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12/26/2004:

"As Nuclear Secrets Emerge in Khan Inquiry, More Are Suspected"

...Nearly a year after Dr. Khan's arrest, secrets of his nuclear black market continue to uncoil, revealing a vast global enterprise. But the inquiry has been hampered by discord between the Bush administration and the nuclear watchdog, and by Washington's concern that if it pushes too hard for access to Dr. Khan, a national hero in Pakistan, it could destabilize an ally. As a result, much of the urgency has been sapped from the investigation, helping keep hidden the full dimensions of the activities of Dr. Khan and his associates.

There is no shortage of tantalizing leads. American intelligence officials and the I.A.E.A., working separately, are still untangling Dr. Khan's travels in the years before his arrest. Investigators said he visited 18 countries, including Syria, Saudi Arabia and Egypt, on what they believed were business trips, either to buy materials like uranium ore or sell atomic goods.

In Dubai, they have scoured one of the network's front companies, finding traces of radioactive material as well as phone records showing contact with Saudi Arabia. Having tracked the network operations to Malaysia, Europe and the Middle East, investigators recently uncovered an outpost in South Africa, where they seized 11 crates of equipment for enriching uranium.

The breadth of the operation was particularly surprising to some American intelligence officials because they had had Dr. Khan under surveillance for nearly three decades, since he began assembling components for Pakistan's bomb, but apparently missed crucial transactions with countries like Iran and North Korea.

In fact, officials were so confident they had accurately taken his measure, that twice - once in the late 1970's and again in the 1980's - the Central Intelligence Agency persuaded Dutch intelligence agents not to arrest Dr. Khan because they wanted to follow his trail, according to a senior European diplomat and a former Congressional official who had access to intelligence information. The C.I.A. declined to comment.

"We knew a lot," said a nuclear intelligence official, "but we didn't realize the size of his universe."

President Bush boasts that the Khan network has been dismantled. But there is evidence that parts of it live on, as do investigations in Washington and Vienna, where the I.A.E.A. is based.

Cooperation between the United Nations atomic agency and the United States has trickled to a near halt, particularly as the Bush administration tries to unseat the I.A.E.A. director general, Mohamed ElBaradei, who did not support the White House's prewar intelligence assessments on Iraq.
Full Article: nytimes.com