Assuming that this story is in fact true (as opposed to being disinformation, a hoax, or something like the man-eating badgers the British are releasing in Iraq), it makes one wonder exactly how the CIA/MI6/Mossad are tricking out these squirrels. Presumably they'd be surgically implanted with some sort of telemetry and communications equipment (a GPS receiver and radio transmitter, for example), along with a power source (which could be a battery, possibly coupled with something to generate power from the squirrel's metabolism or body heat). The devices may be passive, merely transmitting captured data, or they may be wired into the squirrel's brain, controlling its behaviour by stimulating reward centres (this has been successfully done with rats). Whether they could get useful data from the squirrels' visual/auditory cortices is another matter; implanting a microphone may be doable, but a camera would, I suspect, look rather conspicuous.