illegal immigrants who were given reprieves from deportation by Obama

FILE PHOTO - A U.S. border patrol agent escorts men being detained after entering the United States by crossing the Rio Grande river from Mexico, in Roma, Texas, U.S. on May 11, 2017. REUTERS/Carlos Barria/File Photo

By Mica Rosenberg and Reade Levinson

(Reuters) – In September 2014, Gilberto Velasquez, a 38-year-old house painter from El Salvador, received life-changing news: The U.S. government had decided to shelve its deportation action against him.

The move was part of a policy change initiated by then-President Barack Obama in 2011 to pull back from deporting immigrants who had formed deep ties in the United States and whom the government considered no threat to public safety. Instead, the administration would prioritize illegal immigrants who had committed serious crimes.

Last month, things changed again for the painter, who has lived in the United States illegally since 2005 and has a U.S.-born child. He received news that the government wanted to put his deportation case back on the court calendar, citing another shift in priorities, this time by President Donald Trump.

The Trump administration has moved to reopen the cases of hundreds of illegal immigrants who, like Velasquez, had been given a reprieve from deportation, according to government data and court documents reviewed by Reuters and interviews with immigration lawyers.

Trump signaled in January that he planned to dramatically widen the net of illegal immigrants targeted for deportation, but his administration has not publicized its efforts to reopen immigration cases.

It represents one of the first concrete examples of the crackdown promised by Trump and is likely to stir fears among tens of thousands of illegal immigrants who thought they were safe from deportation.

While cases were reopened during the Obama administration as well, it was generally only if an immigrant had committed a serious crime, immigration attorneys say. The Trump administration has sharply increased the number of cases it is asking the courts to reopen, and its targets appear to include at least some people who have not committed any crimes since their cases were closed.

Between March 1 and May 31, prosecutors moved to reopen 1,329 cases, according to a Reuters’ analysis of data from the Executive Office for Immigration Review, or EOIR. The Obama administration filed 430 similar motions during the same period in 2016. (For a graphic: http://tmsnrt.rs/2s8csUZ)

Jennifer Elzea, a spokeswoman for U.S. Immigration and Customs Enforcement, confirmed the agency was now filing motions with immigration courts to reopen cases where illegal immigrants had “since been arrested for or convicted of a crime.”

It is not possible to tell from the EOIR data how many of the cases the Trump administration is seeking to reopen involve immigrants who committed crimes after their cases were closed.

Attorneys interviewed by Reuters say indeed some of the cases being reopened are because immigrants were arrested for serious crimes, but they are also seeing cases involving people who haven’t committed crimes or who were cited for minor violations, like traffic tickets.

“This is a sea change, said attorney David Leopold, former president of the American Immigration Lawyers Association. “Before, if someone did something after the case was closed out that showed that person was a threat, then it would be reopened. Now they are opening cases just because they want to deport people.”

Elzea said the agency reviews cases, “to see if the basis for prosecutorial discretion is still appropriate.”

POLICY SHIFTS

After Obama announced his shift toward targeting illegal immigrants who had committed serious crimes, prosecutors embraced their new discretion to close cases.

Between January 2012 and Trump’s inauguration on Jan. 20, the government shelved some 81,000 cases, according to Reuters’ data analysis. These so-called “administrative closures” did not extend full legal status to those whose cases were closed, but they did remove the threat of imminent deportation.

Trump signed an executive order overturning the Obama-era policy on Jan. 25. Under the new guidelines, while criminals remain the highest priority for deportation, anyone in the country illegally is a potential target.

In cases reviewed by Reuters, the administration explicitly cited Trump’s executive order in 30 separate motions as a reason to put the immigrant back on the court docket. (For a link to an excerpted document: http://tmsnrt.rs/2sI6aby)

Since immigration cases aren’t generally public, Reuters was able to review only cases made available by attorneys.

In the 32 reopened cases examined by Reuters:

–22 involved immigrants who, according to their attorneys, had not been in trouble with the law since their cases were closed.

–Two of the cases involved serious crimes committed after their cases were closed: domestic violence and driving under the influence.

–At least six of the cases involved minor infractions, including speeding after having unpaid traffic tickets, or driving without a valid license, according to the attorneys.

In Velasquez’s case, for example, he was cited for driving without a license in Tennessee, where illegal immigrants cannot get licenses, he said.

“I respect the law and just dedicate myself to my work,” he said. “I don’t understand why this is happening.”

Motions to reopen closed cases have been filed in 32 states, with the highest numbers in California, Florida and Virginia, according to Reuters’ review of EOIR data. The bulk of the examples reviewed by Reuters were two dozen motions sent over the span of a couple days by the New Orleans ICE office.

PUMPKIN SEED ARREST

Sally Joyner, an immigration attorney in Memphis, Tennessee said one of her Central American clients, who crossed the border with her children in 2013, was allowed to stay in the United States after the government filed a motion to close her case in December 2015.

Since crossing the border, the woman has not been arrested or had trouble with law enforcement, said Joyner, who asked that her client’s name not be used because of the pending legal action.

Nevertheless, on March 29, ICE filed a two-page motion to reopen the case against the woman and her children. When Joyner queried ICE, an official said the agency had been notified that her client had a criminal history in El Salvador, according to documents seen by Reuters.

The woman had been arrested for selling pumpkin seeds as an unauthorized street vendor. Government documents show U.S. authorities knew about the arrest before her case was closed.

Dana Marks, president of the National Association of Immigration Judges, said that revisiting previously closed matters will add to a record backlog of 580,000 pending immigration cases.

“If we have to go back and review all of those decisions that were already made, it clearly generates more work,” she said. “It’s a judicial do-over.”

(This version of the story was refiled to change “of” to “for” in Executive Office for Immigration Review in paragraph 8)

(Reporting by Mica Rosenberg and Reade Levinson in New York; Additional reporting by Julia Edwards Ainsley in Washington; Editing by Sue Horton and Ross Colvin)

Comey says Trump fired him to undermine FBI Russia investigation

Former FBI Director James Comey arrives to testify before a Senate Intelligence Committee hearing on Russia's alleged interference in the 2016 U.S. presidential election on Capitol Hill in Washington, U.S., June 8, 2017. REUTERS/Jonathan Ernst

By Patricia Zengerle and Susan Cornwell

WASHINGTON (Reuters) – Former FBI director James Comey on Thursday accused President Donald Trump on Thursday of firing him to try to undermine the bureau’s investigation into possible collusion between his 2016 presidential campaign team and Russia.

Trump dismissed Comey on May 9 and the administration gave differing reasons for the action. Trump later contradicted his own staff and acknowledged on May 11 that he fired Comey because of the Russia probe.

Asked at a U.S. congressional hearing why he was fired, Comey said he did not know for sure. But he added: “Again, I take the president’s words. I know I was fired because of something about the way I was conducting the Russia investigation was in some way putting pressure on him, in some way irritating him, and he decided to fire me because of that.”

Comey earlier told the Senate Intelligence Committee in the most eagerly anticipated U.S. congressional hearing in years that he believed Trump had directed him to drop an FBI probe into the Republican president’s former national security adviser as part of the Russia investigation.

But Comey would not say whether he thought the president sought to obstruct justice.

“I don’t think it’s for me to say whether the conversation I had with the president was an effort to obstruct. I took it as a very disturbing thing, very concerning,” Comey told the committee.

Trump critics say that any efforts by the president to hinder an FBI probe could amount to obstruction of justice. Such an offense potentially could lead to Trump being impeached by Congress, although the Republicans who control the Senate and House of Representatives have shown little appetite to make such a move against him.

Dressed in a dark suit and giving short, deliberative answers, Comey painted a picture of an overbearing president who pressured him to stop the FBI looking into Trump’s former national security adviser Michael Flynn.

In more than two hours of testimony, Comey did not make any mayor new revelations about alleged links between Trump or his associates and Russia, an issue that has dogged Trump’s first months in office and distracted from his policy goals such as overhauling the U.S. healthcare system and making tax cuts.

Trump, in a speech across town, told supporters their movement was “under siege” and vowed to fight on.

“We’re under siege … but we will come out bigger and better and stronger than ever,” he said. “We will not back down from doing what is right.”

“We know how to fight and we will never give up,” the president added.

U.S. stocks were higher in early afternoon trading on Thursday after investors concluded Comey’s testimony would not in itself bring down Trump’s presidency.

(Additional reporting by Jan Wolfe in New York, Doina Chiacu, Eric Walsh, Roberta Rampton and Susan Heavey in Washington; Writing by Alistair Bell; Editing by Will Dunham)

Comey’s caution to meet Trump’s tweets in Russia hearing

FILE PHOTO: U.S. President Donald Trump (L) speaks in Ypilanti Township, Michigan March 15, 2017 and FBI Director James Comey testifies before a Senate Judiciary Committee hearing in Washington, D.C., May 3, 2017 in a combination of file photos. REUTERS/Jonathan Ernst/Kevin Lamarque/File Photo

By Warren Strobel and Patricia Zengerle

WASHINGTON (Reuters) – Former FBI Director James Comey will tell Congress on Thursday that President Donald Trump pressed him repeatedly to halt a probe into his ex-national security adviser’s ties with Russia and to declare publicly that Trump himself was not under investigation.

Comey’s testimony in the most widely anticipated congressional hearing in years will put at center stage a high-stakes clash between two men with vastly different personas.

The outcome could have significant repercussions for Trump’s 139-day-old presidency as special counsel Robert Mueller and multiple congressional committees investigate whether Trump’s campaign team colluded with Russia during the 2016 presidential election. The White House and Russia deny any collusion occurred.

In written testimony released by the Senate Intelligence Committee on Wednesday, Comey quoted Trump as telling him the Russia investigation was a “cloud” impairing his ability to operate as president.

Comey said in his statement that in a one-on-one meeting in the Oval Office on Feb.14, Trump asked him to drop an investigation of former national security adviser Michael Flynn that is part of a wider probe into Russia’s alleged meddling in the 2016 presidential election.

“I hope you can see your way clear to letting this go, to letting Flynn go,” Comey quoted Trump as saying.

Comey also said Trump told him during a one-on-one dinner on Jan. 27 that he needed “loyalty.”

Trump fired the FBI chief on May 9, setting off a political firestorm, and he has since called Comey a “showboat” and a “grandstander.”

Democrats, along with some Republicans, on the committee will use the hearing on Thursday to press for further details of any attempts by Trump to blunt the Russia investigation.

“I’m very concerned about the implication that Comey keeping his job was dependent on his loyalty or, in Comey’s words, developing a ‘patronage relationship.’ That is another way the President sought to impede the investigation,” Democratic Senator Ron Wyden said in a comment emailed to Reuters.

Senator Susan Collins, a Republican member of the panel, said earlier this week: “I want to know more also about the president’s interactions with Mr. Comey with regard to the investigation into Michael Flynn. … It makes a big difference what the exact words were, the tone of the president, the context of the conversation.”

But Republican Senator Richard Burr, the panel’s chairman, sought to downplay Comey’s “loyalty” remark, saying: “I don’t think it’s wrong to ask for loyalty from anybody in an administration.”

Trump’s attorney, Marc Kasowitz, released a statement on Wednesday saying the president felt “totally vindicated” by Comey’s acknowledgement that he had told Trump on three occasions that he was not personally under investigation.

Despite landing himself in other political controversies, including his handling of the FBI investigation of 2016 Democratic presidential nominee Hillary Clinton’s private email server, Comey is widely seen as cautious and fact-oriented.

“One thing you don’t ever hear about him is (that) people don’t think he tells the truth. He brings a lot of credibility,” said Benjamin Wittes, a Comey confidant and senior fellow at the Brookings Institution.

Less than five months into office, Trump has proven himself to be impulsive and visceral, turning to Twitter to lambaste perceived adversaries in 140 characters or less.

AWKWARD RELATIONSHIP

As Comey’s written testimony underscored, he and the U.S. president had an awkward, topsy-turvy relationship.

Then-candidate Trump excoriated Comey last summer for deciding not to prosecute Clinton over her handling of government emails, then praised him when he reopened the issue in October just days before the election.

Trump initially kept Comey on as FBI director, and publicly embraced him at a January White House event. Two days after firing him, Trump said it was because of “this Russia thing.”

Trump is widely expected to use his Twitter account, which lists 31.8 million followers, to counterpunch at Comey on Thursday – perhaps even in real time.

The Republican president’s unconstrained use of Twitter has confounded allies and skeptics alike.

“Every time you tweet, it makes it harder on all of us who are trying to help you. I don’t think you did anything wrong. Don’t get in the way of an investigation that could actually clear you,” Republican Senator Lindsey Graham told Fox News on Wednesday.

Despite the high drama, Comey is not expected to drop any major new bombshells, or directly accuse Trump of trying to obstruct justice by asking him to halt the FBI probe of Flynn.

He is also unlikely to reveal new details of the ongoing Russia investigation. U.S. law enforcement officials said Comey had discussed his testimony with Mueller’s investigative team to ensure it did not interfere with the special counsel’s probe.

“The one thing you know he’s not going to do, you know he’s not going to reach a conclusion (on the legality of Trump’s actions) and he’s not going to talk about the underlying investigation,” said Stephen Ryan, a former federal prosecutor and congressional investigator now at the McDermott, Will & Emery law firm.

Still, Ryan said the testimony, and senators’ questions, would be historic. The closest comparison, he said, was the appearance 44 years ago of President Richard Nixon’s White House counsel John Dean, who, after being fired by Nixon, gave damning testimony in 1973 to the Senate Watergate Committee.

(Additional reporting by John Walcott; Editing by Yara Bayoumy and Peter Cooney)

Facebook launches features to connect U.S. users to elected officials

FILE PHOTO: A picture illustration shows a Facebook logo reflected in a person's eye, in Zenica, March 13, 2015. REUTERS/Dado Ruvic/Illustration/File Photo

By Dustin Volz

WASHINGTON (Reuters) – Facebook Inc <FB.O> announced a set of three new features on Wednesday intended to boost civic engagement among users in the United States on its platform by connecting them more easily with their elected representatives.

The new offerings come as the social media juggernaut has sought to rehabilitate its image as a credible source of information following a wave of criticism after last November’s presidential election that the company did too little to combat misleading or wholly fabricated political news stories during the campaign.

Among the features, Facebook will now allow users to turn on “Constituent Badges” to identify them as living in their elected officials’ district. The opt-in badge will be visible when a user comments on content shared by their federal, state and local representatives.

Facebook also announced “Constituent Insights,” which allows elected officials and other users to find local news stories that are popular in their district.

“District Targeting” creates a new preset audience selection that lets politicians’ pages target posts to people likely to be their constituents.

Facebook has continued to come under attack from prominent Democrats and some technology experts despite a raft of changes it has made in recent months that seek to help users consume more legitimate political news.

Hillary Clinton, who ran for president as a Democrat last year but lost to President Donald Trump, a Republican, said last week that Facebook was flooded with false information about her during the campaign and that people were understandably misled. She said she wanted Facebook to curate its network more aggressively.

(Reporting by Dustin Volz; Editing by Bill Trott)

White House, intel chiefs want to make digital spying law permanent

Director of National Intelligence Daniel Coats (2nd-R) testifies as he appears alongside acting FBI Director Andrew McCabe (L), Deputy Attorney General Rod Rosenstein (2nd-L) and National Security Agency Director Michael Rogers (R) at a Senate Intelligence Committee hearing on the Foreign Intelligence Surveillance Act (FISA) in Washington, U.S., June 7, 2017. REUTERS/Kevin Lamarque

By Dustin Volz

WASHINGTON (Reuters) – The White House and U.S. intelligence chiefs Wednesday backed making permanent a law that allows for the collection of digital communications of foreigners overseas, escalating a fight in Congress over privacy and security.

The law, enshrined in Section 702 of the Foreign Intelligence Surveillance Act, is due to expire on December 31 unless Congress votes to reauthorize it, but is considered vital by U.S. intelligence agencies.

Privacy advocates have criticized the law though for allowing the incidental collection of data belonging to millions of Americans without a search warrant.

The push to make the law permanent may lead to a contentious debate over renewal of Section 702 in Congress, where lawmakers in both parties are deeply divided over whether to adopt transparency and oversight reforms.

“We cannot allow adversaries abroad to cloak themselves in the legal protections we extend to Americans,” White House Homeland Security Adviser Tom Bossert wrote in an editorial published in the New York Times newspaper on Wednesday.

U.S. Director of National Intelligence Dan Coats, speaking on behalf of other intelligence agency leaders, also told the Senate Intelligence Committee panel on Wednesday that the statute should be made permanent, saying it was necessary to keep the United States safe from national security threats.

NSA Director Rogers added that the law had been vital to preventing terrorism in allied countries as well.

Fourteen Republican senators, including every Republican member of the Senate intelligence panel, introduced a bill on Tuesday that would make part of Section 702 permanent.

The statute, which grants the National Security Agency a considerable freedom in the collection of foreigners’ digital communications, normally comes with a “sunset” clause, meaning that roughly every five years lawmakers need to reconsider its impact on privacy and civil liberties.

‘SPY ON AMERICANS’

Intelligence Director Coats said it was not feasible for the NSA to provide an estimate of the number of Americans whose communications are ensnared incidentally under Section 702.

Coats and other officials had previously told Congress they would attempt to share an estimate publicly before the statute expires. A frustrated Democratic Senator Ron Wyden, who has asked for such an estimate for several years, said Coats “went back on a pledge.”

Privacy advocates criticized the push to make Section 702 permanent, arguing that regular reviews of the law were necessary to conduct appropriate oversight and prevent potential abuses.

“After months of criticizing the government for allegedly spying on his presidential campaign, President Trump is now hypocritically endorsing a bill that would make permanent the NSA authority that is used to spy on Americans without a warrant,” said Neema Singh Guliani, legislative counsel with the American Civil Liberties Union.

Disclosures by former NSA contractor Edward Snowden in 2013 revealed the sweeping nature of 702 surveillance, prompting outrage internationally and embarrassing some U.S. technology firms shown to be involved in a program known as Prism.

Last week, Facebook <FB.O>, Amazon <AMZN.O>, Alphabet Inc’s Google <GOOGL.O> sent a letter to Congress urging lawmakers to adopt several reforms to the law, including codifying the recent termination of a type of NSA surveillance that collected Americans’ communications with someone living overseas that merely mentioned a foreign intelligence target.

Making the law permanent without changes would preclude codifying that change.

Reuters reported in March that the Trump administration supported renewal of Section 702 without any changes, citing an unnamed White House official, but it was not clear at the time whether it wanted the law made permanent.

(This version of the story corrects paragraph 14 to add dropped words “embarrassing some U.S. technology firms involved in”)

(Reporting by Dustin Volz; Editing by Alden Bentley and Paul Simao)

Trump pushes infrastructure plan as Russia probe heats up

U.S. President Donald Trump announces his $1 trillion infrastructure plan to the crowd during a rally alongside the Ohio River at the Rivertown Marina in Cincinnati, Ohio, U.S. June 7, 2017. REUTERS/John Sommers II

By Jeff Mason

CINCINNATI, Ohio (Reuters) – President Donald Trump on Wednesday trumpeted plans for $1 trillion in U.S. infrastructure spending as he struggles to gain momentum for his economic agenda amid growing attention on the probe into alleged ties between his campaign and Russia.

“America wants to build,” Trump said. “There is no limit to what we can achieve. All it takes is a bold and daring vision and the will to make it happen.”

Speaking in Cincinnati, Ohio, Trump reviewed a proposal announced earlier this year to leverage $200 billion in his budget proposal into a $1 trillion of projects to privatize the air traffic control system, strengthen rural infrastructure and repair bridges, roads and waterways.

Trump said he would not allow the United States to become a “museum of former glory.” He spoke about backing large transformative projects but did not give specifics.

“We will construct incredible new monuments to American grit that inspire wonder for generations and generations,” he said.

Trump pointed to a government program that allows the private sector to tap into low-cost government loans called the Transportation Infrastructure Finance and Innovation Act as a way to leverage federal funds with state, local, and private sector funding.

Transportation Secretary Elaine Chao said at a Senate hearing on Wednesday that administration plans to unveil a detailed legislative proposal by the end of September.

Democrats want $1 trillion in new federal spending and proposed a plan that includes $200 billion in roads and bridges,$20 billion in expanding broadband Internet access, $110 billion for water systems and $75 billion for schools.

Senate Democratic Leader Charles Schumer said the Trump budget unveiled in May cuts $206 billion in infrastructure spending across several departments, including $96 billion in planned highway trust fund spending.

The Ohio visit was the second leg of a week-long White House focus on infrastructure. On Monday the president proposed spinning off air traffic control from the Federal Aviation Administration.

The proposal to privatize air traffic control has run into skepticism and opposition from Democratic senators and some Republicans.

The infrastructure push comes as the White House seeks to refocus attention on core promises to boost jobs and the economy that Trump made last year during his presidential campaign.

Those pledges have been eclipsed by the furor over Russia’s alleged meddling in the election. That drama will come to a head on Thursday when former Federal Bureau of Investigation Director James Comey, who was leading the Russia probe until Trump fired him last month, testifies before a Senate panel.

(Reporting by Jeff Mason in Cincinnati, Ohio Writing by David Shepardson in Washington; Editing by Chris Sanders and Cynthia Osterman)