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SPECIAL ADVERTISING SECTION 図 A LTA Readyt0 shake up the 〇旧 c 〇 ntlnent Malta EU Presidency benefit economically by show- casing that the EU's larger promises international competitors have a different agenda aimed t0 refocus growth cycle compared t0 the the European Project and smaller member states and showcase economic growth suggesting more flexibility in reg し llation tO stimulate Other The smallest member state economies as well. 0f the EU began its six-month term as president 0f the Union Finance and Economy this January, faced with chal- The Bank of Valletta is the lenges they plan t0 combat largest banl< in MaIta and is with their recent economic and led by CEO Mario Mallia, who policy-driven improvements. says that the current ICT infra- MaIta is the second-best per- structure iS mal<ing more OP- forming economy amongst itS portunities for 、、 businesses at larger peers and an advocate every stage 0f their life cycle. " 0f the EU, having received Mr. MaIIia explains that, 。 75 % funding and achieved SLlCCeSS 0f households are connected at applying EU directives. The ing the United l<ingdom's exit full membership. One cannot t0 the internet" and the "good nation iS comprised Of almost from the organization. 、、 Brexit' have access tO the single mar- competition in the communi- 500,000 inhabitants, and is has given a name and a face tO ket without having freedom 0f cations sector" contributes tO described as the essence of the rising anti-EU sentiment the improvement Of services. movement," Mr,. Borg says. Mediterranean culture, due to amongst many European citi- Given its location, Malta Apart from the tax mea- its location and rich history zens and caused doubt about has experience with migration sures and attractive Mediter- that has made it an e 幵 ective the future success of the orga- issues and iS an advocate for ranean lifestyle that the island participant in the region over nization without its strongest providing asylum legally and offers, Mr. Mallia says that the the years. member. Globalization assures progressively SO that economic team at BOV want to be seen 、、 We want to send the that the U. l<. will have to ne- benefits can be seen for both as 、、 business enablers," hop- right message tO our citizens, gotiate terms with the 0ther member states and refugees. ing t0 draw the right serious we want to address the defi- member states, but the poten- MaIta's number one priority on investors intO their economy. cit of the citizens' faith in the tial for dispute will come if the the agenda is migration. lt will This is an outlook adopted by European pro 」 ect and explain country is granted t00 much SO fOCLlS on security, SOCial many in the financial realm tO them why remaining in the access without having t0 f01- inclusion, the Single Market, under the belief that progres- Union, why re-launching this IOW the rest Of the require- the neighborhood policy, and sive business regulations will project is the future Of our ments. the maritime sector. continue tO aid growth. continent. " says lan Borg, Par- Malta could perhaps be Prime Minister Joseph Other institutions, like Fi- liamentary Secretary for the best suited t0 begin these Muscat has said that while nanceMalta, have a 0 worked EU Presidency 2017 and EU talks since their relationship MaIta leads, what is important t0 make that dream a reality. Funds. with the U.I<. has flourished is that "a great deal Of energy FinanceMaIta was set up to Malta will be forced to due to historicalties and the must be put not only on listen- help promote the island as an struggle with media cover- English language. 、℃ f course, ing tO people, but a 0 acting lnternational Financial Centre age 0f their agenda due tO the the negotiations will not give on people's concerns. " Malta's and according tO chairman looming negotiations involv- the U.I<. a better dealthan the leadership could position it tO l<enneth Farrugia. Malta has Joseph Muscat, Prirne Minister 0f MaIta (Credit: Partit Laburista MaIta) your financial services provider in MaIta ー At Bank of VaIletta we aspire to exceed you 「ーーー り y ー O 賃 0 ng a trusted genuine and truly caring service. your success iS 0 リ「 goal CORPORATE FINANCE WEALTH MANAGEMENT —PAYMENT-SOLU Bank Of \/alletta p 」 . c. is licensed tO conduct investment services Services Authority. lssued by Bank Of Vafletta p. l.c. , 5 TriqSan2akkarija, ll-BeltVallettaVLT 118 BOV BankofValletta + 356 2131 2020 ー bov.com

ln the aftermath Ofthe 2008 financial crisis, much Ofthe country was enraged because not a single Wall Street hotshot—the guys who agent" 0fthe company's shareholders: "ln a free-en- He then de scribed the concept of the executive as and unadulterated socialism. anyone else t00k them seriously—preaching pure reformers. ln fact they are—or would be if they or may be the catchwords of the contemporary crop of crlmlnation, avoiding pollution and whatever else sibilities for providing employment, eliminating dis- a SOCial consclence' and takes senously itS respon- promoting desirable social' ends, that business has is not concerned merely' with profit but also with ing free enterprise when they declaim that business snide. 。 [Businessmen] believe that they are defend- subversive tO the capitalist system. His tone was Frie dman claime d that such exe cutive s we re 。 highly CEO was one with an enlightened social conscience, the Harvard Business School) that the best type of tury view (and that of the most influential faculty at ness ls tO lncrease lts profits. " Flouting the midcen- Maga titled "The social Responsibility 0f Busi- Friedman published an essay in The N ビル物液 Times ln 1970 , NOb el Prize-mnnmg e conomist Milton credibility. But that's getting ahead ofthe story. school a lot ofmoney and (for a few ye ars) intellectual making money. And ⅲ the 1980S , Jensen brought the a better place, it's Just posturing. What it's about is vard Business S chool talks about making the world ure, for starters, but the other reason is that when Har- ugly one. SO why does he still have a j0 He has ten- at HBS—but the damage is done, and his legacy is an message he SOld everyone on in the 1980S ーー not even spent the bulk 0f his career. Few still believe ⅲ the professor at Harvard Business SchOOl, where he has That brings us tO Michael Jensen, a tenured finance financialcrisis could happen in the first place. intelle ctual foundation up on which a market- driven to be made that the fault lies with those who laid the been made t0 take the perp walk, there's also a case While there are many financiers who could have Ot us intO the mess—was rosecuted. When Joel Bakan interviewed Friedman for his 2005 social goal—are, Friedman said, actmg immorally. moral—with an eye tO the envlronment or some Other Execufives WhO act in ways most Ofus would consider lt was a remarkable intellectual sleight of hand. nay, for capitalism itself.. such naive notions for the good Of the country— done, he was argulng, and it was time tO throw 0 伍 their good nature get in the way 0f getting the j0b erwise—to anyone but the shareholder. They d let people from their obligations—contractual or Oth- Friedman was suggesting the release of those also cheaper. by products from Japan that weren't just better but talists and public opinion, all while being besieged the 1970S , hectored by employees, environmen- the beleaguered CEO of a major American firm in was on the verge Of a nervous breakdown. lmagine argued (shareholders) but t0 a managerial class that argument not Just tO those in whose interests he the United States—Friedman made a compelling Of profit is "wicked" has never been prevalent" in well as its exaggerations—the idea that the pursuit Setting aside the hysterical tone Of the above, as the iron first Of Government bureaucrats. developed, 0fthe pontificating executives; it will be will not be the social consclences, however highly adopted, the external forces that curb the market and controlled by external forces. Once this view IS profits is wicked and immoral and must be curbed the already t00 prevalent view that the pursuit of kudos in the short run. But it helps tO strengthen responsibility, ” Friedman wrote, may gain them Krugman. [Speeches] by businessmen on social ics, you pretty much have tO dO so—just ask paul ist stances. If you want tO get noticed in econom- Friedman didn't shy away from taking alarm- forming t0 the basic rules ofthe society. will be to make as much money as possible while con- terprise, pnvate-property sys- tem, a corporate executlve IS an employee 0f the owners 0f the business. He has direct respon- sibility t0 his employers. That re sponsibility is tO conduct the business ln accordance With their desires, which generally IFYOU WANTTO GET NOT ℃ ED ECONOMICS, YOU PRETTYMUCH HAVET 〇 TAKEALARMISTSTANCES. NEWSWEEK 36 APR 比 14 , 2017 book, The Co ora な : The ル olog 記 Pu リな Pr 知れ d PO ル , the economist repe ate d the point he'd made nearly 40 years before, but with a twist. ln Friedman's V1ew, hypocnsy iS virtuous When it serves the bottom line, ” Bakan observed,

SPECIAL ADVERTISING SECTION become a country that 、、 has shifted its orientation towards regional business, particularly the EU context, but a 0 inter- national business. " T0day. the nation attracts foreign direct investments from countries outside 0f Europe. As a result of the economic growth, companies like Was- teServ, have a responsibil- ity t0 operate as efficiently as possible. Exploring the pos- sibility Of converting waste tO energy would help manage the environment Of the island and create more jobs for both skilled and unskilled workers. servicing cutting-edge indus- help stabilize the country dur- The company's tagline, ℃ re- tries," says MIP chairman ing the Brexit, regardless Of ating resources from waste' Tony Zahra. the country's relationship with suggests the mindset that PIaymobil is just one of the the IJ. l<. the group strives for, which is examples Mari0 Galea, CEO Of managing materials better t0 MaIta Enterprise, cites as a Tourism reduce overall COSt for a nec- company that 、、 came t0 Malta The Malta Tourism Authority as a product extension [ … ] be- works as the country's brand essary servlce. "Growth can be sustained, cause their parent company promoter and helps bOth the be it financialgrowth, industri- wanted tO set up a production, public and private sectors ad- growth or touristic growth. but t0day they basically live vocate for travel. Malta has If you manage your essentials on their own. " ln operation for been ranked the seventh most well. When I mean essentials, over 50 years, MaIta Enter- "touristic" nation in the world it is solid waste, water waste, prise has seen the internation- and is a frequent stop for electricity waste. Manage business model change over many cruise liners and vaca- your waste well, manage your time With internationalization. tioners hoping t0 soal< in the essentials well, and you have Companies from Sweden, the sun and cultural history that all that is required to sustain U. S. , the U.I<., Germany, ltaly, the island has to 0 幵 er. your growth. " says WasteServ and the MiddIe East operate Pa しⅱ Bugeja, CEO of MTA, chairman David Borg. in MaIta which means that, as has dealt with the many fac- Managing space with the Mr. GaIea says, "our exports to ets of the tourism industry growth 0f industry is the duty the EU are about 35 % , then in MaIta and is keeping the Of Malta lndustrial Parks we export t0 Asia around 200/o future in mind with new poli- (MIP). [ … ] and this is healthy, first 0f Cies. A new 、、 contribution" iS The MIP was created back all because you're dealing in tacked on tO overnight guests in 1964 when Malta became different currencies. " The di- in hotels, but at a low rate of independent from Great Brit- versity 0f Malta's economy "50 euro cents per person per ain. Since then the institution is seen as a positive that will night, maximum 5 eut"OS per has transpired tO manage 12 industrial estates in Malta and Gozo and hosts a number of prestigious brands like Play- mobil and ST Micro Electron- ics. MIP is worl<ing to 、、 turn our industrial hubs into ad- vanced manufacturing spaces 回回 MALTA MALTA GOZO COM 0 MORE TO SEE Mari0 MaIIia, CEO, Ban k of Vall etta Mario Galea, CEO, Malta Entet'prise MORE TO DO MORE TO REMEMBER MALTA IS MORE WWW.VISITMALTA.COM O る しク PRODUCED BY GLOBUS VISION Fatima Ruiz Moreno, RegionaI Director Marc JOIy, EditoriaI Director AyIin ParIa, Project Director SpeciaIthanks t0 Mr Anton BO President of Malta Chamber. MALTAENTERPRISE WWW. maltaenteprise.com

SPECIAL ADVERTISING SECTION Council fo 「 Science and Tech- ity between what we're d0ing nology (MCST), will continue and what the rest Of Eut ℃ pe is tO create innovative partner- dOing. ships with outside countries. MCST has been advising Gaming e g ove rn m e n ce e¯MaltÜG a m i n gA u t h 0 r- ity ・ s (MGA) portfolio includes and technology policy since 280 companies and around 1988 and helps manage aca- demic institutions that take 450 remote gaming licenses and, with innovative and part in multi-nationalresearch transparent policies, it has projects. 、、 We have been, even quicl<ly become an example in the conceptual stages, COI- for other jurisdictions. Ex- laborating with the Ministry for Education to ensure that ecutive chairman, Joseph what we are d0ing is still rel- Cuschieri says that opera- evant tO what the kids are tors, "come here tO oper- being taught at school," adds ate in Other jurisdictions SO stay" which is then intended tunities through an 、、 incubator" Dr. Jeffrey PuIIicino OrIand0, MaIta is basically their place for the 、、 Tourism Zone Foun- that supports entrepreneurial Executive Chairman of MCST of establishment. ” Malta is students on and 0 幵 campus. dation" that will be "managed The Malta College of the 、 'largestjurisdiction g10b- Prof. Alfred VelIa, the 81st Arts, Science and Technol- ally now" and is working t0 by the tax authorities, by the ogy (MCAST) SO offers hun- Rector 0f U M says that al- implement the "second gen- government, their procedures, though the university has 、、 not dreds Of vocational courses, eration 0f our legislation" t0 their systems, but the money formally been called t0 assist" designed tO help students at improve regulatory measures will not go into the govern- different ski 旧 evels. Malta has for the future. with the discussions Malta ment coffers. ″ The funds will no natural resources Other The gaming industry ac- be specifically fO 「 "sustainable will be leading with the EU presidency, there are 、、 in fact a than its people, which is why counts for 10-12 % of Malta's tourism projects," says Mr. number Of our academics ac- investing in education for the GDP and employs about 8,000 Bugeja, further securing the independent development 0f tually involved in discussions workforce iS tantamount tO people directly. The 15 % tax cap on salaries 0f highly quali- with relevant government the development 0f industry this sector. on the island. This concept has fied foreign professionals is agencies. " UM will be striv- ing tO maintain relationships helped with economic growth drawing more talent t0 the Education island as well as the corporate The University Of M ね (UM) With academic institutions in for Malta over the last several tax refu n d syste m th at m akes is the 0 y nationalinstitute in the U. l<. Aside from the conse- years and as Dr. SilviO de Bono, President 0f MCAST, says, the effective tax rate about the country and is dedicated quences 0f Brexit, Other edu- cational groups, like The Malta 、 There ・ s a complete permeabil- 5 % for companies. t0 developing business oppor- Joseph CllSChieri, Ex€2CLltive Chairtnan, MGA Paul Bugeja. CEO MaIta Tourism Authority ProudIy Sponso 「 ed By: mIP maltalndust 「 ial Parks Limited UNIVERSITY 0F MALTA WOSTESERV CREATING R 第 SO リ RC を S FROM WAS すを M CAST F1nanceMaIta Malta College Of Arts, Science & TechnoIogy E f f e c t i v e ー S e c u 「 e ー S k i Ⅱ e d MALTA GAMING Proudly C09 d as 0 wo 日 d - cla 0 課 0 日 ty in te r ms 0 f れ 0V0d6 ; ー 46 朝ト五 a 五 ~ d 。 di 9 e れ ce. T + 3562546 9000 E info.mga@mga.0「g.mt Wwww.mga.0「g.mt

十 IVY DRIP: "The most powerful man at HBS in the early 1990S was MichaeI 」 ense ル ... Those students were all going to WaII Street, and WaII Street firms were all sending money back to HBS. " that tippe mvestigators 0 圧 to LeV1ne. A num er 0 HBS graduates were ensnared in the ensuing inves- tigation, including Siegel, paul Bilzerian ( ' 77 ) and lra Sokolow ( ' 81 ). Fred Joseph ( ' 63 ) was CEO of DrexeI during this scandal, although he denied any involvement in the insider trading schemes and claimed he was only guilty 0f "surprising naiveté. " The feds bought that, and the Securities and Exchange Commiss10n merely reprimanded him for failing to properly supervise his star employee. ln a 2005 interview with The N ビル剏 en - sen discussed the propensity Of execufives tO be overly optmistic about forecasts that support lofty share pnces. 。 [lf] executives would present the mar- ket with realistic numbers rather than overoptlmistic expectations, the stock price would stay realistic. But I admit, we scholars don't yet know the real answer to how to make this happen. ” That's called ethics, and Jensen is right: Harvard Business SchOOl doesn t know how to teach ethics as well as it knows how to teach financial e ngineenng , and it never will. ln 2003 , the Harvard Business Sch001 added a Leadership and Corporate Accountability course that sounds like a direct repudiation Of Jensen: decisions that involve responsibilities tO each Of a company S core constltuencles—mvestors, custom- ers, employees, suppliers, and the public, ” with dis- cusslons on insider trading rules, the fall Of Enron, human character, employee responsibilities, labor laws, corporate citizenship, socially responsible investing and serving the public interest. But in this, its influence is akin tO pushing on a string, because Michael Jensen helped create a Franken- stein monster no one knows hOW tO kill. ロ A REPORTING NOTE: Whenl began researching The Golden Passport, from which this excerpt derives,l asked the Harvard Business Schoolif it would be interested in making administrators and faculty available for interviews or providing access t0 the school's extensive historical collection. TO my surprise, HBS tO 旧 me that it had zero interest in engaging with me, and would not make a single person at the schoolavailable for an interview, from the dean on down. HBS did offer to make histori- cal material available to me on an ad hoc basis, except fO 「 any material from the past 50 years—something thatl could getmyself, thanks tO the internet.l asked on a handful Of occasions over the next three-plus years iftheyd changedtheir mind, and when ー went back tO them one finaltime, they declined again. GOLDENPASSPORT. COPYRIGH 02017BYDUFFMCDONALD. REPRINTED HEREWITH PERMISSION OFHARPER BUSINESS,AN IMPRINTOF HARPERCOLLINS PUBLISHERS. 0 American managers loaded their companies With debt, per Jensen, they started paying themselves in equity and options, per Jensen, and they did every- thing they could t0 juice the value of that equity ・ And in doing SO, they sacrificed long-term value for short-term gain, Often engaging in outright fraud tO bring it about. Here's one thing Jensen didn't talk about much when he talked about the wondrous world of hos- tile takeovers: the insider trading it unleashed. Those crlmes first came to light ⅲ 1986 , when Dennis Levine Of Drexel Burnham Lambert was arrested, accused of making $ 12.6 million from insider trading and charged 'with -obstructing Jus- tic &and ー atte mptiwto¯d e stroy•ecords=L evin implicated lvan Boesky, an arbitrageur, whO then implicated Martin SiegeI (HBS ' 71 ) , formerly of Kidder Peabod but then workin for Drexel Burn- ham Lambert. And here's a fun fact for your next cocktail party: lt was insider trading in the shares of Enron, which Michael Milken had helped finance, 45 N E W S W E E K A P R 比 14 , 2 017

十 A MOLE: Shriver had studied and Formertop CIAlawyer RObert Eatinger recalls country, the CIA has tO train more Of its analysts worked in China before applying tO an intense interest at the agency in uncovering on China 仕 om scratch, starting with language the CIA. During a suspected Chinese moles around the time he courses, adds Wilder, wh0 served as the top Asia polygraph test in 2010 , he grew so was retiring in 2015. I don t remember whether expert in the George W. Bush White House. lt can nervous he with- it was the last one, tWO or three years that I knew take a year Of intensive daily classes tO master drew his applica- Of it," he says. He and other CIA veterans con- 1 れ ore than rudimentary Mandarin or Cantonese, tion on the spot. sulted by N どル“た declined to talk more specif- just tWO Of the dozen main tongues on the maln- ically about particular cases. land , many of which are mutually unintelligible. "The problem with those stones is there's CIA spokesman Dean Boyd concedes that always a rumor, a top former CIA offcial says. those applicants whose associations and travels I think there's always worries that someone s pose elevated risks receive elevated scrutiny. gotten through the system, but l'm not really But he says the CIA "has hired and continues to aware that there is a specific hunt going on at this hire such individuals if they meet our security point. ” The CIA does not comment on such sensi- standards. tive matters. MOle hunts are carried out by a very That is a truism, according to other top former small group Of counterintelligence specialists 。 in intelligence offcials : The C IA continue s t0 hire large measure because Of the dangers tO reputa- applicants whO've spent time in China—at least tions and that sort ofthing," says the former CIA those who've withstood a security check that offcial. "lt's kept very, very qulet ・ can take tWO years. But the critics stand by their But the Shriver case gave the security folks a assertions that the agency's heightened security big concern about the targeting Of American stu- s ensitivity tO applicants with multiple visits tO dents in China," says Dennis wilder, the CIA's China has also cost it high-quality talent.'lfyou deputy assistant director for East Asia and the have that on your background, your resume is just pacific from 2015 t0 2016. And today "there's a tossed ⅲ the trash, because they are SO paranoid far greater scrutiny ofanyone whO has spent time about MSS penetration and co-opting students," a in China as a stude nt , p articularly on the lon- former senior CIA intelligence analyst tells Ⅳどル - ルた on condition ofanonymity. ge r-term programs. AS a result, he says, the CIA'S recruitment Of some 0f its best-qualified applicants has stalled. AMERICAN SEDUCTION And that has damaged the agency's ability to For decades, the MSS, China's intelligence understand what's going on inside China.When it agency, primarily targeted Chinese-Americans, shunts applicants who have traveled widely in the especially those working in the defense and intel- NEWSWEEK 14 APRlL14, 2017

N E W W 0 R L D / A I A NEW LEASH ON LIFE Some of the best minds of our generation came tO the U. N. tO decide whether AI will turn humans into pets IN A ROOM at the United Nations overlooking New York's East River, at a table as long as a ten- nis court, around 70 Of the best minds in artificial intelligence recently ate a sea bass dinner and could not agre e on the impact OfAI and robots. This is perhaps the most vexing challenge of AI. There's a great deal of agreement around the notion that humans are cre ating a ge nie unlike any that's poofed out of a bottle so far—yet no consensus on what that genie will dO for us. Or to us. Will AI robots gobble all our j obs and re n- der us their pets? Tesla CEO EIon Musk thinks so. He Just announced his new company, Neuralink, which will explore adding AI-programmed chips tO brains SO people don't become little more than pe sky annoyances tO thinking machine s. At the し N. forum, organized by AI investor Mark Minevich, IPsoft CEO Chetan Dube said AI will have 10 times the impact of any technol- ogy in history in one-fifth the time. He threw around figures in the hundreds oftrillions ofdol- lars when talking about AI's effect on the global economy. The gathered AI chiefs from compa- nies such as Faceb00k, Google, IBM, Airbnb and Samsung nodded their heads. ls such lightning-fast change g00 譱 who knows? Even IPsoft's stated mission sounds like a double-edged ax. The company's website says it wants 。 to power the world with intelligent sys- tems, eliminate routine work and free human talent tO focus on creating value through innova- tion. ” That no doubt sounds awesome to a CEO. To a huge chunk of the population, though, it could come across as happy-speak for a pink slip. Apparently, if you re getting paid a regular wage tO dO "routine work,' you're about to get "freed" 仕 om that tedious job ofyours, and then you had better 。 innovate" ifyou want tO, you know, eat. The folks from IBM talked about how its Wat- son AI will help doctors sift through much more information when diagnosmg p atle nts, and it WIII constantly le arn from all the data, so its thinking will improve. But won t the AI start to do a better jOb than doctors and make the humans unneces- sary? No, the IBMers said. The AI will improve the doctors, so they can help us all be healthier. Hedge fund guys said robottrading systemswill make better investing decisions faster, lmprovlng returns. They didn't seem t00 worried about their caree rs , even though some hedge fund s guided solely by AI are already outperforming human hedge fund managers. Yann LeCun, Facebook's AI chief and one ofthe most respected AI practi- tioners, says AI will be used t0 discover and help eliminate biases and bring people together—yet for now, AI gets accused of uncovenng our indi- vidual biases and servlng up content that con- firms and hardens them, the reby making half the country mad at the other half. Grete Faremo, executive director ofthe United Nations Off1ce for project Services, beseeched te chnologists tO slow down a bit and make sure BY KEVIN MANEY 当 @kmaney NEWSW ・ EEK 48 APR 比 14 , 2017

P A N A M A SPYTALK C H I N A IRAQ A F G H A N I S T A N P 0 L 工 T I C S S Y R I A CHINA CHECKERS As BeiJing expands its efforts to moles have dug their way into Langley recruit CIA spies, some fear Chinese GLENN DUFFIE Shriver looked like an ideal CIA recruit. Gregarious and athletic, the 28 -ye ar- 01d from Michigan had been a good student with strong intere sts in world affairs and fore ign lan- guages since childhood. What made him even more attractlve as a prospective CIA employee, however, was that he had studied and worked in China and was fluent in Mandarin. But when CIA investigators began digging deeper intO his expenences in China, they began t0 suspect that he had been dispatched by BeiJing s spymasters. Under questioning during his pre-employment polygraph test in 2010 , he grew so nervous that he withdrew his appli- cation on the spot and virtually bolted from the r001 れ according tO subsequent accounts. Months later, as he was boarding a plane t0 leave the U. S. , he was arrested by the FBI and charged with trying t0 infiltrate the CIA as a Chinese mole. He was sentenced by a federal court in Virginia tO four years ln prison. T0day, the Shrive r case is still rattling the CIA, N E W S W E E K according t0 sources with deep familianty with the spy agency's China coverage. while Beijing s premier espionage service, the Ministry Of State Security, or MSS, had previously focused on pen- etrating U. S. security by seducing or blackmailing Chinese-Amencans, the Shriver case showed a new and daring attempt tO recruit students from Norman Rockwell's America. The arrest on March 28 Of a State Department employee, Candace Marie Claiborne, on charges 0f lying t0 the FBI about her contacts with Chi- nese intelligence agents will only add t0 what one former CIA offcial calls paranoia ” about Bei- jmg s espionage offensive. Ayear or two ag0' [the CIA] went through a very big mole scare because very high-level [Chinese] sources were getting wrapped up," a former senior U. S. intelligence analyst tells N どル asking not t0 be quoted by name on such a sensitlve subject. "Once that started t0 happen, they felt that there was some- thing internal, and that's whe n they started re ally clamping down on whom they were hiring ・ 12 A P R 比 14 , 2 017 BY JEFF STEIN 当 @SpyTalke r

INTERVIEW Notes to SeIf ModeI turned musician Karen Elson finds her songs on the inside T CAN BE EASY, listening tO Karen Elson talk, to think ofher as a do Ⅱ . One ofthose paper dolls that girls' magazines used t0 pnnt, with a series Of cutout outfits for them tO wear. NOt because she started out as a 1 れ Odel. More because When She describes her 38 years on the planet, they C01 れ e across as a senes ofhigh-speed costume changes. First, the teenage supermodel with shaved eyebrows, photographed by Steven Meisel in 1997 and described by Karl Lagerfeld as "a mixture 0f something 仕 om the Middle Ages and a mutant from another planet" ・ the young jet-setter, storming through the 90S and quelling her fear of long-haul flights with half a Xanax and a gin and tonic; the 26-year-01d bride marrying American musician Jack White ln a canoe on the Amazon in 2005 ; and then, in the years before she released her first album, the mother 0f two huddled with her acoustlc gultar, writing songs lll secret. The Elson sitfing ⅲ front of me this March morning, breakfasting on toast at the S 0h0 H0tel in London, is here tO promote her second album. she's we anng scuffed black boots and a 1970 s Ossie Clark dress, stroking her chin with one willowy, manicured hand while she talks. And Elson 4 り talks. Once she starts, she's hard to stop—riffng on anythmg 仕 om politics to divorce to the community spirit of Nashville, her adopted home in Tennessee. lt can be hard tO concentrate on what she's saymg, though, because, a little like that paper doll, she's flawless. I find myself scan- ning her ⅲ search 0f imperfections. lt's a bit like trymg tO assess ifa pot plant is real or artificial. Few Signs remain Of Elson S working-class upbringing in Oldham, near Manchester. She still says cla the northern way—with a short, snappy a lnstead Of the lacomc southern "clahss ” and recalls her encounters with snobbery when she arrived in London, aged 16. "I felt like the simple northern girl. I had a thick accent, and somebody at a [model] casting told me to get rid ofit. ” lfanything has stayed from her childhood, it s perhaps the determinatlon tO get the best from life. She was bullied at school and endured an eating disorder and her parents divorcing. At 16 , she was scouted by a local model agent; by 18 , she'd shot her first 切 g cover. She says she saw modeling as a grand escape 仕 om it all. I had a once-in-a-lifetime opportunity tO see the world, tO maybe create a new reality. Making music has been another way tO recast her 1 飛 . But it took a while. She started playmg gultar in her teenage bedroom. "The one thing I had going for me as a kid was that I could sing, she says—and she can. Her voice is pretty, by turns bright and whispery, with a hint of husk. But because I was so shy, singing became an introverted love ofmine. ' ln New York in the late 90S and early 2000S , between shOOts for ltalian Vq 化 and Dior ad campaigns, she started writ- ing and recording W1th members 0f Chicago alt- rock band the Smashing pumpkins. "They gave me a chance , ' ' she says. A duet with songwriter Cat Power and a set of backing vocals for R0bert PIant, the former Led Zeppelin singer, followed, and ⅲ 2004 Elson co-founded the New York- based satirical cabaret troupe Citizens Band. Elson met White while starring in a video for his band, the White Stripes. The pair married in 2005 and moved t0 Nashville, where, accord- ing tO some reports, she wrote her first SOIO BY AMY FLEMING 当 @Amy_Fleming MAKING MUSIC HAS BEEN ANOTHER WAY FOR ELSON TO RECAST HER LIFE. BUT IT TOOKAWHILE. N E W S W E E K 56 A P R 比 14 , 2 017