We do not spy on US, says Israel

Israel's government has rejected allegations of espionage within the Pentagon, insisting it maintains a ban on spying in the US. Prime minister Ariel Sharon's office said Israel "does not engage in intelligence activities in the US", in response to the disclosure at the weekend that the FBI has spent a year investigating whether a Pentagon analyst leaked to Israel highly classified material concerning White House policy towards Iran. Cabinet minister Natan Sharansky dismissed the development as a mistake or misunderstanding, and said it could be down to "rivalry" between the Pentagon and CIA. US officials identified the analyst as Larry Franklin, an Iran specialist working under Douglas J Feith, a top Pentagon official with close ties to Israel. Mr Franklin did not respond to a message left at his office. Mr Feith is an influential aide to defence secretary Donald Rumsfeld. His previous work included prewar intelligence on Iraq, including purported ties between Saddam Hussein's regime and al-Qaida terrorism network. [more ]

• In the Pentagon, a suspected spy allegedly passes secrets about Iran to Israel [more]
  

• Alleged Israel Leak a Burden for Rumsfeld [more ]