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GCHQ, the government’s eavesdropping centre, is developing classified technology to intercept and monitor all e-mails, website visits and social networking sessions in Britain. The agency will also be able to track telephone calls made over the internet, as well as all phone calls to land lines and mobiles.

The £1 billion snooping project — called Mastering the Internet (MTI) — will rely on thousands of “black box” probes being covertly inserted across online infrastructure.

The top-secret programme began to be implemented last year, but its existence has been inadvertently disclosed through a GCHQ job advertisement carried in the computer trade press.

Last week, in what appeared to be a concession to privacy campaigners, Smith announced that she was ditching controversial plans for a single “big brother” database to store centrally all communications data in Britain.

“The government recognised the privacy implications of the move [and] therefore does not propose to pursue this move,” she said.

Grabbing favourable headlines, Smith announced that up to £2 billion of public money would instead be spent helping private internet and telephone companies to retain information for up to 12 months in separate databases.

However, she failed to mention that substantial additional sums — amounting to more than £1 billion over three years — had already been allocated to GCHQ for its MTI programme.

Shami Chakrabarti, director of Liberty, said Smith’s announcement appeared to be a “smokescreen”.

“We opposed the big brother database because it gave the state direct access to everybody’s communications. But this network of black boxes achieves the same thing via the back door,” Chakrabarti said.

Informed sources have revealed that a £200m contract has been awarded to Lockheed Martin, the American defence giant.

However, the District 4 Court of Appeals said it was “more than a little troubled” by that conclusion and asked Wisconsin lawmakers to regulate GPS use to protect against abuse by police and private individuals.

As the law currently stands, the court said police can mount GPS on cars to track people without violating their constitutional rights — even if the drivers aren’t suspects.

Officers do not need to get warrants beforehand because GPS tracking does not involve a search or a seizure, Judge Paul Lundsten wrote for the unanimous three-judge panel based in Madison.

That means “police are seemingly free to secretly track anyone’s public movements with a GPS device,” he wrote.

This time Elsevier Australia went the whole hog, giving Merck an entire publication which resembled an academic journal, although in fact it only contained reprinted articles, or summaries, of other articles. In issue 2, for example, nine of the 29 articles concerned Vioxx, and a dozen of the remainder were about another Merck drug, Fosamax. All of these articles presented positive conclusions. Some were bizarre: such as a review article containing just two references.

In a statement to The Scientist magazine, Elsevier at first said the company “does not today consider a compilation of reprinted articles a ‘journal'”. I would like to expand on this ­statement: It was a collection of academic journal articles, published by the academic journal publisher Elsevier, in an academic ­journal-shaped package. Perhaps if it wasn’t an academic journal they could have made this clearer in the title which, I should have mentioned, was named: The Australasian Journal of Bone and Joint Medicine.

Things have deteriorated since. It turns out that Elsevier put out six such journals, sponsored by industry. The Elsevier chief executive, Michael Hansen, has now admitted that they were made to look like journals, and lacked proper disclosure. “This was an unacceptable practice and we regret that it took place,” he said.

Liberal Democrat Tom Brake says he saw what he believed to be two plain-clothes police officers go through a police cordon after presenting their ID cards.

Brake, who along with hundreds of others was corralled behind police lines near Bank tube station in the City of London on the day of the protests, says he was informed by people in the crowd that the men had been seen to throw bottles at the police and had encouraged others to do the same shortly before they passed through the cordon.

Brake, a member of the influential home affairs select committee, will raise the allegations when he gives evidence before parliament’s joint committee on human rights on Tuesday.

“When I was in the middle of the crowd, two people came over to me and said, ‘There are people over there who we believe are policemen and who have been encouraging the crowd to throw things at the police,'” Brake said. But when the crowd became suspicious of the men and accused them of being police officers, the pair approached the police line and passed through after showing some form of identification.

Brake has produced a draft report of his experiences for the human rights committee, having received written statements from people in the crowd. These include Tony Amos, a photographer who was standing with protesters in the Royal Exchange between 5pm and 6pm. “He [one of the alleged officers] was egging protesters on. It was very noticeable,” Amos said. “Then suddenly a protester seemed to identify him as a policeman and turned on him. He ­legged it towards the police line, flashed some ID and they just let him through, no questions asked.”

Sir Allen Stanford, who is accused of bank fraud, is the subject of an investigation by the BBC’s Panorama.

Sources told Panorama that if he was a paid anti-drug agency informer, that could explain why a 2006 probe into his financial dealings was quietly dropped.

Sir Allen vigorously denies allegations of financial wrongdoing, despite a massive shortfall in his bank’s assets.

But the British receiver of his failed Stanford International Bank – based in Antigua – told Panorama that the books clearly show the deficit.

Secret documents

Of the $7.2bn (£4.8bn) in deposits claimed by the bank, only $500m (£331m) has been traced.

The $6.7bn (£4.4bn) black hole in Sir Allen’s off-shore bank affects 28,000 depositors – 200 of whom are British, who have collectively lost $80m (£53m) – and raises serious questions for the British Foreign Office and the American authorities.

Secret documents seen by Panorama show both governments knew in 1990 that the Texan was a former bankrupt and his first bank was suspected of involvement with Latin American money-launderers.

The cheque was proof that Stanford International Bank had been used to launder Mexican drug money – whether or not Sir Allen knew it at the time.

Drug lords

On 17 February of this year, the US Securities and Exchange Commission (SEC) accused Sir Allen of running a multi-billion dollar Ponzi fraud – when cash from new depositors is used to pay dividends to old depositors – civil charges he has denied.

Two and a half months after the SEC filing, the Texan has not yet faced criminal charges.

He was initially investigated by the SEC for running a possible Ponzi fraud in the summer of 2006, but by the winter of that year the inquiry was stopped.

Panorama understands that the decision was taken because of a request by another government agency.

Panorama is aware of strong evidence that Sir Allen was a confidential agent of the DEA as far back as 1999 – the year he made out the $3.1m cheque to the DEA.

“We were convinced that Stanford’s bank attracted millions of narco-dollars, but it was very difficult to get the evidence to nail him,” sources told Panorama. “The word is that Stanford has been a confidential informer for the DEA since ’99.”

Financial experts believe that many of the depositors in Sir Allen’s off-shore bank were ordinary investors attracted by high interest rates, but that its base in the Caribbean also attracted drug money.

‘No comment’

The DEA declined to comment on the allegation that he had been one of their informers, and the English Cricket Board said they had investigated Sir Allen fully and that he had fulfilled his contract.

A Foreign Office spokesman said: “The UK government does take financial malpractice very seriously and issues regular advice on countries and jurisdictions where there may be serious deficiencies in regulation. It is for companies and the financial professionals they employ to act on this advice with all due diligence.”

Sir Allen Stanford has bitterly denied that he is a fraudster, saying: “It’s no Ponzi.”

On the concerns about money-laundering, in one recent interview, he said: “The Mexican drug cartel? Absolutely not. Never would. That is something absolutely foreign to everything in my body.”

Subsequently the United States commissioned the Central Intelligence Agency’s Open Source Center to translate the leak to English. The translation was not released by the CIA, but a copy was obtained by Stephen Aftergood, editor of the US based Federation of American Scientist’s Secrecy News and is presented here.

Louis Caldera said the controversy had made it impossible for him to effectively lead the White House Military Office. “Moreover, it has become a distraction in the important work you are doing as president,” Caldera said in his resignation letter to President Barack Obama.

Read Caldera’s Resignation (PDF)

White House Review Of Flyover (PDF)

The sight of the huge passenger jet and an F-16 fighter plane flying past the Statue of Liberty and the lower Manhattan financial district sent panicked office workers streaming into the streets on April 27. Obama said it would not happen again.

Caldera’s office approved the photo-op, which cost $35,000 in fuel alone for the plane and two jet fighter escorts. The Air Force estimated the photo shoot cost taxpayers $328,835.

White House officials said the flight was designed to update the official photo of the plane, known as Air Force One when the president is aboard. The White House released a photo of the blue-and-white plane high above the Statue of Liberty, with New Jersey in the background.

The White House released the report late Friday afternoon via e-mail, with a short written statement from White House press secretary Robert Gibbs. There was no statement about the matter from Obama, who last month declared the embarrassment a “mistake” and vowed it would not be repeated.

Gibbs said Obama has ordered a review of how the White House Military Office is set up, and how it reports to the White House and the Air Force.

That review, to be conducted by Deputy Chief of Staff Jim Messina and Defense Secretary Robert Gates, will also offer recommendations to Obama designed to ensure that such an incident will not happen again, Gibbs said.

Caldera, a former Army secretary, has headed the office that coordinates presidential travel on Air Force jets.

When Obama appointed Caldera to the job during the presidential transition, the then president-elect hailed Caldera as having a resume that was second-to-none. Obama said then: “I know he’ll bring to the White House the same dedication and integrity that have earned him the highest praise in every post.”

Scientists and conservationists on the expedition will begin attempts to retrieve and recycle a monument to throwaway living in the middle of the North Pacific.

The toxic soup of refuse was discovered in 1997 when Charles Moore, an oceanographer, decided to travel through the centre of the North Pacific gyre (a vortex or circular ocean current). Navigators usually avoid oceanic gyres because persistent high-pressure systems — also known as the doldrums — lack the winds and currents to benefit sailors.

Mr Moore found bottle caps, plastic bags and polystyrene floating with tiny plastic chips. Worn down by sunlight and waves, discarded plastic disintegrates into smaller pieces. Suspended under the surface, these tiny fragments are invisible to ships and satellites trying to map the plastic continent, but in subsequent trawls Mr Moore discovered that the chips outnumbered plankton by six to one.

The damage caused by these tiny fragments is more insidious than strangulation, entrapment and choking by larger plastic refuse. The fragments act as sponges for heavy metals and pollutants until mistaken for food by small fish. The toxins then become more concentrated as they move up the food chain through larger fish, birds and marine mammals.