This is comical.

"Mass domestic surveillance. We support the use of AI for lawful foreign intelligence and counterintelligence missions. But using these systems for mass domestic surveillance is incompatible with democratic values"

Translating to human language: mass surveillance in USA "is incompatible with democratic values" but if we do that against, say, Germany or France this is OK. Ah, and if we use AI for "counterintelligence missions", for instance against <put here an organization/group that current administration does not like> this is also OK, even if this happens in USA.

Perhaps Anthropic thinks it can provide a local model that classifies surveillance targets as red blooded Americans.