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Jointly funded by the Army and the State Department, the Cipher Bureau was disguised as a New York City commercial code company; it actually produced and sold such codes for business use.
Its true mission, however, was to break the communications (chiefly diplomatic) of other nations.
Its most notable known success was at the Washington Naval Conference, during which it aided American negotiators considerably by providing them with the decrypted traffic of many of the conference delegations, most notably the Japanese.
The Black Chamber successfully persuaded Western Union, the largest U. telegram company at the time, as well as several other communications companies to illegally give the Black Chamber access to cable traffic of foreign embassies and consulates.
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The NSA mounted a major effort to secure tactical communications among U. However a variety of technical and operational problems limited their use, allowing the North Vietnamese to exploit and intercept U. The White House asserted that the NSA interception had provided "irrefutable" evidence that Libya was behind the bombing, which U. President Ronald Reagan cited as a justification for the 1986 United States bombing of Libya.
In 1999, a multi-year investigation by the European Parliament highlighted the NSA's role in economic espionage in a report entitled 'Development of Surveillance Technology and Risk of Abuse of Economic Information'.
NSA's infrastructure deteriorated in the 1990s as defense budget cuts resulted in maintenance deferrals.
On January 24, 2000, NSA headquarters suffered a total network outage for three days caused by an overloaded network.
Incoming traffic was successfully stored on agency servers, but it could not be directed and processed.
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