Earlier quoted context omitted.
I'm not suggesting that. The idea is that if a country can't do mass surveillance on it's own people due to political reasons, still can just let an ally do it and get that information from that ally as a part of information sharing agreement.
I can believe that it happens in some cases but I doubt it would make a lot of sense to do it for the mass surveillance of the population, if only because it would also make it extremely easy to do large scale industrial espionage. I'm pretty sure Germany wouldn't want the USA to have access to all of its trade and industrial secrets for instance. At least I would require a better source than "if I remember correctly…
On your second point, industrial espionage is, I suspect, a large factor in determining which countries should be spied on. Does anyone really think that Boeing doesn't get competitor info from US agencies?