Australian government fears that NSA whistleblower Edward Snowden may leak details about Australia's surveillance methods thereby embarrassing its relations with neighbouring Asian countries.
Former Labour Defence Minister John Faulkner has confirmed that Australian Security Intelligence Organisation and Defence Signals Directorate have briefed the federal parliament's intelligence committee about the US led surveillance programme called 'Prism', The Age reports.
According to the report, defence intelligence officials have said that there have been 'intense exchanges' on Snowden's revelations between US' NSA and CIA and Australian intelligence agencies.
However, the Australian intelligence agencies are unsure about the kind of data Snowden gained access to while working as the NSA contractor at Booz Allen Hamilton.
Officials fear that disclosure of highly sensitive and classified intelligence collection and methodology will not only damage Australia's intelligence capabilities but will also damage the country's ties with its neighbours.
The report said that the Australian officials feel that US may be able to handle some of the diplomatic fallout resultant of the leaks, but China, Malaysia and other countries would respond to Australia in ways differing from that used for US.
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The leaks, if take place, are said to be bigger and more lasting in impact compared to the 2011 WikiLeaks in which thousands of US diplomatic cables were leaked by US Army private Bradley Manning.
Chair of US Senate intelligence committee, Senator Dianne Feinstein has accused Snowden of treason and said that his revelations have caused irreversible and significant damage to the country and its allies.
Faulkner has said that Snowden's revelations will heighten anxiety in the country about data retention adding that it was essential that any legislation to establish a mandatory data retention scheme in Australia contain the strongest safeguards to protect the privacy of its citizens, the report added.