It was at this same time that another major crisis occurred, one in which Oxcart played a secret role, the precise details of which were only made public in 2007. On the foggy morning of January 23, 1968, approximately two thousand miles to the northeast of Vietnam, the U.S. Navy ship USS Pueblo sailed into icy waters off the coast of North Korea and dropped anchor. The Pueblo’s cover story was that it was conducting scientific research; really, it was on an espionage mission, a joint NSA-Navy operation with the goal of gathering signals intelligence, or SIGINT. In addition to the regular crew, there were twenty-eight signals intelligence specialists working behind locked doors in a separate and restricted part of the vessel. Parked 15.8 miles off North Korea’s Ung-do Island, technically the Pueblo was floating in international waters.
North Korea’s Communist regime did not see it that way. The ship was close enough to be eavesdropping on Wonson harbor, which made it an open target for the North Korean People’s Army, the KPA. After one of the Pueblo’s crew members picked up on radar that a KPA ship was approaching fast, Pueblo’s captain, Lloyd M. Bucher, went up to the bridge to have a look around. Through his binoculars, Bucher saw not just a military ship but one with its rocket launchers aimed directly at the Pueblo. Bucher ordered certain flags to be raised, ones that indicated the USS Pueblo was on a surveying mission, something the North Koreans obviously already did not buy. Within minutes, Chief Warrant Officer Gene Lacy spotted several small vessels on the horizon: torpedo boats coming from Wonson. Next, two MiG-21 fighter jets appeared on the scene.
Captain Bucher now had a national security nightmare on his hands. His boat was filled with thousands of classified papers, cryptographic manuals, and encryption machines. Most significantly, the Pueblo carried a KW-7 cipher machine, which was the veritable Rosetta stone of naval encryption. The captain considered sinking his ship, which would take forty-seven minutes, but later explained that he knew if he had done so a gun battle was certain to ensue. Most of the Pueblo’s life rafts would be shot at and destroyed. Without life rafts, the men would die in the icy waters in a matter of minutes, Bucher was certain. He made the decision to flee.
The North Korean ship raised a flag that signaled “Heave to or I will open fire on you.” Captain Bucher raised a signal flag in response: “Thank you for your consideration. I am departing the area.” But the North Koreans opened fire. Bucher himself was hit, taking shrapnel in his foot and backside. As the Pueblo took off, the North Koreans continued to fire, killing a U.S. sailor named Duane Hodges. Meanwhile, behind the secret door, SIGINT specialists smashed cipher equipment with axes and shoved documents into a small incinerator there. Despite the speed at which the analysts worked to burn the secret papers, 90 percent of the documents survived. Sixty-one minutes after being shot, Captain Bucher was no longer in control of his ship. The North Korean People’s Army stormed the Pueblo and took the captain and his eighty-two crew members hostage. For the first time in 160 years, an American vessel had been seized by a foreign nation. The timing could not have been worse. America was already losing one war.