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* Informer was British citizen – sources

* Details of operation disclosed in U.S. media

* Experts say disclosure may harm future operations

By William Maclean

LONDON, May 11 (Reuters) – Counter-terrorism experts

expressed concern on Friday over U.S. leaks about an undercover

operation that foiled a suicide bomb plot, saying its exposure

may deter agents from volunteering for the risky job of

infiltrating al Qaeda’s network.

While electronic methods are increasingly used in espionage

operations of all kinds, human intelligence remains crucial

because al Qaeda’s best operatives try to avoid the use of any

electronic communications to minimise the chance of detection.

British intelligence played a central role in the operation

targeting al Qaeda’s Yemeni offshoot, counter-terrorism sources

told Reuters, by recruiting the informant who obtained the bomb

and handed it to Western intelligence officers. [IDn:nL1E8GAG0J]

The undercover operative in the plot linked to Al Qaeda in

the Arabian Peninsula, or AQAP, was a British citizen, possibly

of Saudi origin, the sources said on condition of anonymity. The

informant was working in cooperation with Britain’s two

principal spy agencies.

The operation appears to have been a joint venture between

the British, Saudi Arabian and U.S. intelligence services, some

analysts say, and its exposure in the U.S. media has caused

widespread concern in the U.S. intelligence community.

The Saudis and British appear to be concerned too.

“The Saudis are not happy with the leaking of this

information,” said Mustafa Alani, a security analyst with good

contacts among Gulf Arab governments.

“It is potentially harmful for future operations. And it is

the Saudis who have the agents on the ground to get these things

done.”

A spokesman for Prime Minister David Cameron declined to

discuss the matter, but said: “Clearly we think that sensitive

information should be protected.”

Nigel Inkster, a former assistant chief of Britain’s Secret

Intelligence Service (SIS), said in a Twitter message: “The

revelations about the British agent in AQ (al Qaeda) remind us

that Beltway leaking is a major security threat.”

Patrick Mercer, a British Conservative Party lawmaker and a

specialist in security matters, said: “If this is not a

deliberate disclosure done for an operational purpose, then it

is a shocking example of a leak posing risks to highly sensitive

and important work.”

The operation appears to have been a notable

counter-terrorism success for the United States and its allies,

with the adroit use of an agent inside al Qaeda ranks likely to

provide particular satisfaction to Washington two and a half

years after the second most deadly attack on the Central

Intelligence Agency (CIA).

On Dec. 30 2009, a Jordanian double agent, Humam Khalil abu

Mulal al-Balawi, blew himself up inside Forward Operating Base

Chapman, a well-fortified U.S. compound in Khost province in

southeast Afghanistan, killing seven CIA officers and a

Jordanian intelligence officer.

The attack showed militants were keener to kill Western

spies than to infiltrate their networks, underlining the

daunting challenge for Western services seeking to plant an

informant among al Qaeda’s senior ranks.

And yet the disclosure of the latest operation may make it

less likely that others will come forward to undertake such

undercover work against al Qaeda in future, analysts say.

INTERNAL REVIEW

In the latest case, Alani said AQAP had been duped into

recruiting the informant because, among other things, he held a

Western passport and appeared to have a militant cast of mind,

making it easier for him to be allowed to board a U.S.-bound

plane without undue suspicion.

But by definition individuals who have the temperament,

background and training to infiltrate the militant network are

few.

This is not the first time such leaks have disrupted

operations involving British and Saudi intelligence.

The most notable case where U.S. leaks potentially

jeopardised a British investigation was that of an al Qaeda plot

to blow up financial targets in the United States and carry out

“dirty bomb” attacks in Britain.

The eight-man cell, now serving long jail terms, were

arrested in daylight swoops by British police in 2004 after U.S.

officials revealed details about a Pakistani agent who was

involved in a sting operation.

The men had been under police surveillance and the release

of the Pakistan agent’s name in U.S. newspapers prompted the

British to act faster than they wanted.

Security analysts say British police were also forced to

arrest suspects believed to be planning to down transatlantic

airliners in 2006 earlier than they had wanted because U.S.

security agencies were putting them under pressure.

A lack of evidence meant the suspects were not initially

convicted of being involved in planning to target airliners and

led to a number of re-trials.

In a speech in 2010, SIS chief John Sawers said: “Agents

take serious risks and make sacrifices to help our country. In

return, we give them a solemn pledge: that we shall keep their

role secret.”

Secret organisations needed to stay secret, he said, even if

they occasionally presented “a public face”.

“Agents take risks. They will not work with SIS, will not

pass us the secrets they hold, unless they can trust us not to

expose them. Foreign partners need to have certainty that what

they tell us will remain secret – not just most of the time, but

always.”

The director of U.S. National Intelligence has opened an

“internal review” of U.S. intelligence agencies to determine

whether there were leaks of classified information related to

the underwear bomb operation.

Separately, the FBI is conducting a separate criminal

investigation into leaks, a law enforcement official said in

Washington.

(Additional reporting by Michael Holden and Mark Hosenball in

Washington; Editing by Andrew Osborn)