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LONDON – Along with warnings that Chinese intelligence agents have been recruiting prostitutes to use to entrap United Kingdom business leaders during the coming trade fair and electronic exhibition season, the government also is issuing an alert that those free memory sticks or even digital cameras being distributed could include spy software, according to a report from Joseph Farah’s G2 Bulletin.

“They will be providing gifts of the very latest cameras and memory sticks. We are satisfied that these contain electronic ‘trojan bugs’ which will provide the Chinese with remote access to businessmen’s computers,” said a new report prepared the Security Service Centre for Protection of National Infrastructure.

The alert, a 14-page document with an introduction from MI5 chief Jonathan Evans, describes how the Chinese Secret Intelligence Service, CSIS, is planning to try to obtain the industry’s secrets.

It suggests CSIS has been recruiting an unprecedented number of call-girls as “gifts” and who would be used to entrap U.K. business leaders.

It describes CSIS as “one of the most significant threats to the U.K. which is supported by China’s own widespread electronic hacking.”

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The document describes how Britain has become the CSIS’s prime target. It has paid the fees for Chinese students to complete their postgraduate studies at Cambridge, Oxford and other universities with high-quality research facilities in the technology field.

They are then encouraged to apply for jobs in the U.K. world-leading high-tech industry where many firms have ultra-secret defense contracts.

By then students have been trained by CSIS officers on how to steal secrets from their employers and bring them to CSIS agents in Britain, including dozens with diplomatic cover.

The Security Service estimates there are almost 60 Chinese spies in Britain, the largest number from any one country operating in the U.K.

MI5 officials confirm in the period 2007-2009 about 16 million British pounds worth of secrets were stolen.

But the report also warns that call-girls are only part of the spy network’s strategy. It also will include attempts by the People’s Liberation Army and the Ministry of Public Service to trick people into allowing access to the nation’s business computers.

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