New NSA spying allegations rile European allies (VIDEO)

WASHINGTON (AP) - The Obama administration faced a breakdown in confidence Sunday from key foreign allies who threatened investigations and sanctions against the U.S. over secret surveillance programs that reportedly installed covert listening devices in European Union offices.

U.S. intelligence officials said they will directly discuss with EU officials the new allegations, reported in Sunday's editions of the German news weekly Der Spiegel. But the former head of the CIA and National Security Agency urged the White House to make the spy programs more transparent to calm public fears about the American government's snooping.

It was the latest backlash in a nearly monthlong global debate over the reach of U.S. surveillance that aims to prevent terror attacks. The two programs, both run by the NSA, pick up millions of telephone and Internet records that are routed through American networks each day. They have raised sharp concerns about whether they violate public privacy rights at home and abroad.

Several European officials - including in Germany, Italy, France, Luxembourg and the EU government itself - said the new revelations could scuttle ongoing negotiations on a trans-Atlantic trade treaty that, ultimately, seeks to create jobs and boost commerce by billions annually in what would be the world's largest free trade area.

"Partners do not spy on each other," said EU Justice Commissioner Viviane Reding. "We cannot negotiate over a big trans-Atlantic market if there is the slightest doubt that our partners are carrying out spying activities on the offices of our negotiators. The American authorities should eliminate any such doubt swiftly."

European Parliament President Martin Schulz, said he was "deeply worried and shocked about the allegations of U.S. authorities spying on EU offices." And Luxembourg Foreign Minister and Deputy Prime Minister Jean Asselborn said he had no reason to doubt the Der Spiegel report and rejected the notion that security concerns trump the broad U.S. surveillance authorities.

"We have to re-establish immediately confidence on the highest level of the European Union and the United States," Asselborn told The Associated Press.

According to Der Spiegel, the NSA planted bugs in the EU's diplomatic offices in Washington and infiltrated the building's computer network. Similar measures were taken at the EU's mission to the United Nations in New York, the magazine said. It also reported that the NSA used secure facilities at NATO headquarters in Brussels to dial into telephone maintenance systems that would have allowed it to intercept senior officials' calls and Internet traffic at a key EU office nearby.

The Spiegel report cited classified U.S. documents taken by NSA leaker and former contractor Edward Snowden that the magazine said it had partly seen.

It did not publish the alleged NSA documents it cited nor say how it obtained access to them. But one of the report's authors is Laura Poitras, an award-winning documentary filmmaker who interviewed Snowden while he was holed up in Hong Kong.

In Washington, a statement from the national intelligence director's office said U.S. officials planned to respond to the concerns with their EU counterparts and through diplomatic channels with specific nations.

However, "as a matter of policy, we have made clear that the United States gathers foreign intelligence of the type gathered by all nations," the statement concluded. It did not provide further details.

NSA Director Keith Alexander last week said the government stopped gathering U.S. citizens' Internet data in 2011. But the NSA programs that sweep up foreigners' data through U.S. servers to pin down potential threats to Americans from abroad continue.

Speaking on CBS' "Face the Nation," former NSA and CIA Director Mike Hayden downplayed the European outrage over the programs, saying they "should look first and find out what their own governments are doing." But Hayden said the Obama administration should try to head off public criticism by being more open about the top-secret programs so that "people know exactly what it is we are doing in this balance between privacy and security."

"The more they know, the more comfortable they will feel," Hayden said. "Frankly, I think we ought to be doing a bit more to explain what it is we're doing, why, and the very tight safeguards under which we're operating."

Hayden also defended a secretive U.S. court that weighs whether to allow the government to seize the Internet and phone records from private companies. The Foreign Intelligence Surveillance Court is made up of federal judges but does not consider objections from defense attorneys in considering the government's request for records.

Last year, the government asked the court to approve 1,789 applications to spy on foreign intelligence targets, according to a Justice Department notice to Congress dated April 30. The court approved all but one - and that was withdrawn by the government.

Critics have derided the court as a rubber stamp approval for the government, sparking an unusual response last week in The Washington Post by its former chief judge. In a statement to the newspaper, U.S. District Judge Colleen Kollar-Kotelly refuted a draft NSA inspector general's report that suggested the court collaborated with the executive branch instead of maintaining judicial independence. Kollar-Kotelly was the court's chief judge from 2002 to 2006, when some of the surveillance programs were underway.

Some European counties have much stronger privacy laws than does the U.S. In Germany, where criticism of the NSA's surveillance programs has been particularly vocal, Justice Minister Sabine Leutheusser-Schnarrenberger likened the spying outlined in the Der Spiegel report to "methods used by enemies during the Cold War." German federal prosecutors are examining whether the reported U.S. electronic surveillance programs broke German laws.

Green Party leaders in the European Parliament called for an immediate investigation into the claims and called for existing U.S.-EU agreements on the exchange of bank transfer and passenger record information to be canceled.

The dispute also has jeopardized diplomatic relations between the U.S. and some of it its most unreliable allies, including China, Russia and Ecuador.

Ecuador president:

Snowden can't leave Moscow

Snowden is "under the care of the Russian authorities" and can't leave Moscow's international airport without their consent, Ecuadorean President Rafael Correa told The Associated Press Sunday in an interview telegraphing the slim and diminishing possibility that the National Security Agency leaker will end up in Ecuador.

Correa portrayed Russia as entirely the master of Snowden's fate and said Ecuador is still awaiting an asylum request from Snowden before deciding its next moves.

Russian President Vladimir Putin has distanced himself from the case since Snowden arrived in Moscow last week, insisting the 30-year-old former NSA contractor remains in the transit zone of the capital's Sheremetyevo Airport and that as long as he has not legally entered Russia, he is out of the Kremlin's control.

At the same time, the Kremlin said Sunday that it will take public opinion and the views of human rights activists into account when considering Snowden's case, a move that could lay the groundwork for him to seek asylum in Russia.

"This is the decision of Russian authorities," Correa said. "He doesn't have a passport. I don't know the Russian laws, I don't know if he can leave the airport, but I understand that he can't. At this moment he's under the care of the Russian authorities.

"If he arrives at an Ecuadorean Embassy we'll analyze his request for asylum."

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