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10:00 AM ET, Wednesday, October 4, 2023

The Cipher Brief curates open source information from around the world that impacts national security. Here's a look at today's headlines, broken down by region of the world:  

THE TOP STORIES:

McCarthy Ousted as House Speaker.  Rep. Kevin McCarthy (R-CA) was ousted on Tuesday as speaker of the U.S. House of Representatives after a nine month tenure marked by Republican infighting.  In a 216-210 vote, eight Republicans joined 208 Democrats in making McCarthy the first House speaker ever to be removed.  Several Republicans said they plan to meet next Tuesday to discuss possible successors, and a vote is planned for next Wednesday.  Rep. Patrick Henry (R-NC) became interim speaker.  The Republican rebellion against McCarthy, led by Rep. Matt Gaetz (R-FL), came after McCarthy turned to Democrats last week to help pass a stopgap bill to avoid a government shutdown.  Before the speakership vote, some Republicans urged their colleagues to stick with McCarthy.  Rep. Brian Fitzpatrick (R-PA) warned that ousting McCarthy could lead to a government shutdown in November and put aid to Ukraine at risk.  Following the vote, Republicans said they would cancel any votes on legislation scheduled for the rest of the week.  Reuters The Hill Wall Street Journal Washington Post 

Philippine Fishermen Killed in South China Sea in Ramming Incident.  The Philippine Coast Guard reported an unidentified foreign commercial vessel struck a Filipino fishing boat in the South China Sea on Monday, killing three fishermen.  President Ferdinand Marcos Jr. said the incident is being investigated.  According to the Coast Guard, the incident occurred 85 nautical miles northwest of the disputed Scarborough Shoal.  The Coast Guard reported later that based on sea traffic at the time of the incident and the account of the 11 fishermen who survived, it appears that a Marshall Islands-flagged crude oil tanker may have been involved.  The Coast Guard said bad weather and darkness led to the fishing boat crew’s failure to detect the oncoming ship.  Yokosuka Council on Asia-Pacific Studies Executive Director John Bradford, a former U.S. Navy officer, said that with the high density of traffic in the disputed waters, the risk of collision is increased by vessels that fail to operate in accordance with the International Regulations for Preventing Collisions at Sea.  Bradford said “improved maritime governance” is needed to avoid such incidents in the region.  Al Jazeera Bloomberg Reuters South China Morning Post 

North Korea Vows Response to U.S. Labeling it as 'Persistent Threat'.  A North Korean Defense Ministry spokesperson criticized a U.S. Defense Department report calling North Korea a “persistent” threat because of its weapons of mass destruction.  Last week, the Pentagon released the unclassified version of its 2023 Strategy for Countering Weapons of Mass Destruction, which included North Korea in a list of “principal WMD challenges” due to its nuclear and ballistic missile programs.  The North Korean spokesperson argued that the U.S. is increasing the nuclear threat, citing joint U.S.-South Korean military exercises and the recent visit by a U.S. nuclear submarine to South Korea.  The spokesperson added that Pyongyang will respond to any U.S. aggression with “the most overwhelming and sustained response strategy.”  South Korea’s Defense Ministry said today that any North Korean use of nuclear weapons would result in the end of Kim Jong Un’s regime.  Associated Press Reuters 

Taiwan Warns of China’s ‘Very Diversified’ Election Interference Methods.  Taiwanese National Security Bureau Director-General Tsai Ming-yen said on Wednesday that China has “very diversified” ways of interfering in Taiwan’s upcoming elections in January.  Tsai told a parliamentary committee that China’s methods could include military pressure, economic coercion, and disseminating fake news.  Tsai added that his agency is “paying special attention” to the possibility of China working with opinion poll and public relations companies to manipulate public opinion polls.  He did not name potential companies Beijing could cooperate with.  Tsai’s comments are in keeping with the warnings Taiwanese officials typically issue regarding possible interference from Beijing in the island’s elections.  Reuters


THE UKRAINE UPDATE:

Russia Claims it Downed Ukrainian Missile Off Crimea Coast, Downed Drones.  Russia’s Defense Ministry claimed Tuesday that Russian air defense systems downed a Ukrainian missile over the northwestern Black Sea off the Crimean coast.  The ministry said a Ukrainian Neptune missile was downed.  Meanwhile, Mikhail Razvozhayev, the Russian-appointed governor of Sevastopol, reported a drone was downed over the port.  He did not report any casualties but said debris from the drone fell on an apartment building.  Ukraine has recently increased its attacks against occupied Crimea.  Elsewhere, Russia’s Defense Ministry claimed Russian air defenses shot down 31 Ukrainian drones over the border regions of Belgorod, Bryansk and Kursk overnight.  Reuters CNN CNN

Russia Claims Air Defenses Destroy 31 Ukrainian Drones Over Border Regions.  Russia’s Defense Ministry claimed the Russian air force prevented a Ukrainian attempt to “infiltrate” Crimea in a speed boat and three jet skis.  Russian state media later aired footage purportedly showing a Ukrainian “saboteur” captured in the raid.  Russia’s FSB security service said 16 people were involved in the raid and intended to put up a flag to show Ukraine’s entry into Crimea.  Ukrainian Defense Intelligence (DI) released footage purporting to show the amphibious raid on the Crimean coast.  A spokesperson for DI acknowledged Ukrainian losses in the sabotage and reconnaissance operation but said the Russian side “suffered significant losses.”  The date and time of the attack were not made clear.  CNN

UN Report Cites New Russian Executions of Ukrainian Prisoners.  The UN human rights office issued a report on Wednesday verified six more Russian executions of Ukrainian prisoners of war in the year after Moscow’s invasion of Ukraine.  The new killings add to 15 Russian executions documented in a previous report in March.  That report also cited 25 executions of Russian prisoners by Ukrainian forces, but the latest report cited no additional executions by the Ukrainians.  The UN also said that because Russia has denied investigators access to prison camps to inspect conditions there, its report relied on information provided by 56 former Ukrainian prisoners released in exchanges, 51 of whom say they were held in terrible conditions, tortured, or mistreated. The report said that while the UN has received reports of minor improvements in the Russian camps, such as more and better food, the overall conditions “remained dire.” The report also said the Ukrainian government has worked to improve conditions for its Russian prisoners.  Rights groups say both Ukraine and Russia have abused detainees, but Russia has largely committed worse abuses and has failed to cooperate with investigators.  New York Times

Ukraine Seizes Almost $5.5 Million in Assets from Russian Defense Company.  The Security Service of Ukraine (SBU) announced Tuesday that Kyiv has seized almost $5.5 million in assets from the Russian defense company Rostvertol PJSC.  SBU says that Rostvertol PJSC, a helicopter manufacturing company in the city of Rostov-on-Don, is a key enterprise in Russia’s military-industrial complex.  The agency added that the seized assets, including “a batch of components for combat helicopter control systems,” were produced by a plant in the western Ukrainian city of Lviv under a 2011 contract.  The Russian company sought to receive the components in 2014, but SBU blocked the transfer after Russia’s annexation of Crimea and occupation of areas in the Donbas region.  The SBU said that a Ukrainian anti-corruption court upheld a claim from the Ministry of Justice to give the assets to Ukraine.  The confiscated components will be transferred to the Ukrainian Armed Forces. Rostvertol PJSC — which produces Mi-26 series commercial and military helicopters, as well as Mi-35M and Mi-28NE Night Hunter military models — did not immediately respond to a request for comment from CNNCNN

Senior Ukrainian Official Criticizes ‘Western Conservative Elites’ for Reluctance on Ukraine Aid.  Mykhailo Podolyak, advisor to the head of the Ukrainian president’s office, on Wednesday criticized “Western conservative elites” for suggesting that military aid for Ukraine should be suspended.  He questioned their motives, asking why they are “so insistently against… destroying the Russian army, which has been terrifying democracies for decades.”  He did not name specific officials, though his comments came after Congress omitted new Ukraine funding from a temporary spending measure and after the ousting of U.S. House Speaker Kevin McCarthy.  Meanwhile, Ukraine’s Ambassador to Washington Oksana Markarova said her embassy is engaging with the “vast majority” of likely candidates to be the next House speaker and is more widely continuing work with Congress on securing further assistance for Ukraine.  CNN

Officials Caution Ukraine’s Allies Running Out of Ammunition.  Both NATO and UK officials have cautioned that production of ammunition needs to increase to maintain aid for Ukraine, as stockpiles have begun to reach “the bottom of the barrel.”  The chair of the NATO Military Committee, Admiral Rob Bauer, said on Tuesday at the Warsaw Security Forum that Western defense industry must “ramp up production in a much higher tempo" and noted that while allies increased budgets before Moscow’s invasion of Ukraine, production capacity did not increase to fill stockpiles, leading to strains on stocks and even high prices before the start of the war.  James Heappey, U.K. Minister of State for the Armed Forces, echoed that the “just-in-time” scheme is not functional “when you need to be ready for the fight tomorrow.”  He also emphasized that assistance for Ukraine cannot cease “just because our stockpiles are looking a bit thin.”  CNN BBC  

Russian Jet Likely Downed Over Key Southern Ukrainian Town.  The U.K. Ministry of Defense reports that Russian air defenses highly likely downed a Russian Su-35S FLANKER M multi-role combat jet over Tokmak, behind the frontline in southern Ukraine, on September 28.  The ministry said this is likely the fifth loss of a Su-35S, Russia’s most advanced combat jet that is widely in service.  Tokmak is a critical Russian-occupied rail hub that often hosts Russian headquarters commanding forces on the southern front.  Ukraine’s counteroffensive is gradually pushing towards the town, which is likely protected with short and medium range air defense systems that are likely operating at high readiness to counter Ukrainian deep strikes.  UK Ministry of Defense X 

THE CYBER AND TECH RUNDOWN:

Chinese Defense Official Favors ‘Holistic’ Approach to Military Technology Development.  A senior Chinese defense technology researcher is urging a shift in China’s approach to developing and deploying military technologies, saying the People’s Liberation Army (PLA) should follow an “holistic approach” to weapons research.  Writing in the Communist Party journal, Study Times, Wang Xintian, deputy political commissar of the National Innovation Institute of Defense Technology, proposed that rather than follow the traditional “explore-develop-produce-deploy” sequence, research institutes should conduct research, trials and even deployments in parallel.   This alternative approach, Wang wrote, would be valuable in addressing issues connected with long development processes for innovative military technologies along with the large number of stakeholders involved and demands that the process be highly efficient.  Wang said the customary equipment-oriented research philosophy no longer meets PLA modernization requirements.  Wang noted that smart technologies have created new research challenges by greatly shortening and accelerating weapons development cycles.  He wrote that a holistic approach, which was first implemented by China’s missile program innovator Qian Xuesen, had been successful in other scientific sectors, including crewed space missions and lunar exploration.  The new development cycle, Wang said, “integrates the requirements of practical needs, science, engineering, technology, and organization” and guarantees efficient implementation of all types of research, engineering and technology.”  South China Morning Post

Senior Intelligence Advisor, Others Urge System Hardening Against Quantum Threats.  A senior U.S. intelligence official told the Quantum World Congress conference in Washington this week that “all systems need to be hardened,” a reference to steps that organizations need to take to prepare for quantum computers capable of cracking current encryption algorithms with ease.  Stacey Dixon, Principal Deputy Director of National Intelligence, told the conference that investments are needed in both aspects of quantum computing – defenses against its potential threat as a codebreaker, and advancing its technological and economic benefits for the United States.  James Kushmerick director of a National Institute of Standards and Technology (NIST) laboratory, said the sooner “quantum-resistant” encryption standards are issued, “the better off we’ll be whenever a cryptographically relevant quantum computer is developed.”  Even though such a quantum computer does not yet exist, experts are concerned about the “collect now, decrypt later” tactic employed by intelligence agencies and others.  It refers to huge, long-term repositories of data that await the advent of encryption-breaking quantum computers to be exploited.  Kushmerick noted that “there’s a long tail of how valuable information may be if it’s collected now and decrypted later.”  Neeraj Paliwal, general manager at Rambus, a company developing quantum-resistant chips, told conference attendees that the good news is you don’t need a quantum computer to stop a quantum computer, just better encryption algorithms.  New quantum-resistant algorithms should be able to run on today’s computers, although many will need to be upgraded or replaced.  Rebecca Krauthamer, co-founder of QuSecure, which develops quantum-resistant software, warned that “you can’t say anything is ‘quantum-proof’ because everything is always changing…. It’s going to evolve in ways we can’t foresee.”  NIST issued draft standards for the first three algorithms in September and has invited comments until November 22 with plans to finalize them next year.   At that time, Kushmerick said, it will be up to “industry [to] deploy into a product.”  In the meantime, industry, government, and other organizations should inventory data and assets and institute policies for data retention.  Kaniah Konkoly-Thege, head of government affairs at the Quantinuum computing firm, said that in addition to those basic steps, aggressive testing of systems and networks needs to take place in order to “break your system and figure out what doesn’t work.”  BreakingDefense

Russia Plans VPN Blockade Next Year To Prevent Access to Western Social Media.  A Russian legislator says the country’s communications regulator will block virtual private network (VPN) operations beginning March 1 of next year.  VPN services have surged in Russia as Moscow restricted access to Western social media following Russia’s invasion of Ukraine.  Russian Senator Artem Sheikin said the Roskomnadzor watchdog would take the action against “VPN services providing access to sites banned in Russia.”  Sheikin singled out Meta Platforms, which owns Facebook, Instagram, and WhatsApp, as a target of the VPN restriction.  “It is especially important,” he said, “to restrict citizens' access to the products of Meta, which is recognized as an extremist organization."  Reuters

SiegedSec Hacking Group Claims Leak of 3,000 Stolen NATO Documents.  The SiegedSec hacking group has announced a leak of 3,000 files that it claims were stolen from NATO.  The hackers posted screenshots to their Telegram account on Monday of some of the documents as well as descriptions of the file contents.  The group wrote, “we tend to have fun breaching intergovernmental alliances between large nations.”  The data reportedly originated in the “NATO Learning Management System,” including files from portals labeled “Lessons Learned Portal,” the “Logistics Network Portal,” and the “Investment Division Portal.”  Many of the reports bear markings indicating their content is unclassified but intended “for official use only” among NATO members and its partners.  Some of the content appears to be sensitive, although the leak may also contain information already publicly available.  NATO provided the Daily Dot with a statement that the alliance faces “persistent cyber threats and takes cyber security seriously.”  The statement went on to say, “additional cyber security measures have been put in place. There has been no impact on NATO missions, operations, and military deployments.” DailyDot

TSMC’s Japan Chip Plant Development Outpaces Counterpart U.S. Facility.  The Taiwan chip manufacturer, TSMC, will begin equipment installation at a new chip plant in Japan this month, indicating that the Japan-based facility is outpacing the TSMC plant under development in Arizona.  TSMC has informed suppliers that installation of chip production tools will be completed in the first quarter of 2024.  TSMC has sent hundreds of support staff to the site in Kumamoto in southwestern Japan, a complement that will soon be joined by hundreds more from TSMC suppliers.  TSMC officials say the $8 billion plant is on track to begin production by the end of next year and may possibly reach operational status ahead of schedule.  The Kumamoto plant will begin with 28-nm and 22-nm production technology, which can produce chips used in everything from smartphones to cars.  Meanwhile, the TSMC facility in Arizona has encountered delays, with production now not expected until 2025.  TSMC noted the difference between the Japanese and U.S. facilities is, in part, due to the scale of the projects.  The company told Nikkei that "it is important to recognize that TSMC's Arizona fab, the fab it is building in Kumamoto, Japan, and the fab it is going to build in Germany are inherently incomparable due to their differences in location, setup and scope.”  Some industry observers, however, say that Japan has better chip industry infrastructure, and that government support has been more timely.  Mario Morales, global vice president at the U.S. market intelligence firm IDC, noted that “Japanese industry has a very strong ecosystem in materials, gas, substrates, and wafers. Having access to that is very strategic."  Morales also pointed out that the Japanese government "has streamlined regulations that enable TSMC to bring up its supply chain and work faster."  Nikkei Asia

ELSEWHERE IN THE WORLD:

Turkey Performs Air Strike Operation in Regions of Northern Iraq.  Turkey’s Defense Ministry said that its air forces conducted new air strikes in northern Iraq on Tuesday, destroying 16 targets of the Kurdistan Workers Party (PKK).  The operations took place in the Metina, Gara, Hakurk, Qandil and Asos regions of northern Iraq.  The ministry added that every measure was taken to avoid harm to civilians and the environment.  PKK claimed responsibility for a Sunday attack by two individuals who detonated a bomb in front of government buildings in Ankara, wounding two police officers and killing both perpetrators.  Reuters Al Jazeera

India’s Foreign Intelligence Agency Has Had Long Presence in West.  Canada’s claim that Indian government agents were involved in the killing of Sikh separatist leader Hardeep Singh Nijjar has brought more attention to India’s Research and Analysis Wing (RAW), the country’s foreign intelligence agency.  India’s South Asian neighbors say the agency is active in the region, but officials told Reuters that RAW has also been expanding its reach in Western countries since the 2008 Mumbai attacks.  Officials highlighted India’s failure to extradite a U.S. citizen charged with scouting locations for the attacks as a motivation for the agency to increase its presence in the West.  Officials added that RAW has been emboldened under Prime Minister Narendra Modi as he bolsters Indian defense capabilities.  However, they denied that the agency conducts targeted killings, saying that it has no mandate for such operations.  Officials said the dispute between Canada and India over the Nijjar killing may make it harder for Western countries to trust RAW in the short term.  Modi’s office and RAW chief Ravi Sinha did not respond to requests for comment.  Reuters

Maldives President-Elect Says Foreign Military Forces Must Leave.  Maldives President-elect Mohamed Muizzu on Monday said that “foreign soldiers” cannot stay in the country, suggesting that he will pursue the withdrawal of a small Indian military unit in the Maldives.  Muizzu is largely seen as pro-China and his party has viewed India’s influence in the Maldives as a threat to the archipelago’s sovereignty.  Muizzu has accused New Delhi of seeking to establish a permanent military base in the country.  India denies that claim and says it’s helping build a naval harbor for Maldivian forces who will be trained by India’s military.  A senior Indian government official said New Delhi will “wait and watch” Muizzu’s policies and urged him to cooperate and maintain strong relations.  Reuters South China Morning Post

Pakistan Threatens Expulsion of Illegal Afghan Immigrants.  Pakistan is ordering all illegal immigrants, including 1.73 Afghan nationals, to leave by November 1 or face expulsion.  Pakistan’s Interior Minister Sarfraz Bugti justified the order by alleging that Afghan nationals committed 14 out of 24 suicide bombings in Pakistan this year.  The move came after two suicide bombings on Friday that killed 57 people.  Bugti said one of the attacks was carried out by an Afghan national.  A spokesperson for the Taliban administration in Afghanistan called the crackdown “unacceptable,” asserting that Afghan refugees are not security threats to Pakistan.  Tensions have been high between Afghanistan and Pakistan since the Taliban returned to power two years ago.  There have been frequent border clashes between the two countries and Islamabad continues to accuse the Afghan Taliban of harboring militants who attack Pakistan, which the Taliban deny.  Al Jazeera Associated Press Reuters 

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Morning Report for Wednesday, October 4, 2023

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