Of course we've always done it among partners and friends....You don't do that among partners. You don't do that among friends...
When Spycatcher was released in 1987, the uproar wasn't about spying on the Soviets. It was about MI5 spying on France, the Commonwealth conferences, etc.
Back in the 1970s - because the Canadian embassy in Moscow was better located - the NSA trained some Canadians to set up an "embassy collection" operation. Using special equipment they'd listen in on radio traffic in Moscow. Even then they had computerized equipment that could listen for specific key words.
Naturally, when they got back to Ottawa they had a look at the roof of the American embassy. All the same specialized antennas were there.
A few years later they intercepted the American ambassador's car phone, learned the American bargaining position on a multi-billion-dollar grain deal with China. That information was used to barely underbid the US and get the deal for Canada.
As Spycatcher would point out, the NSA is guilty of breaking the 11th Commandment: Thou shalt not get caught.