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==Rise of Modern Spying==
Modern American espionage begins in the late 19th century when Grover Cleveland called for assigning military attachés in foreign countries to gather more information about different countries. John Wilkie became head of the US Secret Service in the 1890s and became noted for breaking up a Spanish spy ring in Montreal during the Spanish-American War. Teh Secret Service was created as a result of the Civil War and for its first few decades mostly focused on combating counterfeiting of the US currency and other acts that could sabotage the US economy, such as smuggling. In 1908, the Bureau of Investigation, what eventually became as the Federal Bureau of Investigation (FBI), was formed. Initially, they focused on policing activities and against organized criminal activities such as prostitution. However, they also engaged in domestic surveillance. This was tested in World War I, where they were able to discover German agents and saboteurs. Nevertheless, in World War I, the US was still not effective in foreign espionage. Most intelligence from World War I depended on British spy services that were established.<ref>For more on the rise of American spying after 1865 and until World War I, see: Hastedt, Glenn P., ed. 2011. <i>Spies, Wiretaps, and Secret Operations: An Encyclopedia of American Espionage</i>. Santa Barbara, Calif: ABC-CLIO.</ref>
After World War I, most activity focused on domestic surveillance, particularly against communists and others deemed as threats. In the 1920s, modern cryptography developed in the US. William Friedman, a Russian immigrant, was appointed as cryptanalyst for the Army Signal Intelligence Service, which was successful in breaking the Japanese code used in their diplomatic cables. This enabled the US to be aware that an attack like Pearl Harbor was going to occur, although they were not able to determine where it would occur. World War II, particularly with the attack on Pearl Harbor, led to major new developments in intelligence gathering in the US. The US Navy's Combat Intelligence Unit was appointed with creating a a code breaking unit called "Magic." This work help lead to early developments of computers, such as it had in Britain by work conducted by Allan Turning during World War II. World War II also began the long relationship between private industry and government for espionage work, with IBM developing their punch card machines to help in cracking Japanese code used in the war. This culminated in the Battle of Midway, where the US had advance knowledge of the battle and were able to defeat the Japanese because they had known when and where the attack would take place. During World War II, the Office of Strategic Services (OSS) began to coordinate special operations and spying activity.
