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BULLETIN
Monday, 15 March 2004

>> SAY IT AINT SO...


Report: Saddam Harbored Terrorists Who Killed Americans
http://www.newsmax.com/archives/ic/2004/3/14/141831.shtml


Saddam Hussein supplied financial support, training and shelter for an array of deadly terrorist organizations right up until the onset of the Iraq war a year ago, including such notorious groups as Hamas, Ansar al-Islam, the Palestinian Liberation Front, the Abu Nidal Organization and the Arab Liberation Front, according to a comprehensive report released by the Hudson Institute.

Titled "Saddam's Philanthropy of Terror," the report details the role played by terrorists supported by Saddam's regime in an array of infamous attacks that have killed hundreds of American citizens both inside and outside the U.S. before and after the Sept. 11 attacks - including the 1985 hijacking of the Achille Lauro, the 1988 bombing of Pan Am Flight 103, the 1993 World Trade Center bombing and the Palestinian Intifada.

Compiled by Deroy Murdock, a Senior Fellow with the Atlas Economic Research Foundation in Fairfax, Va., and columnist with the Scripps Howard News Service, the report chronicles Saddam's support for:


Abdul Rahman Yasin, who was indicted for mixing the chemicals for the bomb used in the 1993 World Trade Center bombing, which killed six New Yorkers and injured over 1,000. Yasin fled to Baghdad after the attack, where he was given sanctuary and lived for years afterward.

Khala Khadar al-Salahat, a top Palestinian deputy to Abu Nidal, who reportedly furnished Libyan agents with the Semtex explosive used to blow up Pan Am Flight 103 in December 1988. The attack killed all 259 passengers, including 189 Americans. Al-Salahat was in Baghdad last April and was taken into custody by U.S. Marines.

Abu Nidal, whose terror organization is credited with dozens of attacks that killed over 400 people, including 10 Americans, and wounding 788 more. Nidal lived in Baghdad from 1999 till August 2002, when he was found shot to death in his state-supplied home.

Abu Abbas, who masterminded the 1985 hijacking of the Achille Lauro cruise ship, during which wheelchair-bound American Leon Klinghoffer was pushed over the side to his death. U.S. troops captured Abbas in Baghdad on April 14, 2003. He died in U.S. custody last week.

Abu Musab al Zarqawi, who ran an Ansar al-Islam terrorist training camp in northern Iraq and reportedly arranged the October 2002 assassination of U.S. diplomat Lawrence Foley in Jordan. Al Zarqawi is still at large.

Ramzi Yousef, who entered the U.S. on an Iraqi passport and was the architect of the 1993 World Trade Center bombing as well as Operation Bojinka, a foiled plot to explode 12 U.S. airliners over the Pacific. Bojinka was later adopted by Yousef's cousin Khalid Shaikh Mohammed as the blueprint for the Sept. 11 attacks.
Arrested in Pakistan in 1995, Yousef is currently serving a triple life sentence in Colorado's Supermax federal lockup.


Mahmoud Besharat, the Palestinian businessman who traveled to Baghdad in March 2002 to collect funding from Saddam for the Palestinian Intifada. Besharat and others disbursed the funds in payments of $10,000 to $25,000 to West Bank families of terrorists who died trying to kill Israelis.
After Saddam announced his Intifada reward plan, 28 Palestinian homicide bombers killed 211 Israelis in attacks that also killed 12 Americans. A total of 1,209 people were injured.

For more details on Saddam Hussein's sponsorship of the terrorist networks that killed hundreds of innocent U.S. citizens, go to: http://www.hudson.org/files/publications/murdocksaddamarticle.pdf

Editor's note:




http://www.hudson.org/files/publications/murdocksaddamarticle.pdf
Saddam Hussein's
Philanthropy of Terror
International
Relations
Emergency workers treat one of the 1,042 individuals injured in the February 1993 World Trade Center bombing. This attack also
killed six people. Abdul Rahman Yasin (inset), indicted for mixing the chemicals in that bomb, fled to Baghdad after the attack and
lived there for years afterward.
46 AMERICAN OUTLOOK FA L L 2 0 0 3
AMERICAN OUTLOOK FA L L 2 0 0 3 47
I N T E R N AT I O N A L R E L AT I O N S
Many critics of the war in Iraq belittle claims of Saddam Hussein's ties to
terrorism. In fact, for years, he was militant Islam's Benefactor-in-Chief.
Deroy Murdock
"Inever believed in the link between Saddam Hussein, Osama bin Laden, al Qaeda, and Islamist terrorism," former Secretary of State Madeleine Albright flatly declared in an October 21 essay published in Australia's Melbourne Herald Sun.i "Iraq was not a breeding ground for terrorism. Our invasion has made it one," said Senator Ted Kennedy (D-Massachusetts) on October 16. "We were told Iraq was attracting terrorists from al Qaeda. It was not."ii As President Bush continues to lead America's involvement in Iraq, he increasingly is being forced to confront those who dismiss Saddam Hussein's ties to terrorism and, thus, belittle a key rationale for Operation Iraqi Freedom. Bush's critics wield a flimsy and disingenuous argument that nonetheless enjoys growing appeal among a largely hostile press corps. Hussein did not personally order the September 11 attacks, the fuzzy logic goes, hence he has no significant ties to terrorists, especially al Qaeda. Consequently, the Iraq war was launched under bogus assumptions, and, therefore, Bush should be defeated in November 2004. West Virginia's Jay Rockefeller, the Senate Intelligence Committee's ranking Democrat, exemplified this thinking recently when he told the Los Angeles Times that Iraq's alleged al Qaeda ties were "tenuous at best and not compelling."iii In a September 16 editorial, the L.A. Times slammed Vice President Dick Cheney for making "sweeping, unproven claims about Saddam Hussein's connections to terrorism." On August 7, former vice president Albert Gore stated flatly, "The evidence now shows clearly that Saddam did not want to work with Osama bin Laden at all."iv All of these claims about a lack of ties between Hussein and terrorists, however, are untrue, and it is important that debate on this vital issue be informed After running an al Qaeda training camp in Afghanistan, Abu Musab al Zarqawi received medical care in Baghdad once the Taliban fell. He opened an Ansar al-Islam camp in northern Iraq and reportedly arranged the October 2002 assassination of U.S. diplomat Lawrence Foley in Jordan. Zarqawi is at large.
Abu Abbas masterminded the 1985 hijacking of the ocean liner Achille Lauro during which American retiree Leon Klinghoffer was murdered. U.S. troops captured Abbas in Baghdad last April 14. Iraqi Ramzi Yousef, architect of the 1993 World Trade Center bombing, arrived in America on an Iraqi passport before fleeing after the attack on Pakistani papers.
Abu Nidal's terrorist gang killed 407 people, including 10 Americans, and wounded 788 more. He lived in Baghdad between 1999 and his mysterious shooting death in August 2002.
48 AMERICAN OUTLOOK FA L L 2 0 0 3
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by facts. The president and his national security team should devote entire speeches and publications--complete with names, documents, and visuals, including the faces of terrorists and their innocent victims--to remind Americans and the world that Baathist Iraq was a general store for terrorists, complete with cash, training, lodging, and medical attention.
Indeed, this magazine
article could serve as a model for the kinds of communications that the administration regularly should generate to set the record straight about Hussein and terrorism and reassert the reasons behind the Iraq mission. Such an effort to reinvigorate U.S. public diplomacy on Iraq should be easy. After all, the evidence of Hussein's cooperation with and support for global terrorists is abundant and increasing, to wit:
Saddam Hussein's Habitual Support for Terrorists Both supporters and opponents of Islamic terror have provided abundant evidence of Hussein's aid for a wide array of terrorists. Consider the following.
* Hussein paid bonuses of up to $25,000 to the families of Palestinian homicide bombers.
"President Saddam Hussein has recently told the head of the Palestinian political office, Faroq al Kaddoumi, his decision to raise the sum granted to each family of the martyrs of the Palestinian uprising to $25,000 instead of $10,000," Iraq's former deputy prime minister, Tariq Aziz, announced at a Baghdad meeting of Arab politicians and businessmen on March 11, 2002, Reuters reported two days later.v
Mahmoud Besharat, who the White House says disbursed these funds across the West Bank, gratefully said, "You would have to ask President Saddam why he is being so generous. But he is a revolutionary and he wants this distinguished struggle, the intifada, to continue."vi
Such largesse poured forth until the eve of the Iraq war. As Knight-Ridder's Carol Rosenberg reported from Gaza City last March 13: "In a graduation-style ceremony Wednesday, the families of 22 Palestinians killed fighting Israelis received checks for $10,000 or more, certificates of appreciation and a kiss on each cheek--compliments of Iraq's Saddam Hussein." She added: "The certificates declared the gift from President Saddam Hussein; the checks were cut at a Gaza branch of the Cairo-Amman bank." This festivity, attended by some 400 people and organized by the then-Baghdad-backed Arab Liberation Front, occurred March 12, just eight days before American-led troops crossed the Iraqi frontier.vii
Hussein's patronage of Palestinian terror proved fatally fruitful. Between the March 11, 2002, increase in cash incentives to $25,000 and the March 20, 2003, launch of Operation Iraqi Freedom, 28 homicide bombers injured 1,209 people and killed 223 more, including 12 Americans.viii
* According to the U.S. State Department's May 21, 2002, report on Patterns of Global Terrorism,ix the Abu Nidal Organization (ANO), the Arab Liberation Front, Hamas, the Kurdistan Workers' Party, the Mujahedin-e-Khalq Organization, and the Palestine Liberation Front all operated offices or bases in Hussein's Iraq. Hussein's hospitality toward these mass murderers directly violated United Nations Security Council Resolution 687, which prohibited him from granting safe haven to or otherwise sponsoring terrorists.
* Key terrorists enjoyed Hussein's warmth, some so recently that Coalition forces subsequently found them alive and well and living in Iraq. Among them:
* U.S. Special Forces nabbed Abu Abbas last April 14 just outside Baghdad. Abbas masterminded the October 7-9, 1985, Achille Lauro cruise ship hijacking in which Abbas's men shot passenger Leon Klinghoffer, a 69-year old Manhattan retiree, then rolled him, wheelchair and all, into the Mediterranean. Abbas briefly was in Italian custody at the time, but was released that October 12 because he possessed an Iraqi diplomatic passport.
Since 2000, Abbas
September 11 hijackers Nawaz al-Hamzi (left) and Khalid al-Midhar (right) were on American Airlines Flight 77 when it slammed into the Pentagon and killed 216 people. The two terrorists reportedly met Iraqi VIP airport greeter Ahmad Hikmat Shakir in Kuala Lampur, Malaysia, on January 5, 2000, whereupon he escorted them to a 9-11 planning summit with other al Qaeda members.
Khala Khadar al-Salahat, a top deputy to Palestinian terrorist Abu Nidal,
reportedly furnished Libyan agents the bomb that demolished Pan Am Flight 103 in December 1988. That attack killed all 259 on board and 11 on the ground in Lockerbie, Scotland. Baghdad resident al Salahat surrendered to U.S. Marines last April. Delaware exchange student John Buonocore, age 20, was among those killed when the Abu Nidal Organization (ANO) used guns and grenades to attack a TWA ticket counter at Rome's Leonardo Da Vinci airport in December 1986. The ANO maintained offices in Baghdad until U.S. troops liberated the Iraqi capital.
American Abigail Litle, the 14-year-old daughter of a Baptist minister, was killed by a Palestinian homicide bomber while riding a bus in Haifa, Israel, on March 5, 2003. Saddam Hussein paid bonuses of up to $25,000 to the families of terrorists who killed at least 223 people, including 11 other Americans.
49
I N T E R N AT I O N A L R E L AT I O N S
resided in Baghdad, still under Saddam
Hussein's protection.x
* Khala Khadr al Salahat, a member of the ANO, surrendered to the First Marine Division in Baghdad on April 18. As the Sunday Times of London reported on August 25, 2002, a Palestinian source said that al Salahat and Nidal had furnished Libyan agents the Semtex bomb that destroyed Pan Am Flight 103 over Lockerbie, Scotland, on December 21, 1988, killing 259 on board and 11 on the ground. The 189 Americans murdered on the sabotaged Boeing 747 included 35 Syracuse University students who had spent the fall semester in Scotland and were heading home for the holidays.xi
* Before fatally shooting himself in the head with four bullets on August 16, 2002, as straight-faced Baathist officials claimed, Palestinian terrorist Abu Nidal (born Sabri al Banna) had lived in Iraq since at least 1999. As the Associated Press's Sameer N. Yacoub reported on August 21, 2002, the Beirut office of the ANO said that he entered Iraq "with the full knowledge and preparations of the Iraqi authorities."xii Nidal's attacks in 20 countries killed 407 people and wounded 788 more, the U.S. State Department calculates. Among other atrocities, an ANO-planted bomb exploded on a TWA airliner as it flew from Israel to Greece on September 8, 1974. The jet was destroyed over the Ionian Sea, killing all 88 people on board.xiii
* Coalition troops have shut down at least three terrorist training camps in Iraq, including a base approximately 15 miles southeast of Baghdad, called Salman Pak.xiv Before the war, numerous Iraqi defectors had said that the camp featured a passenger jet on which terrorists sharpened their air piracy skills.xv
"There have been several confirmed sightings of Islamic fundamentalists from Egypt, Saudi Arabia, and Gulf states being trained in terror tactics at the Iraqi intelligence camp at Salman Pak," said Khidir Hamza, Iraq's former nuclearweapons chief, in sworn testimony before the U.S. Senate Foreign Relations Committee on July 31, 2002. "The training involved assassination, explosions, and hijacking."xvi "This camp is specialized in exporting terrorism to the whole world," former Iraqi army captain Sabah Khodada told PBS's Frontline TV program in an October 14, 2001 interview.xvii Khodada, who worked at Salman Pak, said, "Training includes hijacking and kidnapping of airplanes, trains, public buses, and planting explosives in cities . . . how to prepare for suicidal operations." Khodada added, "We saw people getting trained to hijack airplanes. . . . They are even trained how to use utensils for food, like forks and knives provided in the plane." A map of the camp that Khodada drew from memory for Frontline closely matches satellite photos of Salman Pak, further bolstering his credibility.xviii These facts clearly disprove the above-quoted statements by Senator Kennedy and the Los Angeles Times and similar claims made by others. The Bush administration could advance American interests by busing a few dozen foreign correspondents and their camera crews from the bar of Baghdad's Palestine Hotel to Salman Pak for a guided tour. Network news footage of that might open a few eyes.
Saddam Hussein's al Qaeda Connections
As for Hussein's supposedly imaginary ties to al Qaeda, consider these disturbing facts:
* The Philippine government expelled Hisham al Hussein, the second secretary at Iraq's Manila embassy, on February 13, 2003. Cell phone records indicate that the Iraqi diplomat had spoken with Abu Madja and Hamsiraji Sali, leaders of Abu Sayyaf, just before and just after their al Qaeda-allied Islamic militant group conducted an attack in Zamboanga City. Abu Sayyaf's nail-filled bomb exploded on October 2, 2002, injuring 23 individuals and killing two Filipinos and U.S. Special Forces Sergeant First Class Mark Wayne Jackson, age 40. As Dan Murphy wrote in the Christian Science Monitor last February 26, those phone records bolster Sali's claim in a November 2002 TV interview that the Iraqi diplomat had offered these Muslim extremists Baghdad's help with joint missions.xix
* The Weekly Standard's intrepid reporter Stephen F. Hayes noted in the magazine's July 11, 2003, issue that the official Babylon Daily Political Newspaper published Iraqi diplomat Hisham al Hussein was expelled from the Philippines last February after cellphone records showed he was in contact with leaders of Abu Sayyaf, an al Qaeda-allied terrorist group. An October 2002 Abu Sayyaf bomb injured 23 and killed three, including U.S. soldier Mark Wayne Jackson.
AMERICAN OUTLOOK FA L L 2 0 0 3
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by Hussein's eldest son, Uday, had revealed a terrorist connection in what it called a "List of Honor" published a few months earlier.xx The paper's November 14, 2002, edition gave the names and titles of 600 leading Iraqis and included the following passage: "Abid Al-Karim Muhamed Aswod, intelligence offi- cer responsible for the coordination of activities with the Osama bin Laden group at the Iraqi embassy in Pakistan." That name, Hayes wrote, "matches that of Iraq's then-ambassador to Islamabad."
Carter-appointed federal appeals judge Gilbert S. Merritt discovered this document in Baghdad while helping rebuild Iraq's legal system. He wrote in the June 25 issue of the Tennessean that two of his Iraqi colleagues remember secret police agents removing that embarrassing edition from newsstands and con- fiscating copies of it from private homes.xxi The paper was not published for the next 10 days. Judge Merritt theorized that the "impulsive and somewhat unbalanced" Uday may have showcased these dedicated Baathists to "make them more loyal and supportive of the regime" as war loomed.
* Abu Musab al Zarqawi, formerly the director of an al Qaeda training base in Afghanistan, fled to Iraq after being injured as the Taliban fell. He received medical care and convalesced for two months in Baghdad. He then opened an Ansar al Islam terrorist training camp in northern Iraq and arranged the October 2002 assassination of U.S. diplomat Lawrence Foley in Amman, Jordan.
* Although Iraqi Ramzi Yousef, ringleader of the February 26, 1993, World Trade Center (WTC) bombing plot, fled the United States on Pakistani papers, he came to America on an Iraqi passport.
* As Richard Miniter, author of this year's bestseller Losing bin Laden, reported on September 25, 2003, on the Tech Central Station webpage, "U.S. forces recently discovered a cache of documents in Tikrit, Saddam's hometown, which shows Iraq gave [al Qaeda member] Mr. [Abdul Rahman] Yasin both a house and a monthly salary." The Indiana-born, Iraqi-reared Yasin had been charged in August 1993 for mixing the chemicals in the bomb that exploded beneath One World Trade Center, killing six and injuring 1,042 individuals.xxii Indicted by federal prosecutors as a conspirator in the WTC bomb plot, Yasin is on the FBI's Most- Wanted Terrorists list.xxiii ABC News confirmed, on July 27, 1994, that Yasin had returned to Baghdad, where he traveled freely and visited his father's home almost daily.xxiv
* Near Iraq's border with Syria last April 25, U.S. troops captured Farouk Hijazi, Hussein's former ambassador to Turkey and suspected liaison between Iraq and al Qaeda. Under interrogation, Stephen Hayes reports, Hijazi "admitted meeting with senior al Qaeda leaders at Saddam's behest in 1994."xxv
* While sifting through the Mukhabarat's bombed ruins last April 26, the Toronto Star's Mitch Potter, the London Daily Telegraph's Inigo Gilmore, and their translator discovered a memo in the intelligence service's accounting department. Dated February 19, 1998, and marked "Top Secret and Urgent," the document said that the agency would pay "all the travel and hotel expenses inside Iraq to gain the knowledge of the message from bin Laden and to convey to his envoy an oral message from us to bin Laden, the Saudi opposition leader, about the future of our relationship with him, and to achieve a direct meeting with him." The memo's three references to bin Laden were obscured crudely with correction fluid.xxvi These facts directly refute the claims of Senator Rockefeller and Secretary Albright mentioned at the top of this article. The ties between Saddam Hussein and al Qaeda are clear and compelling. Saddam Hussein's Ties to the September 11
Conspiracy
Despite the White House's inexplicable insistence to the contrary, tantalizing clues suggest that Saddam Hussein's jaw might not have dropped to the floor when fireballs erupted from the Twin Towers two years ago.
* His Salman Pak terror camp taught terrorists how to hijack passenger jets with cutlery, as noted earlier.
* On January 5, 2000, Ahmad Hikmat Shakir--Terrorist Organizations Given Funds, Shelter, and/or Training by Saddam Hussein Organization Total Total Americans Americans killed wounded killed wounded
Abu Nidal Organization 407 788 10 58
Ansar al-Islam 114 16 1 --
Arab Liberation Front 4 6 -- --
Hamas 224 1,445 17 30
Kurdistan Workers Party (PKK) 44 327 -- 2
Mujahedin-e-Khalq (MEK) 17 43 7 1
Palestine Liberation Front 1 42 1 --
Total 811 2,667 36 91
Sources:
U.S. Department of State, Office of the Coordinator for Counterterrorism, "1968 - 2003: Total
Persons Killed/Wounded--International and Accepted Incidents." Figures prepared for author
November 17, 2003.
Statistics on Ansar al-Islam:
Jonathan Landay, "Islamic militants kill senior Kurdish general." Knight-Ridder News Service, February 11, 2003.
Catherine Taylor, "Saddam and bin Laden help fanatics, say Kurds." The Times of London, March 28, 2002.
AMERICAN OUTLOOK FA L L 2 0 0 3 51
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an Iraqi VIP facilitator reportedly dispatched from Baghdad's embassy in Malaysia--greeted Khalid al Midhar and Nawaz al Hamzi at Kuala Lampur's airport, where he worked. He then escorted them to a local hotel, where these September 11 hijackers met with 9-11 conspirators Ramzi bin al Shibh and Tawfiz al Atash. Five days later, according to Stephen Hayes, Shakir disappeared. He was arrested in Qatar on September 17, 2001, six days after al Midhar and al Hamzi slammed American Airlines Flight 77 into the Pentagon, killing 216 people. Soon after he was apprehended, authorities discovered documents on Shakir's person and in his apartment connecting him to the 1993 WTC bomb plot and "Operation Bojinka," al Qaeda's 1995 plan to blow up 12 jets simultaneously over the Pacific.xxvii
* Although the Bush administration has
expressed doubts, the Czech government stands by its claim that September 11 leader Mohamed Atta met in Prague in April 2001 with Ahmed Khalil Ibrahim al Ani, an Iraqi diplomat/intelligence agent. In a February 24 letter to James Beasley Jr., a Philadelphia lawyer who represents the families of two Twin Towers casualties, Czech UN Ambassador Hynek Kmonicek embraced an October 26, 2001, statement by Czech Interior Minister Stanislav Gross:
In this moment we can confirm, that during the next stay of Mr. Muhammad [sic] Atta in the Czech Republic, there was the contact with the official of the Iraqi intelligence, Mr. Al Ani, Ahmed Khalin Ibrahim Samir, who was on 22nd April 2001 expelled from the Czech Republic on the basis of activities which were not compatible with the diplomatic status."xxviii Al Ani was expelled two weeks after the suspected meeting with Atta for apparently hostile surveillance of Radio Free Europe's Prague headquarters. That building also happened to house America's anti-Baathist station, Radio Free Iraq. The Czech government continues to claim, in short, that the 9-11 mastermind Atta met with at least one Iraqi intelligence official in the months during which the attacks were orchestrated.
* A Clinton-appointed Manhattan federal judge, Harold Baer, ordered Hussein, his ousted regime, Osama bin Laden, and others to pay $104 million in damages to the families of George Eric Smith and Timothy Soulas (clients of Beasley, the aforementioned attorney), both of whom were killed in the Twin Towers along with 2,750 others. "I conclude that plaintiffs have shown, albeit barely, `by evidence satisfactory to the court' that Iraq provided material support to bin Laden and al Qaeda," Baer ruled. An airtight case? Perhaps not, but the court found that there was sufficient evidence to tie Saddam Hussein to the September 11 attacks and secure a May 7 federal judgment against him.xxix If one takes the time to connect these dots--as is the professional duty of journalists and politicians who address this matter--a clear portrait emerges of Saddam Hussein as a sugar daddy to global terrorists including al Qaeda and even the 9-11 conspirators. As Americans grow increasingly restless about Washington's continuing military presence in Iraq, to say nothing of what people think overseas, the administration ought to paint this picture. So why won't they?
Bush Administration Needs to Educate the World on Hussein and Terror
One Bush administration communications specialist told me that the government is bashful about all of this because these links are difficult to prove. And indeed they are. But prosecuting the informational battle in the War on Terrorism is not like prosecuting a Mafia don, which typically requires rock-solid exhibits such as wiretap intercepts, hidden-camera footage, DNA samples, and the testimony of deep-cover "Mob rats." On the contrary, it is important to emphasize, as strongly as possible, that the United States need not--and in fact should not--hold itself to courtroom standards of evidence except when appearing before domestic or international judges. The administration merely has to demonstrate its claims and refute those of its opponents, not convict Saddam Hussein before a jury of his peers. Moreover, those who argue that Hussein was no terror master do not hold themselves to such lofty standards of proof, as the examples noted earlier demonstrate. The appropriate standard of evidence, then, to be entirely fair to both sides in this controversy, is not that of a trial, but rather that of a hearing on whether a criminal suspect should be indicted. In this respect, the "prosecution" defi-nitely has a prima facie case that Hussein's Iraq indeed was a haven for terrorists until the moment U.S. troops invaded. Terrorist attacks, of course, are meant to be at least as shadowy as Cosa Nostra hit jobs. Although this makes Just 15 miles from Baghdad, Salman Pak served as a Baathist training facility for terrorists. According to numerous defectors, foreign Islamic militants at Salman Pak used an actual jet fuselage to learn how to hijack airliners using knives and forks from their in-flight meals.
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Notes
i Madeleine Albright, "How we tackled the wrong tiger." Melbourne Herald Sun, October 21, 2003, page 19.
ii Anne E. Kornblut, "Kennedy to assail Bush over Iraq war." Boston Globe online, October16, 2003, .
iii Greg Miller, "No Proof Connects Iraq to 9/11, Bush says." Los Angeles Times, September 18, 2003, part 1, page 1.
iv CBS 2 homepage, "Gore Takes Aim At Bush: Former Veep Addresses New York Audience." August 7, 2003, .
v Reuters, "Hussein vows cash for martyrs." March 12, 2002. Published in The Australian, March 13, 2002, page 9.
vi The White House, "Saddam Hussein's Support for International Terrorism." .
vii Carol Rosenberg, "Families of slain Palestinians receive checks from Saddam." Knight-Ridder News Service, March 13, 2003. Published in Salt Lake City Tribune, March, 13, 2003. .
viii Facts of Israel.com, "Chronology of Palestinian Homicide Bombings." .
ix U.S. Department of State, Patterns of Global Terrorism. May 21, 2002, .
x Saud Abu Ramadan, "Call for Abbas release, also extradition." United Press International, April 16, 2003.
xi Marie Colvin and Sonya Murad, "Executed." Sunday Times of London, August 25, 2002, page 13. See also: Republican Study Committee, "American Citizens Killed or Injured by Palestinian Terrorists: September 1993 - October 2003." October 17, 2003.
xii Sameer N. Yacoub, "Iraq claims terrorist leader committed suicide." August 21, 2002 Associated Press dispatch published in Portsmouth Herald, Portsmouth, New Hampshire, August 22, 2002, .
xiii Associated Press, "Palestinian officials say Abu Nidal is dead." Posted on USAToday.com, week of August 19, 2002, .
xiv Ravi Nessman, "Marines capture camp suspected as Iraqi training base for terrorists." Associated Press, April 6, 2003, 4:14 p.m. EST. Posted by St. Paul Pioneer Press on April 7, 2003, .
xv Deroy Murdock, "The 9/11 Connection: What Salman Pak Could Reveal." National Review Online, April 3, 2003, .
xvi Khidhir Hamza, "The Iraqi Threat." Statement before the U.S. Senate Foreign Relations Committee, July 31, 2002, .
xvii PBS online, "Gunning for Saddam: Should Saddam Hussein Be America's Next Target in the War on Terrorism?" November 8, 2001, .
xviii Deroy Murdock, "At Salman Pak: Iraq's Terror Ties." National Review Online, April 7, 2003, .
xix Stephen F. Hayes, "Saddam's al Qaeda Connection: The evidence mounts, but the administration says surprisingly little." The Weekly Standard, September 1, 2003, volume 008, issue 48, .
xx Stephen F. Hayes, "The Al Qaeda Connection, cont.: More reason to suspect that bin Laden and Saddam may have been in league." The Daily Standard July 11, 2003, .
xxi Gilbert S. Merritt, "Document Links Saddam, bin Laden." The Tennessean, June 25, 2003, .
xxii Richard Miniter, "The Iraq-Al Qaeda Connections." Tech Central Station, September 25, 2003, .
xxiii Federal Bureau of Investigation, profile of Abdul Rahman Yasin on FBI's Most-Wanted Terrorists list, .
xxiv Sheila MacVicar, "`America's Most Wanted' - Fugitive Terrorists." ABC News' "Day One," July 27, 1994.
xxv Stephen F. Hayes, "The Al Qaeda Connection: Saddam's links to Osama were no secret." The Weekly Standard, May 12, 2003, .
xxvi Inigo Gilmore, "The Proof that Saddam worked with bin Laden." London Daily Telegraph, April 27, 2003, .
xxvii Stephen F. Hayes, "Dick Cheney Was Right: `We don't know' about Saddam and 9/11." The Weekly Standard, October 20, 2003, .
xxviii Hynek Kmonicek, letter to James Beasley Jr., February 24, 2003. In author's possession. A scanned image of the letter is available on the Hudson Institute's website, www.hudson.org.
xxix CBS News, "Court Rules: Al Qaida, Iraq Linked." May 7, 2003, .
---------------------------------------------

After Haiti, Venezuela is wary of US interference
The US response in Haiti has divided Latin Americans over US policy - especially in politically torn Venezuela.
By Mike Ceaser | Correspondent of The Christian Science Monitor
CARACAS, VENEZUELA - Whether Washington is a hero or hangman of democracy in Latin America may be a matter of political perspective.
Haitians watched last week as US agents whisked leftist President Jean-Bertrand Aristide off to the heart of Africa in what Mr. Aristide describes as a kidnapping. In Venezuela, President Hugo Chavez, another leftist who has antagonized Washington, has harshly accused the White House of backing coup-plotters against him. Critical of US action in Haiti, he warned the US on Friday to "get its hands off Venezuela."
The Caribbean Community, or CARICOM, an organization of mostly English-speaking nations, is calling for Aristide's departure to be investigated. More than a dozen Caribbean nations have refused to join any peacekeeping force there.
Washington has reformed from the days when it supported vicious Latin American dictatorships, but it has not embraced democracy unreservedly, says Robert Fatton, a Haitian-American professor of politics at the University of Virginia.
"There have been changes in support for democracy, but they have to be democracies that the US likes," he says.
Haitians and Venezuelans alike are divided over US actions. What Ch?vez and Aristide loyalists may consider American intrusion and coup-mongering is simply support for democracy in the eyes of many of their opponents, who have accused both presidents of ruling authoritatively and violating human rights.

Hundreds of thousands of Venezuelans marched on Saturday to protest the denial of a presidential recall vote. The demonstration was more peaceful than last week's rioting when Ch?vez critics burned tires and blockaded streets.
Protester Anais Viloria, an attorney, says he favors US involvement in Venezuela. "The United States is a guarantor of democracy," he says.
But across town at the National Electoral Council's headquarters, pro-Ch?vez demonstrators waved banners saying "CIA out of Venezuela." Security guard Otilio Bencomo charges the US with plotting to remove Chavez by any means in order to cheaply obtain Venezuela's oil.
"[Washington] wants a government which will kneel down before them, in order to take Venezuela's natural resources," he says.
Ch?vez is trying to derail the effort to hold a recall vote. Opposition organizations turned in 3.4 million signatures last December, but the electoral council ruled last week that only 1.8 million of those were valid - far below the 2.4 million required. Ch?vez opponents charge the government-dominated council with using unfair technicalities. Those whose signatures were ruled doubtful will have an opportunity to confirm their signatures during a "repair period," but the opposition claims the electoral council has set conditions designed to frustrate that goal.
The US has earned Ch?vez's ire by sending hundreds of thousands of dollars to anti-Ch?vez organizations here and by issuing a steady stream of criticisms of Ch?vez policies. On Saturday, President Bush expressed support for the referendum process.
At the same time, Washington's abandonment of Aristide has set a dangerous precedent for other leaders, Mr. Fatton says. "It generates a lot of problems for a government which was elected and becomes unpopular," he says.
In Chile, where dictator Augusto Pinochet's government murdered thou- sands of leftists - and enjoyed US backing during much of his regime - the public attitude toward Washington is moving on, says Guillermo Holzman, a University of Chile professor of politics. Chileans are dubious about the US's democratic values, he says, but for new reasons: the Bush administration's unilateral actions on issues such as the Kyoto Protocol and the war in Iraq.
"It's not clear whether [US actions] are to support democracy or protect its interests," Mr. Holzman says.
Michael Shifter, an analyst with the Inter-American Dialogue in Washington, says the White House has repeatedly fumbled - and damaged its image - in Latin America because the terror war has distracted its attention. "[A problem] reaches a crisis point and then it's too late, and Washington reacts badly," he says.
Carlos Gervasoni, a political science professor at Catholic University in Buenos Aires, says Washington's response to Venezuela's 2002 coup caused it much more damage in Latin America than did its recent actions in Haiti. In Haiti, he argues, the democratic succession was preserved following Aristide's departure. But Washington gave an extremely negative signal two years ago when it welcomed the de facto government that ousted Chavez and dissolved the constitution and parliament.
"Venezuela was the Bush administration's one opportunity to support democracy, and it didn't," he said.
But, Mr. Gervasoni says, by restricting itself to a peacekeeping force in Haiti, Washington avoided another international relations disaster in a region sensitive about its role in history as the US's backyard. "A military intervention would have been rejected in Latin America," he says. "That is Latin America's greatest fear."

* Material from Reuters was used for this report.
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The spread of nuclear know-how
How key nuclear secrets were leaked and copied all over the world.
By Peter Grier | Staff writer of The Christian Science Monitor
WASHINGTON - In the early 1970s, at a factory in the Dutch town of Almelo, the governments of Britain, West Germany, and the Netherlands were perfecting a secret uranium-enrichment technology: the ultracentrifuge.
The machines were made of precisely crafted tubes of metal that spun at fantastic speeds.
The centrifugal force this spinning created was so great it could physically separate the different isotopes of natural uranium.
Naturally, this technology was housed in a factory that was supposed to be secure.
But in practice the atmosphere at Almelo was relaxed. The centrifuge building housed a snack shop, and workers without full clearance routinely filtered through - including a well-liked Pakistani metallurgist named Abdul Qadeer Khan.
Other workers thought nothing of their repeated sightings of Dr. Khan walking through the centrifuge facility, notebook in hand.
Fast forward to 2004. Khan, who became the father of Pakistan's nuclear-weapons program, has admitted to peddling nuclear know-how for profit - and the secrets of the centrifuges of Almelo have leaked all over the world.
The characteristics of the machines can be as distinctive as fingerprints. Parts and plans related to centrifuges have proved crucial clues linking Iran, Libya, and Pakistan together in a web of nuclear proliferation.
Their dissemination is particularly dangerous because they can solve the most daunting aspect of building nuclear weapons - acquiring the fissile core.
"There is no secret to making a nuclear bomb," says Matthew Bunn, a nuclear expert at Harvard University's John F. Kennedy School of Government. "The hard part is getting the [fissile] material."
Libya has admitted to International Atomic Energy Agency (IAEA) officials that it first bought centrifuges and centrifuge parts in 1997. This initial batch - enough for at least 220 machines, according to IAEA documents - was similar in design to the first centrifuge model produced by the British-German-Dutch Urenco consortium.
Beginning in 2000, Libya set its sights on a more advanced centrifuge. This design, dubbed "L-2" in IAEA documents, was itself based on a second- generation Urenco centrifuge that uses super strength maraging steel instead of aluminum for rotors. Libya ordered parts for 10,000 L-2s. These components began to arrive in large quantities in December 2002.
Iran, for its part, has some 920 centrifuges of the less-sophisticated aluminum rotor design, according to the IAEA. It declared ownership of these machines to the IAEA last year.
But further investigation - including interviews with ex-Iranian officials - led international inspectors to suspect that Iran knew more than it was saying about advanced steel rotor centrifuges. This January Iranian officials admitted that they had received blueprints from foreign sources for advanced "P-2" machines.
The Iranians said that they decided they weren't capable of making the finely machined rotors out of steel, and instead had tried to make them from carbon composites. This failed. So they did what any backyard inventor frustrated with a balky whiz-bang might do - they threw the whole thing in the garbage.
According to Iran, after June 2003 "all of the [P-2] centrifuge equipment was moved to the Pars Trash Company in Tehran," says the IAEA's recent Iran report.
Centrifuges in the trash? Right.
The IAEA - not to mention the Bush administration - isn't buying this part of the story. They want the Iranians to talk more about what they really have in terms of P-2 equipment.
But Iran continues to insist that its nuclear program is meant only to produce electricity. Squeezing them too hard at this point might be counterproductive, say some experts. They're like someone hauled in by law enforcement for an interview who can leave at any moment, since they haven't officially been charged with a crime.
"We want them to continue cooperating with the police," says Daryl Kimball, executive director of the Arms Control Agency.
The development of gas centrifuges was an attempt to solve a problem which has dogged scientists since the beginning of the atomic age: the tremendous expense and energy involved in refining fissionable material.
The enriched uranium thus produced can be used in nuclear power plants. Urenco began its own work so that Western Europe would not have to depend on the US to supply reactor fuel, for example. But centrifuges can also produce higher enriched uranium. This, or plutonium, is the material necessary for the core of a bomb.
Clues in a technology trail
The presence of centrifuges doesn't establish intent to make weapons. But combined with other clues they can be a powerful indicator of an intention to develop a home-grown arsenal.
"The technology is inherently dual-use," says Corey Hinderstein, a senior analyst at the Institute for Science and International Security (ISIS). Thus Western intelligence agencies were suspicious of Iran as early as 13 years ago. In 1991, Italian intelligence reported that Sharif University in Tehran had ordered a sophisticated ring magnet from the Austrian firm Tribacher, according to an ISIS article.
The magnet in question was suitable for use in the upper bearing of a Urenco-like centrifuge.
Centrifuges work by spinning at a very high speed - close to or surpassing the speed of sound. Uranium gas is pumped inside the spinning cylinders.
The gravitational force is so strong that the heavier molecules of U-238, the most-common isotope in natural uranium, move toward the outside. The lighter, much rarer, and highly fissionable isotope U-235 collects closer to the center.
A stream of gas slightly enriched in U-235 is withdrawn and then fed into the next of a train of centrifuges, and so on until it becomes more than 90 percent pure.
This is simple in theory but highly difficult in practice. The precision necessary to keep intact a rotor moving at more than 100,000 revolutions a minute is at the limits of modern engineering methods.
In fact, the Urenco P-1, the base design for the first machines acquired by Libya and Iran, was never all that great, according to David Albright, head of ISIS and a former international weapons inspector.
Thus the proliferation network which provided them may have been selling off the centrifuge equivalent of bug-ridden version 1.0 software.
"The P-2 - now that worked like a charm," says Mr. Albright, former international weapons inspector.

* Faye Bowers contributed to this report.

-------------------------------------------------

US drives effort to prevent another Pakistani breach
Bush may talk Wednesday about countries that have not signed the Non-Proliferation Treaty.
By Faye Bowers | Staff writer of The Christian Science Monitor
WASHINGTON - Leakage of nuclear secrets out of Pakistan makes at least one thing clear, US experts say: Today it's more important than ever to plug such proliferation holes.
The steady drip of revelations about Pakistani scientists' activities also may call into question the nature of US relations with a country that is both an ally in the war on terror and a fount of Islamic fundamentalism.
Abdul Qadeer Khan, former head of Pakistan's nuclear program, has expressed sympathy with terror groups known to want nuclear weapons - as have some of Mr. Khan's key military supervisors.
President Bush may address these delicate questions as early as Wednesday. "It is necessary that Pakistan in general, and Khan in particular, provide every shred of information necessary to roll up this network outside of Pakistan," says Matthew Bunn, an expert on nuclear weapons at Harvard University's Kennedy School. "Locking down stockpiles of materials to make bombs is all the more critical if terrorists could have access to a bomb design."
Pakistan's reaction so far causes concern among experts. It's not at all clear, they say, that Pakistani President Pervez Musharraf will turn over information necessary to locate all the links in the chain. Nor is it clear that he will prosecute Pakistani scientists and military or intelligence officials who may have aided Khan's transfers.
The current relationship between Pakistan and the US is slightly curious, these sources say. To this point the US has been oddly restrained about the Pakistani revelations, for one thing.
"Waving the fear of an Islamic fundamentalist state isn't good enough," says David Albright, president of the Institute for Science and International Security. "We cannot risk an attack by a nuclear bomb."
Earlier this week, General Musharraf said the US made him aware of Khan's suspected proliferation activities three years ago, but didn't provide sufficient evidence until last October. That revelation follows Khan's confession that he alone was responsible for transferring technology to Libya, North Korea, and Iran, as well as Musharraf's pardon of Khan.
Still, many questions remain over who else in Pakistan may have been involved with the proliferation ring, and when the US discovered it. For example, in a speech defending the Central Intelligence Agency last Thursday, Director George Tenet said the CIA has known about Khan's activities for some time. In fact, he said he provided testimony to an open session of Congress in February 2003 about the threat posed by "private proliferators," euphemistically referring to Khan.
Mr. Tenet went on to say, "We discovered the extent of Khan's hidden network ... stretching from Pakistan to Europe to the Middle East to Asia.... Our spies penetrated the network through a series of daring operations over several years."
Those kinds of statements are what makes it hard for experts here to believe there won't be much more revealed about this underground network. And it raises the question: If the Bush administration knew about it earlier, why did it wait until October to confront Musharraf?
"Tenet is saying they knew more than what was publicly revealed," says Paul Kerr, a researcher at the Arms Control Association in Washington. "I would be willing to bet more will be revealed. [Khan] had a fairly clever clandestine network built up in this string of suppliers."
Others agree with that assessment about additional disclosures. In fact, many experts believe there had to be more complicity within the Pakistani government.
Those kinds of transfers, they say, could not have taken place without the aid of the powerful military - charged as protectors of Pakistan's nuclear program - and possibly its intelligence service.
These experts also worry about the possible transfer of plans and technology to terror groups. Khan, as well as his former military supervisors, has long been known to sympathize not only with other Muslim nations trying to obtain a nuclear weapon, but also with Islamic groups.
In a 1984 interview with the Pakistani newspaper Nawa-e-Waqt, for example, Khan accused the West of trying to dampen Pakistan's efforts to obtain a nuclear weapon. "All this is part of the crusades which the Christians and Jews had initiated against the Muslims 1,000 years ago," Khan said. He went on to say that the West was afraid that Pakistan might share its technology with Iraq, Libya, and Iran.
Moreover, the military general who oversaw Khan's work, Gen. Mirza Aslam Beg, has publicly sympathized with Al Qaeda leaders. After the US bombed Al Qaeda training camps in Afghanistan in 1998, General Beg spoke to reporters. "By the grace of God," he said, Osama bin Laden escaped the attacks. Beg has denied he knew of any nuclear technology or information transfers. But he also told The New York Times that the government "would not dare" to ask him about it.

------------------------------------------------------
No evidence: Levin's latest accusations against Pentagon blow up in his face


Washington Post debunks more of Levin's allegations.
Yet another congressional "investigation" of the administration's anti-terrorism efforts has blown up in the faces of the accusers.

The Washington Post finds no truth to the allegations, led by Senator Carl Levin (D-Mich.), that Pentagon leaders set up their own unauthorized bureaucracy to collect their own intelligence and shape the rationale for the war effort.

"Congressional Democrats contend that two Pentagon shops -- the Office of Special Plans and the Policy Counterterrorism Evaluation Group -- were established by [Defense Secretary Donald] Rumsfeld, [Under Secretary of Defense for Polich Douglas] Feith and other defense hawks expressly to bypass the CIA and other intelligence agencies," according to the Post. "They argue that the offices supplied the administration with information, most of it discredited by the regular intelligence community, that President Bush, Cheney and others used to exaggerate the Iraqi threat."

"Neither the House nor Senate intelligence committees, for example, which have been investigating prewar intelligence for eight months, have found support for allegations that Pentagon analysts went out and collected their own intelligence, congressional officials from both parties say," the Post reports. "Nor have investigators found that the Pentagon analysis about Iraq significantly shaped the case the administration made for going to war."

Levin is considered the key operator in a scandal over Senate Democrats' use of the intelligence committee for partisan political purposes.

The scandal, which has paralyzed the Senate intelligence oversight process, erupted in a scandal last fall when a memo by the staff of Senator Jay Rockefeller (D-W.V), the top Democrat on the committee, outlined a plan to use the investigative processes to destabilize the Bush administration as it tried to carry out the war on terror.
------------------------------------------------------------------

Democrats Subvert War Intelligence
Posted Dec. 22, 2003
By J. Michael Waller


Mellon, above, is using his position as Democrat staff chief on the Senate intelligence panel to undermine the leadership of Rumsfeld, Feith and Bolton.


It's one of the unsolved political mysteries of 2003: Exactly who drew up the plan for Democrats to abuse the Senate Select Committee on Intelligence (SSCI) as a stealth weapon to undermine and discredit President George W. Bush and the U.S. war effort in Iraq?

The plot, authored by aides to Sen. Jay Rockefeller (D-W.Va.), vice chairman of the committee, has poisoned the working atmosphere of a crucial legislative panel in a time of war, Senate sources say. It centered on duping the panel's Republican chairman, Sen. Pat Roberts of Kansas, into approving probes that in actuality would be fishing expeditions inside the State Department and Pentagon. The authors hoped to dig up and hype "improper or questionable conduct by administration officials." According to a staff memo, the committee then would release the information during the course of the "investigation," with Democrats providing their "additional views" that would, "among other things, castigate the majority [Republicans] for seeking to limit the scope of the inquiry."

In other words, they would manufacture and denounce a cover-up where none existed. The Democrats then would drag the issue through the 2004 presidential campaign by creating an independent commission to investigate, according to the memo.

The plan, made public by Fox News on Nov. 6, went like this: "Prepare to launch an independent investigation when it becomes clear we have exhausted the opportunity to usefully collaborate with the majority. We can pull the trigger on an independent investigation at any time - but we can only do so once. The best time to do so will probably be [in 2004]."

Even before the memo was written, Rockefeller's staff already was off on its own, well outside the traditional bipartisan channels. According to the memo, the "FBI Niger investigation" of reports that Saddam Hussein's regime had tried to buy uranium from West Africa "was done solely at the request of the vice chairman."

The plan wrecked more than two-and-a-half decades of unique bipartisanship on the SSCI, whose job is to oversee the CIA and the rest of the nation's intelligence services. In fact the SSCI, according to the Wall Street Journal after the revelation, was "one of the last redoubts of peaceful coexistence in Congress." But that bipartisanship ended last year when Democrats demanded that the committee staff be split. Instead of reporting directly to the chairman, it now was bifurcated, with Republicans answering to the GOP chairman and Democrats working for the Democratic vice chairman. Roberts didn't like the change, warning at the time that the Democrats wanted to divide the committee into "partisan camps." But the Republicans caved and the staff director of the Democrats, Christopher Mellon, built his own autonomous apparatus.

Insight has pieced together how the Democrats' fishing expedition worked. According to insiders, Mellon, a former Clinton administration official, is part of a network of liberal operatives within the Pentagon and CIA who reportedly are seeking to discredit and politically disable some of the nation's most important architects of the war on terrorism and their efforts to keep weapons of mass destruction from falling into terrorist hands. Mellon already was a SSCI staffer when the Clinton administration tapped him to work as a deputy to the assistant secretary of defense for C3I (command, control, communications and intelligence), where he was responsible for security and information operations. In the C3I office, where he held a civilian rank equivalent to a three-star general, Mellon worked on intelligence-policy issues, or in the words of a former colleague, Cheryl J. Roby, "things like personnel, training and recruiting for intelligence." The office is under the purview of the undersecretary of defense for policy, a post now held by conservative Douglas J. Feith.

Clinton-era personnel reforms allowed officials of his administration to burrow into vital Pentagon posts as careerists, administration officials say, where they have been maneuvering to keep Bush loyalists out of key positions and/or undermine their authority while pushing their own political agendas that run contrary to those of the president. This network, Insight has discovered, extends to the Pentagon's outer reaches such as the National Defense University and far-flung academic and influential policy think tanks, or "CINC tanks," serving the commanders ("CINCs") of the U.S. military theaters around the world [see "Clinton Undead Haunting Pentagon," June 17, 2002].

Senate and Department of Defense (DoD) colleagues say Mellon has a beef against Feith and Defense Secretary Donald Rumsfeld, under whom he served briefly until the new Bush administration made its full transition into office. Intelligence sources say he tried to keep conservatives out of key Pentagon posts and to undermine tough antiterrorism policies after 9/11. Back at the SSCI, Mellon's chief targets for criticism have been Feith and his like-minded State Department colleague, Undersecretary of State John Bolton, who holds the nonproliferation portfolio. Both Feith and Bolton are strong supporters of President Bush's advocacy of "regime change" for rogue states and are considered to be among the most faithful advocates in the administration of his personal policy positions.

DoD civilians loyal to the president have complained for more than two years about Mellon, both while he was at the Pentagon and at his new perch in the Senate. Upon his return to the SSCI, bipartisan staff cooperation broke down almost completely. "The parties aren't talking to one another," according to a committee source. After the memo became public, Senate Majority Leader Bill Frist (R-Tenn.) ordered an end to cooperation with the Democrats on the Iraq investigations.

Mellon's public record doesn't indicate any hard-core partisan leanings, showing instead a bipartisanship as a sometime floater on the liberal Republican side. Federal Election Commission records show he donated $1,000 to the George H.W. Bush re-election campaign in 1993 and $1,000 to the Republican National Committee in 1992. In his first tour on the Senate intelligence committee, he served as an appointee of the late liberal Sen. John Chafee (R-R.I.) when George Tenet, a Democrat who now is director of the CIA, was committee staff director. Mellon then took the C3I post at the Pentagon when William Cohen, the liberal Republican senator from Maine, became secretary of defense for Clinton.

So what might have motivated Mellon to become involved in the memo scandal to politicize the intelligence committee against the current president? Mellon did not return Insight calls for comment.

Asked whether Mellon wrote the plan, Rockefeller's spokeswoman Wendy Morigi did not attempt to exonerate the staff director. "The senator has not stated who the author of that memo is," Morigi said, "and I don't think he intends to." She spoke with Rockefeller and then called Insight again to say Sen. Rockefeller would not comment.

In any case Rockefeller, a strong liberal who had enjoyed a reputation of bipartisanship on committee matters, surprised colleagues when he allowed the Democrats on the committee staff

to use the supersecret body as a political weapon. Sources with firsthand knowledge say that Rockefeller broke the committee's bipartisan custom of requesting information from government agencies over the signatures of the chairman, representing the majority party, and the vice chairman, representing the minority.

"Rockefeller sent out his own request for information - the first time a request to the administration for information was not signed by both the chairman and vice chairman of the committee," according to a source involved with the requests. The source says the requests were worded in ways designed to elicit specific answers of a sensitive nature. When the senior Pentagon and State Department officials answered the requests, Democrats on the intelligence committee "leaked it, though some of it was top secret," the source said without citing examples.

When the targeted officials caught on to the game, Senate Democrats led by Sen. Carl Levin (D-Mich.), a scrappy SSCI member, denounced them for failure to provide Democrat senators with information about the war. They publicly acted outraged at what they alleged was a certain deception and demanded even more information, telling the press that top Bush officials were forcing the CIA and other intelligence agencies to skew intelligence analysis to fit a preconceived conclusion.

Some Democrats see through this political warfare and are troubled by it. Keeping the SSCI and its House counterpart nonpartisan, wrote former senator Robert Kerrey (D-Neb.) in the New York Post in the midst of the memo controversy, "is vital for the nation's security because much of what is done to collect, process and disseminate intelligence needed by civilian and military leaders is done under conditions of rigorously regulated secrecy." Kerrey is a former vice chairman of the committee.

"Of all the committees, this is the one single committee that should unquestionably be above partisan politics," said an angry Sen. Zell Miller (D-Ga.). "The information it deals with should never, never be distorted, compromised or politicized in any shape, form or fashion. For it involves the lives of our soldiers and our citizens. Its actions should always be above reproach; its words never politicized."

Rockefeller defended his staff and the outrageous document itself, calling it a "private memo that nobody saw except me and the staff people that wrote it for me." He rebuffed calls from Frist, Miller and others that the staffers responsible be exposed, let alone fired, and instead accused Republicans of stealing the document from his aides' computers. "Mr. Rockefeller refuses to denounce the memo, which he says was unauthorized and written by staffers. If that's the case, at the very least some heads ought to roll," declared the Wall Street Journal in an editorial. Firing Mellon as the staff director for the culprits, the Journal said, would be "a good place to start."

Miller went even further: "I have often said that the process in Washington is so politicized and polarized that it can't even be put aside when we're at war. Never has that been proved more true than the highly partisan and perhaps treasonous memo prepared for the Democrats on the intelligence committee."

The Georgia Democrat measured his words, continuing: "If what has happened here is not treason, it is its first cousin. The ones responsible - be they staff or elected or both - should be dealt with quickly and severely, sending a lesson to all that this kind of action will not be tolerated, ignored or excused."

Chairman Roberts sees a danger to the nation through such politics: "If we give in to the temptation to exploit our good offices for political gain, we cannot expect our intelligence professionals to entrust us with our nation's most sensitive information. You can be sure that foreign intelligence services will stop cooperating with our intelligence agencies the first time they see their secrets appear in our media."

Kerrey, once a shining star among Senate Democrats, wrote, "The production of a memo by an employee of a Democratic member of the Senate Select Committee on Intelligence is an example of the destructive side of partisan politics. That it probably emerged as a consequence of an increasingly partisan environment in Washington and may have been provoked by equally destructive Republican acts is neither a comfort nor a defensible rationalization."

Senate Majority Leader Frist called for the culprits to come forward and apologize, angrily announcing he would suspend cooperation on the Iraq investigation. That wasn't enough for Sen. Miller, who demanded, "Heads should roll!"

J. Michael Waller is a senior writer for Insight magazine.



Posted by maximpost at 11:55 PM EST

>> CENTRISTS...


The Vanishing Center
In both political parties, the defense of moderation is no virtue.
Monday, March 15, 2004 12:01 a.m. EST
Both major political parties are increasingly squeezing out moderates, in part because the country is so polarized, and also because each party's primary electorate is becoming smaller and more ideological. Ask John McCain, who was flattened in the 2000 Republican primaries, or Joe Lieberman, whose campaign this year for the Democratic nomination went nowhere.
Interest groups are making it clear they will punish renegade officeholders if they stray too far from party orthodoxy. In primaries in Texas and California this month, liberals flexed their muscle and defeated several Democrats who had shown an ability to work with Republicans. Next month, liberal Sen. Arlen Specter of Pennsylvania, a liberal Republican, will face what appears to be an increasingly formidable primary challenge from Rep. Pat Toomey, who has the support of antitax advocates and social conservatives.
In California, Ted Lempert, a former state assemblyman, lost the Democratic race for a vacant state Senate seat south of San Francisco. The winner, Assemblyman Joe Samilian, had the backing of unions representing prison guards and teachers. Mr. Lempert had expressed skepticism about generous union contracts, and once worked for a group that promoted charter schools.
Ideological enforcers were even more in evidence in Texas, where trial lawyers are furious at the role some Democratic state legislators played in putting Proposition 12, which capped medical malpractice damages, on the ballot last year. The measure won, 51% to 49%, and one member of the Texas Trial Lawyers Association told me his group's members planned to punish any legislator who embraced further tort reform. That effectively means Democrats, because their effort to defeat state Rep. Joe Nixon in a GOP primary failed by a 3-to-1 margin.
But liberals had more success in last week's Democratic primaries. Five Democrats who stood accused of playing footsie with Republican House Speaker Tom Craddick on various issues were either defeated or forced into runoffs. State Rep. Roberto Gutierrez was forced into a runoff for backing tort reform.
The most prominent scalp was that of state Rep. Ron Wilson of Houston, a 26-year-incumbent and chairman of the Ways and Means Committee, who lost outright. Liberals had other grievances against him stemming from his refusal to join fellow Democrats in abandoning the House floor and fleeing to Oklahoma last year in an unsuccessful attempt to block a new GOP congressional gerrymander. Rep. Glenn Lewis, a Fort Worth Democrat who also declined to go to Oklahoma, lost to Marc Veasey, a former aide to U.S. Rep. Martin Frost. Mr. Frost, in turn, is one of the Democrats most vulnerable in November owing to the GOP redistricting plan.
Some of the defeated Democrats were bitter. "I still don't think it was a good idea for Democrats who are in the minority [in the Legislature] to say we reject bipartisanship," Mr. Lewis says. "It's the only way Democrats are going to get anything."
Mr. Wilson, who is black, was even more blunt. "Because I didn't do what the white, liberal, extremist Democratic leaders wanted me to do, they're trying to punish me," he told the Houston Chronicle. "They think they ought to control the minds and hearts of every black in the Democratic Party, and if you don't do what they say, they're going to try to drag you back to the plantation like a runaway slave."
Democratic consultant Marc Campos agrees that minority legislators are held to a tougher standard of party orthodoxy than whites. He notes that former Democratic House Speaker Pete Laney backed George W. Bush for president in 2000. "Nobody punished him, nobody said anything, so it's selective and, in my opinion, it's also racist," Mr. Campos told the Houston Chronicle. "The master wants you to act a certain way, and they particularly want minorities to do it."
Republicans have their own tensions over party orthodoxy. Some moderates describe themselves as a beleaguered minority within their own party. "I don't think conservatives fully appreciate they wouldn't control the House or Senate without moderates from the Northeast," says Rep. Chris Shays of Connecticut. Conservatives say they understand electoral realities and point out that they've backed primary challengers to only two House moderates--Wayne Gilchrest of Maryland and Marge Roukema of New Jersey--both of whom held safe GOP seats. Mr. Gilchrest fended off conservative challengers by 3-to-2 margins in both 2002 and 2004. Ms. Roukema narrowly defeated conservative Scott Garrett in 1998 and 2000 and did not seek re-election in 2002.
Stephen Moore, who heads the free-market Club for Growth, says even in defeat conservative primary challenges can make a difference: "Gilchrest voted for the Bush tax cut last year knowing he'd be called to account for his stand, and Roukema gave up and retired in 2002 and was easily replaced by Scott Garrett."
Rep. Toomey's April 27 challenge to Sen. Specter, a 24-year-incumbent, is more controversial because Al Gore carried Pennsylvania in 2000. Republican backers of Mr. Specter, such as the conservative Sen. Rick Santorum, say that Mr. Toomey would find it difficult to replicate Mr. Specter's support in the vote-rich Philadelphia suburbs. Toomey backers, on the other hand, argue that the liberal voting record of Rep. Joe Hoeffel, the likely Democratic candidate, gives their man a real shot at winning in the fall. "Toomey is no more conservative than Rick Santorum, and Hoeffel is a dyed-in-the-wool liberal who just voted against a bill to protect children in the womb in murder cases like that of Laci Peterson," says one Republican state legislator.
The White House is backing Mr. Specter, following both a tradition of supporting Senate incumbents and in recognition that Mr. Specter, who is in line to chair the Judiciary Committee, has recently provided help on several of President Bush's judicial nominees. But all of that support plus a $9 million bank account hasn't allowed Mr. Specter to put the race away. Recent polls show Mr. Specter hovering at or below the critical 50% support level that denotes an endangered incumbent, and the Club for Growth has run ads highlighting how many times he has voted with John Kerry, who the Club notes was ranked last month in the National Journal's vote index as the most liberal senator.
Mr. Moore says his group seldom enters GOP primaries and then only when the incumbent violates basic Republican tenets. "Low taxes are the central linchpin of conservatism," he says. "It's possible to disagree about abortion, gay rights or the proper level of military spending, but we can't disagree about our one unifying message as conservatives."
Grover Norquist, head of Americans for Tax Reform, concurs. He notes that since President Bush's defeat in 1992, in part because he abandoned his no-new-taxes pledge, the national GOP has seen opposition to higher taxes as an easy way to brand itself with voters. Since 1990 no Republican congressman has voted to increase federal taxes.
As an incumbent, Mr. Specter remains favored to win next month, but he's clearly worried. Having taken heat for opposing President Bush's first tax cut in 2001, he switched and embraced the even more ambitious 2003 tax cut. But his record is still liberal enough to attract the ire of many conservative groups.
With Congress so evenly divided, the pressure on individual officeholders to back their party's prevailing positions on issues has become more intense. With party primaries increasingly featuring low turnout that is dominated by ideological voters--as this year's Democratic presidential contests were--you can expect more primary challenges against dissenters in the future.
The argument against such primary challenges is that moderate voters in general elections don't want candidates who deviate too much from the mainstream. But that calculation doesn't matter as much anymore, as more and more districts are gerrymandered to eliminate competitive elections. Even in competitive seats, if both parties nominate ideologues, voters who are neither conservative nor liberal may not have much choice but to go either right or left, since the middle is fast disappearing.
http://www.opinionjournal.com/diary/?id=110004821
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McCain-Feingold's Revenge
Enter the anti-Bush ads.

By Patrick Basham
Remember the old adage about not wishing too hard for something because you might get it? Today, the adage is relevant to both Republican political strategists and campaign-finance-regulation proponents. For very different reasons, both are incensed over the use of large, unregulated political donations ("soft money") from wealthy liberals to fund anti-Bush advertising and voter-registration campaigns.
Two years ago, Republicans accepted a ban on soft money as part of the most restrictive campaign-finance legislation in a generation. The soft-money spigot, turned wide open by the Clinton White House and the Democratic National Committee, once kept the Democratic party financially competitive with Republicans. Clinton strategist Dick Morris, backed by all that soft money, choreographed the political carpet-bombing, through extensive advertising, of President Clinton's Republican opponents before the 1996 election.
The Republican party, by contrast, received most of its cash from lots of small, individual donations, the only kind permitted under the new regulations. Therefore, the soft-money ban was viewed as clearly advantageous to the Republicans, especially in presidential election seasons. That made it easy for the Bush White House to abandon principle and sign the campaign-finance legislation.
In the past, campaign-finance restrictions have generated unintended and unanticipated consequences. And the latest regulatory round is no exception to this rule.
So now, Bush's enormous financial advantage over his presumed Democratic challenger, Sen. John Kerry, during the crucial pre-convention period may be eroded by the tens of millions of dollars anti-Bush groups are starting to spend on ads airing in the most politically competitive states. Hence, the Bush reelection campaign's appeal to the Federal Election Commission to rein in the president's well-funded critics.
Proponents of campaign-finance regulations, led by Sen. John McCain (R., Ariz.), had promised that we'd see less costly, less-negative campaigns better managed by the two major parties. The restrictions on free speech pushed by McCain et al were intended to reduce the power of independent political groups and special interests and return it to the candidates and their parties.
However, now that McCain-style campaign-finance regulation is a reality, the millions that may be spent on unregulated anti-Bush advertising illustrates what the campaign-finance cure-all has in fact produced. The parties and the presidential candidates have lost control of their own campaigns as a result of the soft-money ban.
Who's in the driver's seat? Special-interest groups, corporations, and labor unions who have retained previously donated soft-money funds. Prior soft-money contributions from wealthy individuals are flowing to independent campaign organizations instead of their previous destination, the national parties.
These "527 committees," named after a section of the IRS code, are exempted from the new campaign-finance regulations, most importantly the soft-money ban.
Ironically, the channeling of donations and advertising through non-party organizations will increase the number of these groups and the proliferation of non-party micro-campaigns. A large number of these campaigns will perform a series of one-off advertising attacks in specific races. These hit-and-run operations will all occur completely outside the control, but not the purview, of individual campaigns and the national parties.
The unintended and unforeseen consequences of the latest constraints on political speech serve only to further the journey of American political campaigning down a path seemingly anathema to the stated desires of the leading campaign-finance regulators. Perhaps it is time to stop looking to regulations to save our political system?
-- Patrick Basham, senior fellow in the Center for Representative Democracy at the Cato Institute, is the author of "This Is Reform? Predicting the Impact of the New Campaign Financing Regulations."

http://www.nationalreview.com/comment/basham200403150905.asp
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Balancing the Budget Within 10 Years: A Menu of Options
by Brian M. Riedl
Backgrounder #1726

February 13, 2004 | |
President George W. Bush's fiscal year (FY) 2005 budget proposes cutting the budget deficit in half over five years. Yet lawmakers are under intense pressure to enact a budget resolution that balances the budget within the 2005-2014 period. This paper provides a menu of spending targets to accomplish that objective.
The Model
Before assessing the spending requirements of a balanced budget, it is necessary to calculate a revenue projection. Revenues are projected by beginning with the January 2004 Congressional Budget Office (CBO) baseline and then incorporating President Bush's FY 2005-2014 tax proposals, such as making the 2001 and 2003 tax cuts permanent, reforming the alternative minimum tax, and creating tax-free savings accounts.1
Two different revenue projections emerge:
The first is based on revenues using a dynamic score of the President's tax cuts. Dynamic scoring acknowledges that tax relief strengthens incentives to work, save, and invest, and that the resulting economic growth and tax revenues offset a portion of the original revenue loss.
The second is based on revenues using a static score of the President's tax cuts. Static scoring assumes that tax policy does not affect economic behavior or growth. While very few economists would agree with static assumptions, lawmakers require the CBO to use them when projecting future tax revenues. (See the Appendix for spending and tax calculations.)
Using the CBO 2004 baseline estimate of $896 billion in discretionary outlays and $1,242 billion in mandatory outlays, it is possible to calculate the effects of various annual spending growth rates--both discretionary and mandatory.2 Table 1 shows which rates of discretionary spending and mandatory spending would combine to balance the budget under dynamic scoring. Table 2 shows the results for balancing the budget under static scoring.
Results
Table 1 details the spending patterns that can balance the budget by 2014, assuming that tax revenues are scored dynamically. For example, a budget that expands discretionary spending by 3 percent annually and mandatory spending by 4 percent annually would achieve balance by 2014. Two observations are immediately evident:
Most scenarios to balance the budget by 2014 require annual spending growth of approximately 4 percent or less.
The CBO baseline shows mandatory spending growing by 6 percent annually over the next decade. Yet Table 1 shows no scenario to balance the budget by 2014 with 6 percent annual mandatory spending growth. This confirms that any plan to balance the budget must reform runaway entitlements, such as the 2003 Medicare drug bill and the 2002 farm bill. Furthermore, without reform, the growth rate of mandatory spending will accelerate in coming decades.
Lawmakers will likely seek a budget resolution that balances the budget by 2014 even when revenues are scored statically. Table 2 shows the spending options to achieve the objective. Most combinations require mandatory and discretionary spending to grow by 3 percent or less per year.
Difficult Decisions Required
By comparison, discretionary spending has averaged 10 percent annual growth and mandatory spending has averaged 7 percent annual growth over the past five years. (See Charts 1 and 2.)
Bringing spending growth all the way down from these high levels will require difficult decisions. However, recent spending hikes actually translate into more opportunities for savings. The 39 percent increase in discretionary spending since 2001 has left many agencies awash in cash, and they can afford to go for a few years without another major spending increase.
Mandatory spending is now at 11 percent of the gross domestic product ($11,144 per household) for the first time in American history.3 Many of these bloated programs can afford much-needed reforms. Lawmakers can begin to move toward a balanced budget by settling on a lean spending course and then reforming the budget process to lock in those spending ceilings.
--Brian M. Riedl is Grover M. Hermann Fellow in Federal Budgetary Affairs in the Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation.
1. Reform of the alternative minimum tax is projected through 2014, even though the President's budget proposal includes an estimate of revenue only through 2006.
2. Net interest costs are also incorporated into the model. Rather than consciously selected by lawmakers, these spending levels are a residual based on the effects of each policy. See Appendix for net interest cost estimates.
3. See Brian M. Riedl, "$20,000 per Household: The Highest Level of Federal Spending Since World War II," Heritage Foundation Backgrounder No. 1710, December 3, 2003, at www.heritage.org/Research/Budget/BG1710.cfm.
? 1995 - 2004 The Heritage Foundation
All Rights Reserved.
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IRS Error Rate Still High


Written By: Daniel J. Pilla
Published In: Budget & Tax News
Publication Date: March 1, 2004
Publisher: The Heartland Institute
The January 2004 report of the Treasury Inspector General for Tax Administration [TIGTA] confirms the IRS's error rate for advice it gives at its hundreds of walk-in Taxpayer Assistance Centers (TACs) remains unacceptably high.
The report reveals the IRS provided "flatly incorrect answers 20 percent of the time." In another 15 percent of the cases, the IRS provided a "correct" answer without first obtaining the background information necessary to provide a correct answer--a serious oversight when providing tax advice.
Know Your Facts and Rules?
A father might ask, for example, whether it's legal to claim his child as a dependent on his tax return. One might simply answer yes and be correct, but only in a very broad sense. Without knowing all the facts about that child, it is very possible the correct answer for that particular father is no. For example, in a situation where the parents are divorced and legal custody of the child rests with the mother, it is not allowable for the father to claim the child as a dependent unless the mother signs a written waiver granting the exemption to the father.
The problem here is that most citizens just don't know all the rules. Consequently, citizens don't know what information to provide to the IRS as background for their question, and they have no way to ascertain whether the IRS asked sufficient questions to obtain the necessary facts.
When this kind of incomplete advice is factored in, the total inaccuracy rate rises to a troubling 35 percent.
Do Your Own Research?
One equally troubling aspect of the report indicates that in about 3 percent of the cases, IRS employees essentially told Treasury investigators to "do their own research." Rather than helping to find the correct answer to the question, the IRS simply referred investigators to publications to find the answers for themselves. Considering the often convoluted and technical nature of IRS publications, this is not only unreasonable ... it's a violation of the directives under which TAC employees are supposed to operate. Their job, after all, is to answer the questions posed by confused taxpayers, not send them off on a quest for answers potentially buried in thousands of pages of publications.
It is important to note the questions asked by Treasury investigators were not esoteric tax law inquiries. All the questions pointed at narrow, relatively simple areas of law that TAC employees are trained in and expected to know. Given this, it is reasonable to expect and demand that TAC employees get it right--period. TAC employees are not being trained adequately.
This brings up another disturbing aspect of the investigation. When TAC employees are asked a question that is outside the scope of their training, they are required by operating guidelines to refer the questions to other, more qualified, IRS personnel. However, in 31 percent of the cases, TAC employees answered questions outside the scope of their training, in violation of the regulations. So at a time when TAC employees cannot provide error-free answers to questions in areas they are trained in, they are taking stabs at answering questions in areas they are not trained in. We can only guess what the error rate is for those answers.
Will the Problem Get Worse?
The National Taxpayer Advocate's (NTA) 2003 Annual Report to Congress, released in January 2004, suggests we can expect this problem to get worse. The Taxpayer Advocate reports the IRS is "reducing the resources dedicated to providing taxpayer assistance, while at the same time, beefing up its enforcement arsenal." The result, according to the NTA, is "a declining trend in providing services" to those in need and an "increase in taxpayer burden."
Why can't the IRS get it right, even in relatively simple areas of the law? The answer is provided by former Commissioner Charles O. Rossotti, in a statement addressing the reason for the error rate in the IRS's telephone assistance function.
Said Rossotti, "Fundamentally, we are attempting the impossible. We are expecting employees and our managers to be trained in areas that are far too broad to ever succeed, and our manuals and training courses are, therefore, unmanageable in scope and complexity."
Daniel J. Pilla is a nationally known tax litigation specialist and executive director of the Tax Freedom Institute. He has written eleven books on taxpayers' rights issues and IRS defense strategies.



For more information ...

Visit Dan Pilla's Web site at http://www.taxhelponline.com.

Posted by maximpost at 10:50 PM EST
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Europol et Interpol ?voquent une op?ration majeure d'Al-Qaida
LE MONDE | 12.03.04 | 12h39
Les autorit?s espagnoles privil?gient la responsabilit? de l'ETA. Mais Interpol et Europol tendent ? attribuer les attentats de Madrid aux r?seaux terroristes issus d'Al-Qaida. Depuis plusieurs mois, une action frappant l'Europe ?tait envisag?e
Les attentats de Madrid ont suscit? une ?vidente confusion dans les rangs des sp?cialistes de la lutte et de l'analyse antiterroristes. Certains ont imm?diatement embray? sur la th?se des autorit?s espagnoles. Ils estiment que l'?volution r?cente de l'ETA, avec l'entr?e en sc?ne d'une jeune g?n?ration d'activistes form?s ? la gu?rilla urbaine et peu politis?s, exil?s pour la plupart en France o? leur nombre est estim?, sans grande pr?cision, ? "quelques centaines" selon une source madril?ne, rendait plausible l'hypoth?se d'attentats comme ceux commis jeudi 11 mars.
Richard Evans, un sp?cialiste britannique, estime, par exemple, que l'action de Madrid est "dans les cordes" de l'organisation s?paratiste basque et que, malgr? la pression des autorit?s polici?res, des cellules d'ETA restaient capables de monter une attaque de grande ampleur. Il avance pour preuve les r?cents mouvements d'importantes quantit?s d'explosifs qu'auraient organis?s des terroristes basques. Une ETA radicalis?e se pr?parait, rappelle-t-il, ? agir de mani?re spectaculaire avant les ?lections du 14 mars.
Cette analyse est en contradiction avec l'avis d'autres sp?cialistes, selon lesquels l'organisation basque est trop affaiblie pour d?velopper un sc?nario aussi complexe que celui de jeudi matin.
Dans un deuxi?me temps, d'autres sources, am?ricaines notamment, affirment que la m?thode utilis?e ? Madrid s'apparente aussi bien aux techniques du terrorisme islamiste radical qu'? celles de l'ETA, qui s'en ?tait d?j? pris ? des trains et des touristes. Richard Noble, le patron (am?ricain) d'Interpol, semble, notamment, avoir fait sienne cette th?se.
R?SULTATS D'EXPERTISES
Jurgen Storbeck, le patron d'Europol, l'office de liaison polici?re de l'Union europ?enne, a ?t?, d?s jeudi, le premier ? ?mettre quelques doutes ? propos de la piste basque, soulignant que l'analyse du gouvernement espagnol ne pouvait exclure la piste arabe, compte tenu de l'ampleur exceptionnelle de l'attentat dans les gares madril?nes.
Contact? jeudi soir, juste apr?s la revendication d'Al-Qaida parvenue au journal bas? ? Londres Al-Qods Al-Arabi, un autre membre d'Europol ?tait sur la m?me ligne. "Il faudra attendre le r?sultat d'expertises plus pouss?es mais, d?s le d?but, la piste d'Al-Qaida m'a sembl? s'imposer. Ceci dit, la fermet? de certains responsables espagnols ? d?signer l'ETA a pu troubler certaines analyses et doit nous rendre prudents", affirmait ce sp?cialiste de l'organisme europ?en.
Outre le texte de revendication, une s?rie d'?l?ments plaident contre la th?se de l'attentat basque, estime l'Esisc, un centre d'?tudes strat?giques bas? ? Bruxelles. L'ETA pr?vient g?n?ralement les autorit?s avant les explosions, revendique rapidement ses actions, s'en prend presque essentiellement ? des repr?sentants de l'autorit? et/ou ? des lieux symboliques (casernes, b?timents administratifs). Jusqu'ici, l'ETA n'a, par ailleurs, pas pratiqu? le "ciblage multiple", comme celui qui a d?vast? les trains de Madrid.
Cette technique est, en revanche, une sorte de marque de fabrique pour la n?buleuse Al-Qaida, qui l'a utilis?e ? de nombreuses reprises au cours d'actions qui lui ont ?t? attribu?es avec une quasi-certitude : aux Etats-Unis le 11 septembre 2001, bien s?r, mais aussi au Kenya et en Tanzanie (actions contre les ambassades am?ricaines en ao?t 1998), ? Riyad (35 morts dans un triple attentat en mai 2003), ? Casablanca (33 morts dans une s?rie d'attentats en mai 2003) et ? Istanbul (63 morts apr?s deux doubles attentats en novembre), ainsi sans doute qu'en Irak o?, il faut le relever, l'Espagne a, par ailleurs, d?j? ?t? vis?e, avec une embuscade tendue ? plusieurs membres des services sp?ciaux.
"Si la piste d'Al-Qaida se confirme ? Madrid, nous pourrons affirmer que nos diagnostics quant ? l'?tat de la menace en Europe, ? la fin de l'ann?e derni?re, ?taient en partie faux. Mais uniquement parce que nous pensions en fait qu'une action de grande envergure interviendrait plus t?t", affirme ce sp?cialiste d'Europol contact? par Le Monde.

Jean-Pierre Stroobants

* ARTICLE PARU DANS L'EDITION DU 13.03.04
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AL-QAIDA IN SPANIEN

Osamas neue Kriegserkl?rung

Von Matthias Gebauer
Die m?gliche Verwicklung islamistischer Fanatiker in die Anschl?ge von Madrid d?rfte die spanischen Beh?rden kaum ?berraschen. Seit den Attentaten vom 11. September wissen Terrorfahnder, dass Bin Ladens K?mpfer in Spanien eine wichtige Basis haben. Nun haben sie ihren einstigen R?ckzugsraum zum Ziel verheerender Angriffe erkoren.
DPA
Terrorf?rst Bin Laden: Drohung an Spanien und alle L?nder, die sich am Irak-Krieg beteiligen
Berlin - Video- oder Audiotapes geh?ren seit dem 11. September zur medialen Strategie der Terroristen. Immer wieder melden sie sich mit martialischen Botschaften, nehmen neue Ziele ins Visier. Dabei l?sst sich die Echtheit der B?nder selten wirklich nachpr?fen. Im Oktober vergangenen Jahres lie? ein solches Tape die Beh?rden in Europa und Amerika aufhorchen. Per Tonband meldete sich da ein angeblicher Sprecher der al-Qaida und gab den neuen Kurs der Terroristen aus - eine Generalattacke auf die westliche Welt.
Statt wie in der Vergangenheit fast ausschlie?lich nur der ?berm?chtigen USA Verderben anzuk?ndigen, drohte die Stimme nun auch L?ndern, "die sich an diesem ungerechten Krieg beteiligt haben". Gemeint war der Irak-Krieg, doch um alle Zweifel auszur?umen, nannte der Terror-Prophet auch L?nder wie Spanien oder Australien, die sich aktiv an dem Feldzug des US-Pr?sidenten George W. Bush beteiligt hatten. Die deutschen Geheimdienstler sprachen von einer neuen Qualit?t der Bedrohung.
Heute wirkt die Drohung vom Oktober wie eine Ank?ndigung des blutigen Donnerstags in Madrid. 911 Tage nach dem 11. September 2001 - und damit passend in die teuflische Zahlenlogik der Terroristen - weisen immer mehr Indizien darauf hin, dass die Krieger des Terrorf?rsten Osama Bin Laden mitten in Europa zugeschlagen haben. Der Terror der Gotteskrieger kommt pl?tzlich ganz nah heran an L?nder, in denen sich die Menschen bisher sicher f?hlten.
"Zweites Standbein der Qaida in Europa"
Sp?testen seit die Ermittler am Samstag drei Marokkaner und zwei Inder festnahmen vermutet auch die spanische Regierung islamistische Terroristen hinter den Bombenattacken, die am Donnerstag 200 Menschen in den Tod rissen und 1500 verletzten. Ob und wie die in Madrid festgesetzten M?nner mit den Attentaten zu tun hatten, ist noch offen.
Einer der verhafteten Marokkaner stand offenbar in seinem Heimatland schon l?nger unter Terrorverdacht. Der 30-j?hrige Jamal Zougam war nach Angaben eines Regierungsbeamten in Rabat einer von mehreren tausend Marokkanern, die seit dem Bombenanschlag in Casablanca im Mai vergangenen Jahres unter besonderer Beobachtung der Beh?rden standen.
Bei den Selbstmordanschl?gen auf j?dische Ziele und ein spanisches Restaurant in Casablanca kamen im Mai vergangenen Jahres 45 Menschen ums Leben, unter ihnen zw?lf T?ter. Die Beh?rden machten daf?r eine islamistische Organisation namens Salafia Jihadia verantwortlich, die zum Terrornetzwerk al-Qaida geh?ren soll.
Nach einem Bericht der spanischen Tageszeitung "El Pais" sollen die verhafteten Marokkaner Verbindungen zu "Abu Dahdah" unterhalten haben, dem inhaftierten mutma?lichen F?hrer einer al-Qaida-Zelle in Spanien.
Den Festgenommenen wird vorgeworfen, an der Beschaffung der f?r die Anschl?ge benutzten Mobiltelefone beteiligt gewesen zu sein. Die Verd?chtigen k?nnten also auch nur als gew?hnliche Kriminelle eine Rolle gespielt haben.
EFE / AP
Angeklagter "Abu Dahdah": "Den Kopf abgeschlagen"
Die baskische Untergrundgruppe der Eta war bisher die einzige in Spanien aktive Terror-Organisation, dennoch waren die Umtriebe der al-Qaida in Spanien ?rtlichen Ermittlern bestens bekannt. Seit der Rekonstruktion der Planung des 11. September wissen die Ermittler, dass die al-Qaida neben Deutschland ihr "zweites Standbein" auf der iberischen Halbinsel hatte. So wurden damals die Todesflieger aus Spanien mit P?ssen und Geld versorgt.
Haftbefehl gegen Osama pers?nlich
Nach dem 11. September gingen die spanischen Beh?rden mit aller H?rte gegen Bin Ladens Anh?nger vor und brachten erst im letzten Jahr etliche Qaida-Mitglieder vor Gericht. Das Innenministerium meldete nicht ohne Stolz neue Festnahmen von vermeintlichen Zellen und Einzelpersonen aus dem Umfeld des Terrornetzwerks. M?glich erscheint daher auch, dass die Anschl?ge von Madrid eine Reaktion auf das harte Vorgehen der Justiz - allen voran des umtriebigen Richters Baltazar Garz?n - waren.
Der Ermittlungsrichter mit einer Vorliebe f?r spektakul?re Aktionen hatte sogar f?r Osama Bin Laden h?chstpers?nlich einen Haftbefehl ausgeschrieben und den Gotteskriegern so ?ffentlich den Kampf angesagt. Gegen Bin Laden und rund zehn weitere M?nner l?uft seitdem ein Verfahren wegen Mordes im Zusammenhang mit den Anschl?gen vom 11. September 2001. Daneben will Garzon noch 35 weitere M?nner wegen der Mitgliedschaft in einer islamistisch-terroristischen Vereinigung vor Gericht stellen.
Wie gut sich Spanien als Planungsraum der al-Qaida eignete, zeigen die Ermittlungen nach dem 11. September. Vor den Anschl?gen hatte es unter den Attent?tern zwei wichtige Treffen gegeben, eines davon in Kuala Lumpur, das zweite kurz vor den Attacken in Spanien. Im Sommer 2001 trafen sich der Terror-Pilot Mohammed Atta und sein Logistiker Ramzi Binalshibh in dem spanischen Ferienort Tarragona. Atta, der bereits in den USA die Todesfl?ge vorbereitete, kam per Linienflug aus Miami. Aus Hamburg flog Binalshibh am 9. Juli ein. Mittlerweile wissen die Fahnder aus den Aussagen des inhaftierten Binalshibh, dass bei diesem Treffen "die letzten Details" f?r den t?dlichen 9/11-Plan ausgeheckt wurden.
Als Binalshibh kurz vor dem 11. September seine Flucht nach Pakistan plante, fehlte dem jungen Mann noch ein g?ltiges Reisedokument. Deshalb flog er von Hamburg nach Madrid, wo ihn Glaubensbr?der mit einem gef?lschten Pass f?r seine Reise nach Karatschi ausstatteten. K?rzlich nahm die Polizei in Spanien mehrere Personen fest, die angeblich Binalshibh diesen Pass verschafft haben sollen.
Basis f?r die Todes-Piloten
DPA
Ermittlungsrichter Baltasar Garzon: Unnachgiebiger J?ger der Qaida
Dass sich die Todes-Piloten in Spanien trafen, war kein Zufall. Dort gab es damals ein Netzwerk aktiver Islamisten, das den M?nnern um Atta und Co. dienlich sein konnte. Spuren dieser Art f?hrten schon zuvor immer wieder auf die iberische Halbinsel. Ende des Jahres 2000 beispielsweise wurde in Frankfurt eine Terroristenzelle ausgehoben, die einen Anschlag in Stra?burg plante. Der mutma?liche Anf?hrer, Mohammed Bensakhria alias "Meliani", hatte Kontakte nach Spanien, wo er von Ermittlern schlie?lich auch festgenommen wurde.
Ebenfalls ausgehoben wurde auch eine Gruppe um den geb?rtigen Syrer Imad Eddin Barakat Jarkas, genannt "Abu Dahdah". Bis zu seiner Festnahme im Herbst 2001 galt "Abu Dhadah" als Chef des spanischen Ablegers der Qaida, er soll enge Verbindungen zu Bin Laden pers?nlich gehabt haben. Hauptindizien gegen "Abu Dahdah" sind die Anrufe eines Unbekannten mit dem Namen "Shakar", der vor und nach dem 11. September in Spanien anrief. "Shakar" teilte "Abu Dahdah" im August 2001 mit, er und Komplizen seien beim Flugtraining schon gut vorangekommen. Nach dem 11. September meldete sich "Shakar" erneut und berichtete, man habe "den Kopf abgeschlagen".
Spektakul?re Kampfansagen der Justiz
Auch die Nachforschungen in Hamburg brachten die Ermittler wieder zu "Abu Dahdah". So fanden sie im Adressbuch des Marokkaners Said Bahaji, der eng mit den Todes-Piloten verbandelt war, die Madrider Telefonnummer "Abu Dahdahs". Auch als sich im Jahr 1999 beinahe alle Beteiligten an dem 9/11-Plot zur Hochzeit von Bahaji in Deutschland trafen, reiste auch "Abu Dahdah" an die Elbe, um an dem Event in der al-Quds-Moschee im Hamburger Stadtteil St. Georg teilzunehmen.
FBI/ AFP/ DPA
Terror-Logistiker Binalshibh: Flucht ?ber Madrid
Auch ein weiterer Verd?chtiger der 9/11-Anschl?ge hatte nach Erkenntnissen der Ermittler Kontakte nach Spanien. Zwar k?nnen die Fahnder dem in Hamburg ans?ssigen Gesch?ftsmann Mamoun Darkazanli strafrechtlich nichts nachweisen, doch sind sie von seiner Verflechtung in dem Umkreise der Piloten ?berzeugt. Darkazanli wiederum spielte bei diversen Geld?berweisungen eine Rolle, die letztlich ?ber mehrere Umwege und L?nder zu den Todes-Piloten flossen. Erst im Herbst letzten Jahres verhaftete die Polizei in diesem Zusammenhang mehrere M?nner in Spanien, die nun angeklagt werden sollen.
Nicht weniger gef?hrlich sind auch islamistische Zellen, die in Spanien operieren. So nahm die Polizei im Jahr 2002 den Anf?hrer einer Zelle fest, die mehr als 30 Mitglieder hatte. Anf?hrer Abdullah Khataya soll laut Ermittlungen islamistische K?mpfer, die von Bosnien nach Afghanistan oder Tschetschenien zogen, in konspirativ gemieteten Wohnungen aufgenommen haben. Zudem verschaffte er den Reisegruppen in Sachen Heiliger Krieg die Reisekasse und gef?lschte Dokumente und bereitete sie auf die neuen Aufgaben in den verschiedenen Kampfzonen vor. Immer wieder h?ren die Ermittler solche Geschichten, die Spanien als Durchreiseland f?r die globalisierten Bin Laden-Krieger ausweisen.
Fast jede Woche Festnahmen
Fast jede Woche melden die Beh?rden neue Festnahmen und Sprengstofffunde - ein deutliches Zeichen sowohl f?r die Aktivit?ten der al-Qaida als auch der spanischen Beh?rden. Meist sind die Festgenommenen nur Kuriere oder Mittelsm?nner der Zellen, doch allein die Anzahl l?sst auf ein dichtes Netz von Sympathisanten in Spanien schlie?en. Ermittler vermuten zudem, dass die in Nordafrika aktiven Salafisten immer h?ufiger Mitglieder nach Spanien schleusen, um dort aktiv zu werden. Die Festnahme der Marokkaner nach den Anschl?gen in Madrid k?nnte in dieses Bild passen.
Neben den beiden deutschen Verfahren gegen mutma?liche Helfer der Qaida bei den Pl?nen f?r den 11. September ist Spanien das einzige Land, das den Kampf gegen den Terror in die Gerichtss?le gebracht hat. Indes ist kaum anzunehmen, dass die Verd?chtigen wie in Hamburg am Ende als freie M?nner aus den Verfahren hervor gehen. Vor dem Hintergrund dieses harten Vorgehens gegen Bin Ladens Anh?nger und der US-freundlichen Haltung von Premier Aznar im Irak-Konflikt halten es Sicherheitsexperten f?r plausibel, dass Qaida-Terroristen ihren einst so angenehmen Ruheraum Spanien nun zum Ziel ihrer t?dlichen Attacken erkoren haben. Der Anschlag in Madrid k?nnte daf?r der blutige Startschuss gewesen sein.

Posted by maximpost at 12:35 PM EST
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Sunday, 14 March 2004



From Salem to Pakistan, an atomic smuggler's plot
By Farah Stockman and
Victoria Burnett, Globe Staff and Globe Correspondent, 3/14/2004
SALEM -- It looked like any other package when a mail truck carried it away from the four-story office park at 35 Congress St., along with packages from other businesses near Pickering Wharf, like the Palmer's Cove Yacht Club and the Harbor Sweets candy store.
But the contents of this particular parcel, mailed in September 2003, were so alarming that US special agents secretly tracked its journey from Salem to an office in Secaucus, N.J., on to a warehouse in South Africa, then to an air cargo shed in Dubai, United Arab Emirates, and to its final destination: a military supplier in Islamabad, Pakistan.
Inside the box were 66 high-speed electrical switches called triggered spark gaps, each the shape of a spool of thread and the size of a soda can. In small numbers, they are used in hospitals to break up kidney stones. In large numbers, they can detonate a nuclear weapon.
The story of how a box at the North Shore office of PerkinElmer Inc., one of about a dozen firms in the world that produce the switches, ended up in the hands of a supplier for the Pakistani army, provides a rare glimpse into the underworld of nuclear smuggling.
In many respects, it is a victory in the in-the-trenches battle to prevent terrorists from obtaining nuclear weapons. Tipped off by suspicious PerkinElmer employees and an anonymous source abroad, US officials arranged for the box's dangerous contents to be disabled before it was shipped, tracked the package, and arrested the alleged nuclear supplier, Israeli businessman Asher Karni.
Karni was arrested on Jan. 1 in Colorado as he flew into the United States for a ski vacation. He was charged in federal court in Washington, D.C., with violating US export laws.
But the case is also a disturbing reminder of how rare it is for a nuclear smuggler to be prosecuted. Karni seems to be the only person facing trial for selling nuclear components to a middleman in Pakistan, which is at the center of a massive international investigation into dozens of companies involved in nuclear black-market trading.
Selling dual-use technology like the switches to certain foreign companies is still legal, but it can be hard to keep the technology from falling into the wrong hands once it goes overseas, according to Ivan Oelrich of the Federation of American Scientists, a nonprofit research group that tracks arms-control issues.
Manufacturers are required by law to scrutinize their customers, flag suspicious orders, and keep track of an ever-growing list of blacklisted companies. Despite heavy fines for noncompliance, security specialists acknowledge that companies cannot catch every problem order.
"You try to catch enough of it so that you deter people," said Gary Milhollin, director of the Wisconsin Project on Nuclear Arms Control, who said two or three people each year are caught trying to smuggle items that can be used for nuclear weapons. "It's like street crime. . . . It's just a continuing battle."
Another problem is that nuclear export controls are essentially gentleman's agreements that lack the legal force of treaties and do not reach several countries that are nuclear suppliers, said David Albright, a former weapons inspector at the Institute for Science and International Security in Washington. "It's a huge problem and not much is being done," he said. "When it comes to giving penalties, they are often just very minor."
Into dangerous hands The case of the switches -- a crucial and hard-to-get ingredient for a modern nuclear weapon -- is even more disturbing because they were bound for Pakistan, a hub for nuclear smuggling to rogue nations around the world.
In January, Abdul Qadeer Khan, who helped developed Pakistan's nuclear bomb, confessed to selling nuclear technology to Iran, Libya, and North Korea. That black market will be a key issue for Secretary of State Colin L. Powell when he travels to Pakistan this week. Despite a probe of Khan's activities that uncovered dozens of middlemen and businesses around the world, few have been punished.
Karni, the 50-year-old Israeli salesman who allegedly ordered the switches from Salem, was an expert at circumventing US export controls, US prosecutors say. His South African company, Top-Cape Technology, often served as a middleman for foreign clients who were banned from buying directly from US firms, according to documents filed in his criminal case.
Karni wrote often by e-mail about how to bypass export license requirements, even lamenting the loss of business when restrictions on the sale of sensitive technology to India and Pakistan were loosened in 2001, according to e-mails submitted as exhibits in his case.
"I have not heard from you in a long time," Karni wrote to a man who procures items for India's Vikram Sarabhai Space Centre. "I guess now that the sanctions are off, you are probably going directly to the manufacturer, but I still think there must be many other opportunities [in] which we can book some orders together."
In summer 2003, Karni was contacted by Humayun Khan, a Pakistani businessman who counts the Pakistani military among his clients.
Humayun Khan, who is no known relation to Abdul Qadeer Khan, allegedly asked Karni to provide 200 triggered spark gaps -- enough, specialists say, to detonate three to 10 nuclear bombs.
Karni called companies in Europe, including PerkinElmer's sales agent in France, asking for the items, but was rebuffed, court records said. He wrote back that the sale was not possible because an export license was required.
But Humayun Khan begged him to try again. "I know it is difficult, but that's why we came to know each other," he wrote. "Please help negotiate with any other source."
Eyebrows raised in Salem So Karni approached Zeki Bilmen, of Giza Technologies Inc., a company based in New Jersey that does not face the same purchasing restrictions as a foreign firm. Karni asked Bilmen to buy the switches and ship them to South Africa, where Karni said they were needed at the Baragwanath Hospital in Soweto.
Bilmen agreed, even though specialists say a hospital would need six triggered spark gaps at most. Bilmen's lawyer, Robert Herbst, said Giza deals with thousands of products a year and did not know enough about this one to notice that the order was unusual.
In July 2003, Bilmen placed the order with PerkinElmer Optoelectronics, based in Salem, for 200 triggered spark gaps, model GP-20B, for $447 each.
But the order -- on the magnitude of a military request -- raised eyebrows in Salem, where PerkinElmer employs a specialist to monitor sales and make sure they comply with all regulations.
"It was such a huge quantity. A hospital buys one or two," said Daniel Sutherby, a PerkinElmer spokesman.
PerkinElmer contacted US officials, who told the company they already were tracking Karni's request, following an anonymous tip from South Africa, according to Sutherby.
Under the direction of special agents with the Department of Commerce, PerkinElmer moved to fill the order as though nothing was wrong. But before the first shipment of 66 switches was sent to New Jersey in September, PerkinElmer employees permanently disabled the devices.
US investigators tracked the package across three continents, until it arrived a month later at Khan's office in a run-down commercial complex in Islamabad. For the last leg of the journey, the package was labeled "scientific equipment" and addressed to "AJKMC Lithography Aid Society." No public record could be found in Pakistan of such an organization.
David Poole, a special agent with the US Department of Commerce, told the court he thinks AJKMC Lithography Aid Society is an organization that prints copies of the Koran. In other court documents, US investigators say "AJKMC" are the initials of the "All Jammu and Kashmir Muslim Conference," a Pakistani opposition party that supports extremist fighters in Kashmir, a disputed terroritory between Pakistan and India.
Lack of punishment In a recent interview with the Globe, Humayun Khan said he had no idea why the package had been shipped to his street address or what AJKMC Lithography is. He also denied ever having seen the package and said he knew nothing about it.
He acknowledged that he had dealt with Karni on the attempted purchase of sensors to guide aircraft and wireless communications equipment, but denied buying the switches. He said the flurry of e-mails sent in his name had come from a rogue employee who has since disappeared. Khan said he has been put on a blacklist by the US Commerce Department and is no longer able to import goods from the United States, a restriction he called rash and unfair.
Karni was arrested Jan. 1 when he flew to the United States for a ski vacation with his family, and was released on bail into the supervision of a Maryland rabbi. His lawyer, Alyza Lewin, declined to comment on his case.
Others accused of involvement in underground nuclear sales to Pakistan have avoided harsh penalties.
Even Abdul Qadeer Khan, who confessed to helping three countries pursue a nuclear bomb, has been pardoned by Pakistan's president and allowed to keep the money he made from the deals.
Milhollin said the lack of punishment is outrageous because the wares that nuclear smugglers sell threaten the lives of far more people than the act of an ordinary criminal: "They are basically businessmen. They sit down and calculate their risks. If you raise the chances of conviction, they are going to alter their behavior."
Back at PerkinElmer in Salem, many feel their role in solving the case is just part of the business. "Employees talked about the incident around the water coolers for a day or so," Sutherby said. "But then everyone went back to their daily routines."
Victoria Burnett reported from Islamabad. Ross Kerber of the Globe staff contributed to this report. Farah Stockman can be reached at fstockman@globe.com.

? Copyright 2004 Globe Newspaper Company.
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U.S. Widens View of Pakistan Link to Korean Arms
By DAVID E. SANGER

WASHINGTON, March 13 -- A new classified intelligence report presented to the White House last week detailed for the first time the extent to which Pakistan's Khan Research Laboratories provided North Korea with all the equipment and technology it needed to produce uranium-based nuclear weapons, according to American and Asian officials who have been briefed on its conclusions.
The assessment, by the Central Intelligence Agency, confirms the Bush administration's fears about the accelerated nature of North Korea's secret uranium weapons program, which some intelligence officials believe could produce a weapon as early as sometime next year. The assessment is based in part on Pakistan's accounts of its interrogations of Abdul Qadeer Khan, the developer of Pakistan's bomb, who was pardoned by President Pervez Musharraf in January.
The report concluded that North Korea probably received a package very similar to the kind the Khan network sold to Libya for more than $60 million -- including nuclear fuel, centrifuges and one or more warhead designs.
A senior American official described it as "the complete package," from raw uranium hexafluoride to the centrifuges to enrich it into nuclear fuel, all of which could be more easily hidden from weapons inspectors than were North Korea's older facilities to produce plutonium bombs.
In the report, Mr. Khan's transactions with North Korea are traced to the early 1990's, when Benazir Bhutto was the Pakistani prime minister, and the clandestine relationship between the two countries is portrayed as rapidly accelerating between 1998 and 2002. At the time, North Korea was desperate to come up with an alternative way to build a nuclear bomb because its main plutonium facilities were "frozen" under an agreement struck with the Clinton administration in 1994. North Korea abandoned that agreement late in 2002.
But the new assessment leaves two critical issues unresolved as the Bush administration attempts to use a mix of incentives and threats to persuade North Korea to dismantle its nuclear program, so far with little success.
American intelligence agencies still cannot locate the site or sites of any North Korean uranium enrichment facilities, meaning that if the six-party negotiations over the North's nuclear program fail, it would be virtually impossible to try to attack the facilities, which can be hidden in tunnels or inside mountains, undetectable by spy satellites.
American intelligence has also been unable to forecast exactly when the new facilities would be able to produce enough uranium to make a nuclear weapon. It takes several thousand centrifuges to efficiently produce enough uranium to make a nuclear weapon, but North Korea may only be assembling a few hundred a year.
"The best guess is still in the next year or two, but it is a guess," said one senior United States official with access to the new intelligence report. "That does not leave much time to find this thing and shut it down."
China has told the Bush administration that it believes North Korea is much farther away from creating a uranium bomb, and Chinese officials have dismissed the American concerns with references to mistakes made by American intelligence agencies in assessing Iraq's nuclear program and Saddam Hussein's reputed program to produce biological and chemical weapons.
But North Korea is a very different case. It developed its plutonium program in plain view of American satellites; it is believed to already possess two or more nuclear weapons; and it has bragged about its efforts to produce more.
The C.I.A.'s conclusions about North Korea's uranium were presented to senior White House officials, including the national security adviser, Condoleezza Rice, in a series of briefings on March 4 and 5. That followed an inconclusive second round of negotiations involving the United States, North Korea, China, Japan, South Korea and Russia that produced agreements to hold more meetings but no commitment by North Korea to dismantle its nuclear program.
It is unclear whether President Bush, who has been deeply involved setting the strategy concerning North Korea but rarely discusses the issue in public, has yet personally received the new assessment.
The assessment is based partly on interviews that Pakistani officials have held with Mr. Khan and his associates from the Khan Research Laboratories. But so far, American officials have had no direct access to the Pakistani scientist, who is regarded as a hero in his country.
"What we are getting is second-hand accounts, which means the Pakistanis may be editing it," said one senior American diplomat.
The United States, in turn, is declining to disclose some details of its new assessment to some of its closest allies, including Japan, which has asked Pakistan to give it a separate set of briefings about Mr. Khan's confession.
The unusual American reluctance to share its full intelligence findings has led several senior Asian officials, in interviews in recent weeks, to speculate that the assessment is particularly sensitive because the lengthy timeline of transfers it describes inevitably leads to the conclusion that the Pakistani military was a major partner with Mr. Khan.
The evidence suggests that North Korean scientists worked at the Khan Laboratories in the late 1990's, ostensibly on missile technology, and that several of the critical shipments to Pyongyang, the North Korean capital, took place on Pakistani military cargo planes.
According to two officials with access to the intelligence at the time, American spy satellites repeatedly took photographs of Pakistani cargo planes on the tarmac at an airfield in Pyongyang. At the time, many officials believed the cargo planes were picking up parts for North Korean missiles; it was unclear whether they were also unloading material intended for North Korea.
But even then, one of the officials said, "we suspected there was a quid pro quo, and there was a lot of speculation on the nuclear side. But there was no evidence."
The issue is particularly sensitive for Mr. Bush and Mr. Musharraf. Despite the mounting evidence, the White House has decided not to challenge Mr. Musharraf's contention that the Pakistani military was never involved in nuclear transfers to North Korea, and that he was never personally aware of them.
Although Mr. Bush has vowed to pursue and prosecute those who spread nuclear weapons technology, the administration did not criticize Mr. Musharraf when he decided to pardon Mr. Khan, who ran what now appears to be one of the largest nuclear proliferation networks in the past half-century.
Administration officials have conceded that their decision was rooted in pragmatism: Mr. Musharraf's assistance was critical in the search for Osama bin Laden and other leaders of Al Qaeda. Mr. Bush decided, they said, that the search for the Qaeda leader must take priority over pressing Pakistan to hand over Mr. Khan and even over investigating the role of the Pakistani military.
The classified report is largely a history of the Khan Laboratories' dealings with North Korea, a relationship that dates back to the early 1990's. Many of those early dealings concerned importing North Korean missile technology to Pakistan, which needed long-range missiles that could reach virtually all parts of India. That Pakistani goal has now been reached, partly because of North Korea's help.
The report also detailed how Mr. Khan, who was already selling nuclear components to Iran, converted the relationship to that of two-way trade. By the late 1990's, he was sending raw uranium hexafluoride to North Korea directly from the Khan laboratory. North Korea also obtained parts for manufacturing its centrifuges, intelligence officials said, from some of the same factories and middle-men that supplied Libya.



Copyright 2004 The New York Times Company
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INTRUDERS IN THE HOUSE OF SAUD, PART II
A Nation Unto Himself
By JENNIFER SENIOR

If, in the future, the war on terrorism is fought in the orderly confines of the courtroom and not just in the caves of Tora Bora, then incriminating documents could become the equivalent of smart bombs. Ronald L. Motley, who has made a career of coaxing such documents from the shadows, made this clear in our very first phone conversation, during which he could barely contain his delight. ''Have you heard of Mohammed Fakihi?'' he demanded, in a drawl rich enough to fill a doughnut. ''Investigated by the German police?''

Well, no --.

''That fella had a computer,'' he continued. ''And do you know what I did with that computer?''

He allowed a capacious pause.

''I'll tell you what I did,'' he said. ''I bought it.''

As a trial lawyer, Motley thinks of terrorism not just as a form of war, but as a business -- a depraved, ruthlessly efficient business, whose financiers must be exposed and held accountable for their role in sowing harm. In the case of Sept. 11, Motley, like many in the American intelligence community, concluded that the 19 hijackers would never have been able to carry out their plans without generous Saudi assistance. Nineteen months ago, he filed a civil lawsuit in federal court in Washington charging that a wide variety of parties from the kingdom sponsored the attacks, either directly or indirectly, by making donations to institutions that they knew fostered terrorism. Among the case's 205 defendants are seven Saudi charities, including the largest in the Muslim world; three Saudi financial institutions, including one that is now state-run; dozens of prominent Saudi individuals; and perhaps most audaciously, several members of the royal family, for whom Motley has a rich assortment of epithets. Though Motley is not the only tort lawyer in the United States to have filed an international lawsuit in connection with Sept. 11, his case is by far the largest and most lavishly financed of its kind: he has already spent more than $12 million, most of it his own money or his firm's, investigating the case. The families of 1,667 people who died that day, as well as 1,197 men and women who sustained injuries, have signed on.

With all due respect, I asked Motley, how did he, rather than the F.B.I. or the C.I.A, gain custody of Fakihi's computer?

''Well, think about it this way,'' he said. ''If you had information -- a computer hard drive, a Mullah Omar document or whatever your currency might be -- would you necessarily want to give it to the F.B.I.? Why, you might wind up in Guantanamo Bay. Which is not a pleasant place to be, I understand.''

Nor does it hurt, one imagines, that when it comes to procuring the hard drives of individuals with potentially valuable information, Motley is willing to pay a handsome fee. (Though in this case, the seller, who Motley said was on the lam, charged only $4,000, on the condition that Motley's people also take his car off his hands.)

Motley built a successful legal career by winning quixotic lawsuits -- first against asbestos companies, which made him an extravagantly wealthy man, and then as a central player in the huge, 46-state case against Big Tobacco, at a time when going after cigarette manufacturers was a demonstrable route to bankruptcy. But whatever risks he took in suing multibillion-dollar corporations pale in comparison to this terrorism case. In trying to use domestic courts to redress the problem of global terror, Motley is potentially subverting, or at least opening to redefinition, the very notion of diplomacy. He and his clients are effectively acting as their own nation. This is naturally worrisome to international-relations professionals, who wonder whether profit-seeking trial lawyers have the legitimacy, expertise or proper motivations to be making foreign policy. ''That's why we have a government,'' said Sean D. Murphy, who served as a State Department lawyer from 1987 to 1998. ''It's elected to make some of the hard calls about how to handle foreign countries.''

That may be so. The problem, as Motley sees it, is that sometimes governments are not in the position to make those hard calls, whether it be for political or for commercial reasons. So instead, they make easy ones. They resort to gentle persuasion, and their pleas fall on deaf ears. ''Since 1999,'' Motley said later, ''officials at the highest levels of our government have tried repeatedly to warn the Saudis about terrorism funding. And what did they do? They ignored them.''

He took another dramatic pause.

''Which is why our defendants,'' he concluded, ''ought to be held accountable in an American court.''


Unlike most of the litigation filed in the aftermath of Sept. 11, which involves a fairly traditional body of laws and assumes a predictable pattern (the victims' families suing the airlines suing the insurers), the sweeping antiterrorism case brought by Ron Motley relies on new and evolving legal terrain, and its key defendants live in a Muslim monarchy halfway around the world. The United States also happens to consider this monarchy an ally, no matter how imperfect it may be. While Motley is aiming at other foreign parties, too, and while he is not suing the kingdom of Saudi Arabia itself, he is making a rather provocative statement by going after the kingdom's prominent citizens, banks and even some of its leaders. The State Department, while not formally weighing in against the suit, is watching it warily: the last thing it desires is the transformation of the American legal system into a blunt instrument of foreign policy. Bankrupting terrorism is certainly a national priority, even an urgent one, but hardly the task the diplomatic corps wants to entrust to a man who once, during closing arguments, wore a toy stethoscope in court.

Motley insists, frequently and not always convincingly, that he doesn't mean to make a national nuisance of himself; he is simply trying to address a fundamental injustice. Why, in the context of terrorism, should the needs of the state be privileged above the rights of the victims? Or, put another way, why should the flesh-and-blood targets of terrorist attacks -- the deceased and the bereaved -- take a back seat to the less tangible target, the state?

''Going through the court system and trying to take their money is the only recourse I have,'' explained Deena Burnett, the first client to sign on to Motley's suit. Her husband, Thomas, was on United Airlines Flight 93, which crashed into the empty field in Shanksville, Pa. ''I can't join the military. It would be impractical for me to go abroad. But if I can put a stranglehold on their finances,'' she said, ''it assists our president in the war on terrorism.''

Whether George W. Bush is grateful for her assistance is another matter. As Motley, a generous donor to the Democratic Party, is fond of pointing out, the president's ties to the Saudi kingdom are personal as well as political: his father, George H.W. Bush, was until recently a senior adviser to the Carlyle Group, an investment firm that counted bin Laden family members among its investors until October 2001. James Baker, whom Bush recently sent abroad seeking help to reduce Iraq's debt, is still a senior counselor for the Carlyle Group, and Baker's Houston-based law firm, Baker Botts, is representing the Saudi defense minister in Motley's case.

Yet however committed a Democrat Motley might be, Burnett v. Al Baraka Investment and Development Corporation, as the case is known, could hardly be described as a partisan crusade. Allan Gerson, a Washington lawyer and Motley's co-counsel, worked in the Reagan Justice Department. Private legal actions against terrorist financiers also have the support of a number of prominent Congressional Republicans, who have shown dwindling patience with the Bush administration's gingerly approach to Saudi diplomacy. Senator Arlen Specter, the Pennsylvania Republican, strongly supports Motley's investigation. Charles Grassley, an Iowa Republican and chairman of the Senate Finance Committee, was one of the original proponents of the legislation Motley is relying on for his case. In December, Grassley sent a sternly worded letter to the Treasury Department, demanding to know why the United States was slower than Europe to freeze certain Saudi assets. Last July, Richard Shelby, an Alabama Republican and former chairman of the Senate Intelligence Committee, publicly chastened the administration for classifying 28 pages reportedly about the Saudis from a Congressional report on Sept. 11.

Recently, I asked Shelby if he was nervous that Burnett might complicate life for the president. His answer was blunt. ''If Ron Motley can help unravel the mystery of a lot of terrorist financing,'' he said, ''I don't care who the president of the United States is. Or where the trail leads.''

Assuming the answer is Saudi Arabia, what does that make Motley's case, exactly? A glorified, globalized tort suit? Or an example of a new wartime jurisprudence, one that fights terrorism with lawyers as well as guns and statesmen? The answer, in a sense, is both, and it could be the new way of the world. Those who take a dim view of Motley's work, dismissing it as nothing more than worldwide ambulance chasing, will be startled to learn that it is theoretically possible, in today's borderless society, to follow a screaming siren all the way to Riyadh. ''Telling U.S. courts not to evaluate international tort claims is like King Canute telling the tide not to come in,'' said Harold Hongju Koh, the international law expert and next dean of Yale Law School. ''I'm sorry, but the sun is coming up tomorrow, and it's called globalization.''


Last fall Motley stood at a podium of a hotel conference room in suburban Virginia, addressing a large gathering of families of airline-disaster victims. ''Let's pick on the Saudis for a moment,'' he said, grinning as the C-Span cameras rolled. He's regulation height, with a face that reddens easily and hair that's prone to feathering behind his ears. ''I loooove,'' he continued, ''to pick on the Saudis.''

Motley, 59, is usually a dervish of energy and restless tics. His eyes dart and his fingernails tip-tap; in conversation he regularly interrupts himself. But not here. As soon as he stands before a crowd, armed with a PowerPoint presentation and a linear legal argument, that energy field of mayhem disappears.

''I think,'' he said, ''that we should be very angry with the Saudis.''

In order to justify his latest legal undertaking, Motley must establish that the Arabian Peninsula is the fund-raising capital for merchants of terror. Though the allegation has always drawn adamant denials from the Saudis -- their Washington embassy refuses to comment on Motley's case -- it is not, from the intelligence-community point of view, a particularly controversial point. In the months after Sept. 11, Treasury and National Security officials appeared before Congress, declaring Saudi Arabia the epicenter of terrorism financing. (This, in fact, was the precise phrase used by David Aufhauser, a former general counsel to the Bush Treasury Department who was also chairman of the National Security Council's committee on terrorist financing.) Perhaps the most scathing declaration on the subject appeared in a report from the Council on Foreign Relations, issued 17 months ago: ''It is worth stating clearly and unambiguously what official U.S. government spokespersons have not. For years, individuals and charities based in Saudi Arabia have been the most important source of funds for Al Qaeda, and for years the Saudi officials have turned a blind eye to this problem.''

While Motley suggests that Saudi money occasionally takes a direct path into Al Qaeda's coffers -- generally via wealthy individual donors -- it more frequently takes a circuitous route, either through the clean-and-rinse cycle of quasi-legitimate businesses or, more commonly, through a highly complex web of Muslim charities, which receive a steady stream of alms from both individuals and Saudi banks. Some of the charities named in Motley's suit are already the subjects of federal criminal investigations. But others, like the Muslim World League, are highly esteemed in the Arab world.

''Here's how I would explain to a jury all this legal mumbo jumbo,'' Motley told the crowd in the hotel conference room. The graphic behind him changed to a cartoon of heaving smokestacks and tangled pipes. ''This,'' he said, ''is a terrorist factory. Let's call it Al Qaeda Inc. And those smokestacks are spewing out terror, hatred, jihad, suicide bombers. So who's liable if you've lost a loved one to Al Qaeda Inc.?'' He looked around. ''It's the bank that loaned the money. It's the architect who designed the factory, knowing it was going to be spewing out hatred. It's the suppliers who supplied the factory with ingredients to manufacture terrorist acts. They're all responsible, each and every one.'' He thumped the podium. ''That's the law of the United States.''

Congress has indeed passed several antiterrorism laws over the last dozen years. In 1992, it enacted a law that said terror victims could sue for civil damages; in 1994, it explicitly criminalized providing ''material support'' for terrorist activities, making sure the definition included not just money but also lodging, training, personnel, telecommunications equipment, false documents, safe houses, transportation -- as broad a range of terrorism services as the authors of the bill could identify. In 1996, Congress also made it possible to file civil suits against foreign governments identified by the State Department as sponsors of terrorism.

The problem with these statutes -- particularly those involving ''material support'' -- is that they are vague, largely untested and now being challenged partly on First Amendment grounds. For now, Motley is relying on just a handful of precedents to make his case, hoping they aren't overturned along the way. The most important emerged from the Seventh Circuit in the summer of 2002, when the appeals court refused to dismiss a case against several American-based institutions alleged to have contributed to the Palestinian militant group Hamas; the court declared that the institutions could, under certain circumstances, be held liable for the Hamas killing of an American student, David Boim, in the West Bank, even if the charities had nothing to do with the specific planning of the murder. ''Civil liability for funding a foreign terrorist organization,'' the opinion stated, ''does not offend the First Amendment so long as the plaintiffs are able to prove that the defendants knew about the organization's illegal activity, desired to help that activity succeed and engaged in some act of helping.'' The case, commonly known as Boim, is now in federal court in Chicago.

Of course, with a case involving 205 defendants, many of them armed with the finest legal representation that money can buy, Motley can expect a world's worth of obstacles before Burnett ever gets that far. There will be motions to dismiss, extensions, delays -- all manner of procedural jujitsu that will probably keep the case going for years. Perhaps the biggest procedural obstacle of all is the question of jurisdiction: unlike Boim, Motley's case goes mainly after parties abroad. While collectively they have substantial American assets, it's unclear whether American courts will feel comfortable asserting jurisdiction over them. ''The courts,'' Gerson said, ''have to become involved in dealing with the reality of foreign affairs.''

From behind the podium, Motley told the audience that he was about to run what he said was a surveillance video made in 1997 by the Madrid Qaeda cell. He warned it would be chilling. ''When we intervened with the Spanish prosecution of this case,'' he explained, ''the judge gave it to us.''

For Motley, Burnett is a case not ultimately about foreign policy but about facts, which means that proving his defendants knowingly provided material support to terrorists is his other significant legal challenge. For the last two years, he has bankrolled a worldwide intelligence-gathering operation that makes the discovery process, ordinarily marked by subpoenas and dry depositions, read like a Tom Clancy novel. One process server he hired, he told me, disappeared in Saudi Arabia. Motley himself has received death threats, prompting him to hire a 350-pound former Army sergeant, the same bodyguard who accompanied him during the tobacco years.

Around the globe, Motley has hired 10 foreign ''informants'' -- including a former Taliban official -- whom he insists on referring to by code names (Arnold, the Albanian, the Muslim, Top Source). He has also hired Jean-Charles Brisard, a French intelligence expert, to persuade foreign governments to cooperate with his suit. Brisard is the author of the European best seller ''Forbidden Truth,'' which posited that before Sept. 11 the Bush administration tried to coerce the Taliban into surrendering Osama bin Laden in exchange for a lucrative oil pipeline.

Motley asked his assistant to show the video. The footage at first looked like any tourist video -- a busy Manhattan streetscape, food vendors and people whizzing by, a seemingly reverential shot of the green sign that says Wall Street. Then the camera slowly panned up and down the length of the World Trade Center, while a voice spoke in Arabic. The subtitle translated: ''I'll knock them all down.''


From the very earliest days of his career, Motley showed the kind of passion, cocksureness and hallucinatory sense of possibility that have long made trial lawyers a metabolically distinctive species. He lived on credit cards, spent weeks on the road, drank hard in the evening and jogged long in the morning. He took on projects that seemed like surefire losers, sometimes to the utter disgust of his colleagues. To this day, said his partner, Joe Rice, ''Ron just assumes there'll be money there to pay the bills.''

Yet few who know Motley, including his adversaries, would dispute his talents as a lawyer. He thinks quickly, possesses a gift for making difficult concepts accessible and can quote, almost verbatim, documents and testimony he read months before. In the courtroom, he lurches between ruthlessness and shameless vaudeville but still manages to endear himself to juries, probably because his antics -- like bringing water guns to court -- provide relief from the undertaker-sonorousness of most defense lawyers. Slowness he finds infuriating, especially these days, as he waits for documents from his more leisurely and bureaucracy-prone counterparts in Europe. (''They meet more often than the elders of the Church of the Nazarene,'' Motley complained. ''And probably get less done.'')

But underneath the comedy runs a hard streak of determination. ''With Ron, there's this huge sense of wanting to beat the pants off Goliath,'' said Paul Hanly, a New York lawyer also working on the Burnett case, who in previous years opposed Motley as a defense attorney. ''And then there's this whole populist thing -- that he's up against the Republican-funded, blue-chip, white-shoe Wall Street law firms who wouldn't have hired him as a paralegal when he graduated from law school.''

Motley grew up in North Charleston, S.C. From the time he was tall enough to reach the nozzle, he pumped gas at his father's service station in a mostly black, working-class section of town. He attended the University of South Carolina, had a brief stint as a high-school history teacher, then returned to the university for law school. His ascent after graduation was swift. He had his own name on the law-firm door by 1975. He became the youngest president of the South Carolina Trial Lawyers Association in 1977. During the early 1980's, he formed an archipelago of agreements with law firms around the country, trying asbestos cases by the dozen. Then, in 1993, the Mississippi attorney general, Michael Moore, recruited Motley and a handful of other lawyers to lead an improbable assault against Big Tobacco on behalf of his state. The case ultimately swelled into a gargantuan project involving dozens of plaintiffs' lawyers representing 46 states and five United States territories. Motley's firm represented 25 government entities and, in a remarkable settlement in 1998, secured $246 billion for them over the course of 25 years.

Motley's firm reaped an estimated $2 billion in fees from the tobacco settlement, too, but the money seemed only to fuel an already festering tension between Motley and his partners. As he was gambling on Big Tobacco, they were toiling away on less risky, less glamorous cases, trying to keep the firm solvent. Then Motley started talking about 9/11 litigation, even though he'd never tried a single international case in his life. The partnership, Ness, Motley, Loadholt, Richardson & Poole, dissolved in 2002. Motley and Rice went on to form their own firm, based in Mount Pleasant, S.C.

Motley's fans concede that to know him is to appreciate his pandemonium, but he also has a quieter side. ''He has this reputation for being a brash, successful plaintiffs' lawyer,'' said Marc Kasowitz, who faced Motley in the tobacco years as a lawyer for the Liggett Group. ''But in person, he's very straightforward, actually, and sort of a sensitive guy.'' During the asbestos years, Rice recalled, Motley took breaks from his depositions of witnesses with lung disease to go outside and cry.

Opportunistic and compassionate, bombastic and fragile, undisciplined and focused -- it's a binary personality code that applies to a lot of successful people, and it applies rather vividly to Motley, who for all his bluster still stands with the sloped posture of someone who's both heartsick and disappointed in himself. He is three times divorced, admits he still drinks more than he should and now regrets, in ways he could hardly have imagined, that he saw too little of his two children as they were growing up. When Thomas Burnett's father phoned in the winter of 2001, inquiring about a potential Sept. 11 lawsuit, what drew Motley in were doubtless the same things that always did -- money, publicity, outrage, intellectual sport. But there was something else, too, and that was a terrible sense of identification: his own 28-year-old son, Mark, had died just 10 months before, following experimental surgery for epilepsy. When he met the Burnetts in person three months later, he told them so.

''Understand, it's not like I use it as a marketing tool,'' Motley told me. ''But people who haven't been through it, they don't know what it's like to be in the fog of death.'' He was silent for a second. ''Like I'm told I did my son's eulogy. I'm told I got up that morning, wrote it out and never read from a script. I'm told that it was the most eloquent thing anybody's ever heard. And I don't remember a word I said.''


Twitching his eyes and bouncing his knees, Motley sat in the pillowed corner of a common room at the Pentagon City Ritz-Carlton last October, drowning in his own adrenaline. He was preparing for a hearing in Washington the next day, during which a judge was to entertain motions to dismiss the two highest-profile defendants in his case: Prince Turki al-Faisal, the former head of Saudi intelligence, and Prince Sultan bin Abdel Aziz, the Saudi minister of defense.

''Say,'' he shouted to a colleague. ''Have you gotten that memo on the Prince of Baloney yet?'' Motley was referring to Prince Turki, whom he also once referred to on television as ''Prince Cooked Goose.'' He turned and elaborated. ''Turki gave a speech last night and labeled our charges baloney. So now we have a new name for him.''

Gerson, rabbinical and elegant in a three-piece suit -- Motley was in sweats -- gently admonished him, suggesting that perhaps he ought not call the princes names.

As a trial lawyer, Motley is a generalist. Though clearly important to him, Burnett ultimately amounts to another chapter in a long and varied career. The same cannot be said of Gerson. Thoughtful, arrogant and tangibly intense, he has spent most of his adult life contemplating the relationship between individuals and nations -- first as chief counsel to the American delegation to the United Nations under Jeane Kirkpatrick, then as a lawyer in the Reagan Justice Department working on international affairs. When Gerson discusses Burnett, he talks in sweeping, conceptual terms, not tactical ones. His attitude toward the case borders on the messianic.

Like many specialists in international law, Gerson said he believes that domestic courts have a role to play in holding foreign parties accountable for their misdeeds. He came of age as a doctoral student at Yale under the tutelage of Myers McDougal, the eminence grise of international law, who preached that lawyers had a legitimate role in advancing political objectives. As soon as he entered the private sector, he began to put this philosophy into practice, becoming the first lawyer to file a civil suit against Libya for the bombing of Pan Am Flight 103 over Lockerbie, Scotland. Shortly after Sept. 11, he had an idea for a similar suit aimed at Saudis. A colleague introduced him to Motley in the spring of 2002, at the private-jet area of Dulles airport, where Motley had diverted his plane in order to meet him. Having already agreed to represent the Burnetts, Motley was digging a tunnel in the same direction. The two men -- a Democratic trial lawyer and a neoconservative Reaganite -- made a verbal agreement that afternoon.

What Gerson sees in Burnett is the perfect opportunity for the judiciary to play a critical role in the war on terror, punishing those enemies of the United States that the executive branch, hamstrung by diplomatic considerations, cannot. ''If we left justice solely to the U.S. government, when it has so many commercial and other interests with countries like Saudi Arabia, what action would be taken?'' he asked. ''We've refused to join the international criminal court. And trying to accuse a foreign country of criminal activity gets us into a terrible diplomatic mess. So why shouldn't they be held responsible in our courts?''

To those accustomed to the genteel rites of diplomacy, the adversarial American court system may seem an unfortunate forum to engage questions of international wrongdoing. In an affidavit in the Burnett case, Charles Freeman, a former ambassador to Saudi Arabia, disparagingly referred to this solution as ''the privatization of foreign policy.'' Gerson prefers to call it the privatization of justice. Absent the judiciary, he argues, victims of terror have no other means of redressing wrongs. ''Freeman's notion, which represents institutionalized State Department dogma, is like the old idea that the Post Office is only something that the U.S government can do -- it's so antiquated it's absurd,'' he said. ''The idea is that the government is obligated only to itself and responsible to no one. Well, that idea has been eroding with the advent of contemporary human rights. This is the great human rights case. It's the right to be free from terrorism.''

American civil courts are not unfamiliar with lawsuits involving international human rights. Since 1980, lawyers have made shrewd use of an obscure 1789 law called the Alien Tort Claims Act, originally intended to combat piracy, which gives American courts ''original jurisdiction of any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the United States.'' As a result, American judges have heard from Guatemalan victims of torture, from Haitian dissidents and from survivors of the Bosnian genocide. In the last decade, the same law has also been used in an attempt to hold multinational corporations accountable for malfeasance -- like Unocal, for example, for its alleged use of forced labor to provide security for oil pipelines in Myanmar.

The difference between Alien Tort cases and Burnett, however, can be measured in light years. Alien Tort cases are generally brought by human rights lawyers, working for a pittance, hoping to turn a 215-year-old law into an instrument of justice for citizens around the globe. Burnett is being brought by a plaintiffs' lawyer, toiling for a cut of the proceeds, hoping to use laws recently enacted by a law-and-order Congress to punish those who have brought harm to Americans. One can see how tastelessly opportunistic it might seem from the point of view of the human rights community: plaintiffs' lawyers, swooping in, turning a handsome profit off history's ugliest moments. Yet some human rights experts see real value in Burnett. ''It seems like a righteous case brought by an experienced lawyer,'' said Paul Hoffman, the human rights attorney involved in the Unocal suit. ''And who else has the kind of resources for it? Who else has that kind of cash up front?''

Motley does, of course. Yet there aren't many precedents for spectacular payoffs in cases like this one. Almost none of the plaintiffs who have sued successfully using the Alien Tort Claims Act have been able to collect from the hostile foreign parties they've targeted; generally, they are awarded default judgments when the defense doesn't show up in court. And most of the successful cases using antiterrorism statutes have been directed at countries on the State Department list of terrorism sponsors, like Iran and Cuba, whose American assets, if there are any, are generally frozen. The victories in all these cases are mainly moral rather than financial. In going after wealthy Saudis and Saudi financial institutions with considerable assets in the United States, Motley is part of the first generation of lawyers trying these cases who might actually be able to collect.

Unless, that is, the Bush administration tries to block the suit. As a rule the administration favors a limited role for the judiciary in international cases. Later this month, it will argue before the Supreme Court against the use of the Alien Tort statute for human rights cases, absent a law from Congress explicitly allowing as much. Even with an imprimatur from Congress, the president clearly doesn't like Motley's use of the antiterrorism statutes; back in October 2002, news articles reported ''administration officials'' saying that the government was considering asking the courts to dismiss the suit. Victims' families reacted with the outrage you'd expect. The administration never intervened.

But should the administration consider Motley's suit a threat? David Aufhauser, the former general counsel to the Treasury Department, said he believes that private and government action against terrorism are not mutually exclusive pursuits. ''If brought soberly and with substance, private actions can be of material assistance to the government,'' he said. ''Because I can tell you: the bankers of terror are cowards. They have too much to lose by transparency. Name, reputation, affluence, freedom, status. They're the weak link in the chain of violence. They are not beyond deterrence.''


Jean Charles-Brisard, Motley's chief European investigator, was a bit late to arrive at La Reserve Hotel in Geneva one afternoon last December, but it didn't seem to matter. The witness he was meeting, Carmen bin Laden, wasn't ready to speak with him anyway, because she was still talking to a pair of foreign journalists about ''Inside the Opaque Kingdom,'' her chronicle of tribulations within the bin Laden family. When she finally finished, she walked over to Brisard, magisterially shook his hand and took a seat on a hard maroon couch. She was trim, plump-lipped, imposing and, in her own way, spectacular. Her face was stretched as taut as a volleyball net, and her coat collar was a vivid species of fur. She pulled out a cigarette.

Carmen bin Laden is Osama's Swiss-born sister-in-law. She is currently embroiled in a bitter divorce from his half-brother Yeslam, who is a defendant in Burnett. This makes her, like many of the witnesses in Motley's case, fairly rich in ulterior motives. Her discussion with Brisard did not last long. After just a few minutes, she received a phone call and abruptly left. Brisard turned to me and apologized for her ''bizarre'' behavior. ''She's not a key witness,'' he said. ''She's a contextual witness.''

Over the course of their investigation, Motley's team has learned what the professional intelligence community has long known: the information trade often involves questionable types. Michael Elsner, an associate at Motley Rice who often accompanies Brisard on these trips, told me of once receiving a phone call from a Russian fellow named Igor who said just enough about Islamic banks and charities operating in Chechnya to earn himself an invitation to chat. The man who showed up was bald, rotund and almost permanently attached to a shining silver briefcase. ''He was supposed to get us things,'' Elsner said. Yet he never returned. It's probably just as well. A background check revealed that Igor had a small problem with embezzling.

With his $12 million, Motley has begun an investigation that even most nation-states could not afford. But money alone is not enough to form an ersatz C.I.A. Motley sought out former intelligence agents, journalists and professors, all of whom spent their lives obsessing about Al Qaeda. Some turned out to be shady and unreliable. Yet Motley has had some success. Early on, one of his sources in Afghanistan learned of a Taliban fighter who was selling a computer file that he claimed had belonged to Muhammad Atef, military commander for Al Qaeda until he was killed in November 2001 in Afghanistan. The seller wanted $80,000. Motley wired it to Dubai. Motley's team also discovered a document supposedly signed by Mullah Omar containing a directive to turn over $2 million ''in Saudi Arabia aids'' to a terrorist in central Asia. That got attention in the press.

But Motley also concedes that his team had a hard time separating wheat from chaff when it began its investigation two years ago. Fakihi's computer, which Motley was so pleased to have obtained, for example, ended up adding little to the information he'd already collected. The car that came with it is still sitting somewhere in Europe.

Motley is now focusing on the documents culled by foreign governments, which have already been vetted and, presumably, authenticated. This is where Brisard comes in. Though his book was criticized in the United States, he is nevertheless considered an expert on Al Qaeda's financing stream, particularly its Saudi tributaries, and has written a well-respected report on the subject for the United Nations Security Council. So far Brisard has gotten his hands on two million pages of documents from 35 foreign governments, some of them quite tantalizing: Swiss bank records of Osama bin Laden; Albanian intelligence reports on bin Laden business dealings; information from 34 Bosnian hard drives from the offices of Al Haramain Charitable Foundation, which Brisard said he managed to get instead of the F.B.I. (Why? I asked. ''Because the U.S. promised to give them the technology to recover the deleted files, but didn't,'' Brisard answered. ''And we did.'') Recently, added Motley, an Oregon federal prosecutor investigating Al Haramain called him, wondering whether he could have a look at those files. Motley said he obliged.

One may wonder why these countries would bother cooperating with an American civil lawsuit. Motley has a characteristically blunt explanation. ''Please -- these countries have their own parochial agendas,'' he said. ''Radical Islamic fundamentalism is a huge problem in France. A huge problem in Spain. A terrible problem in Germany. And look at Chechnya! Why do you need to look any further at why Russia's gonna help us? Or look at Jordan. It's a secular kingdom! They're certainly not rah-rah-rah on the Wahhabi movement.''

How this formidable pile of information will be interpreted by the courts -- if Motley's case ever gets that far -- remains to be seen. For the lay person, any foray into the intelligence world is surreal and initially intoxicating; who wouldn't respond to the formation minutes of Al Qaeda, which the team obtained from Bosnia? If genuine, this and many of Motley's documents are certainly of historical relevance, but whether they're of legal relevance, demonstrating that Motley's defendants knew they were providing material support to terrorists, is another question entirely.

''The claim against my client is that it gave money to charities and the money ended up in the hands of terrorists,'' said Christopher Curran, the lawyer for Al Rajhi Bank, one of the banks being sued by Motley. ''But these were government-regulated and government-approved charities that held themselves out as bona fide charitable organizations. When we Americans donate our clothes to Goodwill or our funds to the United Way, do we really know where it's all going? Don't we also rely on government regulation and the representations of the charities themselves?''

Even if Motley compiles enough evidence to prove his defendants knowingly financed terrorism, it may not be enough: the judge must still agree that it is appropriate for an American court to assert jurisdiction over them. In the cases of the Saudi Princes Turki and Sultan, for example, the judge did not. In November the United States District Court in Washington ruled that the allegations against the princes, as Saudi officials, were not enough to surmount sovereign immunity, a powerful privilege that protects states and their officials not just from liability but also from lawsuits themselves.

The ruling didn't affect Motley's banking, charity and nonsovereign defendants, but his team was devastated when it heard the news. ''The judge proceeded as if it were a time of peace,'' Gerson said, ''and it's a time of war.''


For Gerson and Motley, war means interpreting the antiterrorism statutes as aggressively as possible. But even people sympathetic with their efforts think there are limits. Like suing sovereigns. ''Look,'' said Aufhauser, the former Bush administration official, ''you have to be mindful that bringing them into an American court is an invitation for enormous mischief abroad, potentially against former and current U.S. officials . . . like me.''

The United States more or less had to cope with this problem last year, when Iraqi families, using Belgium's ''universal jurisdiction'' law (now amended to give immunity to world leaders), tried to call Colin Powell, former President Bush and Dick Cheney into court for the bombing of a civilian shelter during the gulf war in 1991. Youssef M. Ibrahim, a former New York Times reporter who is now the managing director of Strategic Energy Investment Group, a consulting firm based in Dubai, told me that two lawyers in Saudi Arabia are flirting with the idea of recruiting Iraqi clients to sue Donald Rumsfeld for the use of depleted uranium munitions in Iraq. What if their targets don't stop with Rumsfeld? And what if they also sue Lockheed Martin and Northrop Grumman for making those arms? Or their engineers for designing them?

For those who believe the executive branch should be wholly in charge of foreign policy, Burnett feels like a mockery of international relations, a flagrant end run around the institutions designed to engage the world community. ''If people think we should be tougher on these countries, we have a democratic process to try to bring that about,'' said Murphy, the former State Department official. ''They can vote, they can lobby, they can form networks and lobby even better. But it shouldn't be dictated by the initiatives of just a few victims.''

Particularly, the argument goes, when Saudi Arabia has an incentive to finally address the problem of terrorist financing itself. In May and November 2003, terrorists blew up housing complexes in Riyadh, which reportedly spurred more on-the-ground intelligence cooperation between the United States and Saudi Arabia than ever before. The Treasury Department, charged with tracing terrorism dollars, noted in an announcement in January that it worked jointly with Saudi Arabia to close down four offices of the charity Al Haramain outside the kingdom. Would now be the time to humiliate Saudi Arabia with a lawsuit, just as our objectives are finally starting to align?

''Basically, this is U.S. diplomacy by contingency-fee lawyer,'' said Curran, the defense lawyer. ''No one disputes that all of those responsible for 9/11 should be tracked down and held fully responsible. But in this case, allegations have been made indiscriminately against some of the most prominent and reputable Saudi organizations and citizens -- many of whom are Western-oriented and could play a major role in fostering constructive relations between our two countries. These lawsuits undermine that possibility.''

Meanwhile, the American budget and trade deficits continue to grow. Is now the time to scare away the foreign investors who are pouring money into the American economy and buying Treasury bonds? Less than a year after Sept. 11, The Financial Times reported, Saudi investors had already withdrawn as much as $200 billion from the United States. ''At the end of the day, I believe this president will prevent this lawsuit,'' Ibrahim said. ''There's nothing more cowardly, as you know, than capital.''

Some human rights lawyers, though reasonably convinced of the merits of Motley's case, also balk at the ''material support'' clauses it relies so heavily upon, believing they've been defined too broadly and could therefore unwittingly penalize those who give money to groups they consider politically legitimate. ''When Nelson Mandela came to Yankee Stadium, should all the people who put $10 in the hat be treated as terrorists?'' asked David Cole, a human rights lawyer who is leading an aggressive challenge to these statutes. Cole pointed out that not long before, the United States government had labeled the African National Congress a terrorist organization. ''Are we going to go down the road of guilt by association in the name of fighting terrorism, just as we did in the name of fighting Communism?'' Cole said. ''That's my principal concern.''

Motley would point out that he is not going after $10 donors in his lawsuit, but the gulf states may not view it that way. ''I give to charity personally,'' said Khaled Al-Maeena, editor in chief of The Arab News, an English-language newspaper published in Jidda. ''You can quote me on this. A lot of people supported the Afghan struggle against the Soviet Union. Some of that money may have been siphoned. But that does not mean we are responsible for Sept. 11. Who are these people who are accusing them? They are fat-cat lawyers -- fat-cat lawyers who want to make money.''

Indeed, perhaps the most discomfiting aspect of the Burnett case is the message it sends abroad. The United States already has an international reputation for unquenchable litigiousness. And Motley, often prone to rhetorical excess -- like referring to Prince Turki as Prince Cooked Goose -- hardly seems like the most sensitive champion of private action against foreign defendants. The average Saudi may read about Burnett and feel not deterred but further inflamed: the United States walked away from the Kyoto treaty; it attacked Iraq with only meager international support; it repeatedly flouted the desires of the United Nations. And now, the United States, whose citizens are among the richest and luckiest on Earth, has responded to its misfortune with a trillion-dollar lawsuit aimed at, of all things, some of the most prominent relief organizations in the Middle East.

''A judgment will cause great resentment on the part of the people here,'' Al-Maeena concluded, with a sigh so audible it temporarily muffled our connection across the globe. ''And it will be fuel, I think, for our own extremists.''


In mid-December, the Motley team got some disorienting though not entirely unexpected news. A panel of federal judges ordered the consolidation of all Sept. 11 cases involving foreign defendants into the Southern District of New York. It's for the pretrial phase only, in order to spare the defendants the hassle of showing up in multiple courts for multiple lawsuits, but it nevertheless has its consequences. Motley, who had been following his own rhythms, must now reach a power-sharing agreement with the lawyers representing a dozen or so other cases, and their styles, defendants and theories of liability are not necessarily the same. As it turns out, Motley's first attempt at court-driven diplomacy may not involve his defendants but his new colleagues. And lawyers, of course, get along only slightly better than warring nations. So far, no agreement has been reached.

Because Motley has served the most defendants and is representing the most wrongful death claims, he will doubtless have leverage in this deal. And some of the other lawyers now involved in this case could prove a real asset to Motley's team. Like James Kreindler, for example. Though Gerson was the first to sue Libya in the case of Pan Am 103, it was Kreindler, an airline litigation expert, who ultimately represented most of the families. His faint New York patois and familiarity with the folkways of the Southern District also can't hurt; he seems to have a genuine rapport with the new judge in this case, Richard C. Casey.

But Kreindler has spent only $2million so far on his suit. A good portion of it went toward examining Al Qaeda's ties with Iraq, which now appears to be moot -- even if he could provide proof, the Bush administration has declared Iraq's assets off-limits. Most important, though, Kreindler's approach to his lawsuit is very different from Motley's. ''You have to handle this case in a delicate way,'' he said, ''in a way that doesn't burn bridges with our government.'' He stressed that he's a Democrat. ''But I believe in letting the government go first in their criminal prosecutions, and it takes years for the government to do its work. But when that's done, you have the weight of the government behind you when you make allegations.''

This approach does not harmonize well with Motley's instincts. Patience is not his strong suit. ''Jim is the Job of the trial bar for waiting so long on Pan Am 103,'' he said. ''But my clients don't want to wait. They want the trial last week.''

And yet they may have no choice. The court system, their chosen means of justice, is a fundamentally slow, lumbering thing, and with so many different lawyers and philosophies now thrown in the mix, it seems now to be even slower. Motley's clients, like Motley himself, may have to accept that legal solutions to misfortune, as gratifying and empowering as they seem, still don't give their victims full control.

Still, Motley is proceeding apace, serving defendants and collecting documents from around the globe. And Bush has yet to interfere. Last year, at a Republican fund-raiser in Little Rock, Deena Burnett said she asked the president what he thought of the lawsuit she had initiated. The two were standing side by side, waiting to have their picture taken together. She said that Bush turned and looked at her, just before the flashbulb popped. ''You just keep doing what you're doing,'' he said.

Jennifer Senior is a contributing writer for the magazine. She last wrote about Gov. George E. Pataki.

Copyright 2004 The New York Times Company
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Posted by maximpost at 9:51 PM EST
Permalink
Saturday, 13 March 2004


>> WISE WOMEN CONTINUED...
Curing the 'Dark Side' of Globalization
http://www.npr.org/rundowns/segment.php?wfId=1765082
?
from All Things Considered, Saturday , March 13, 2004
NPR's John Ydstie talks to economist Catherine Mann about her proposals to remedy the dark side of globalization.




>> KIM JONG-IL ENDORSEMENT CONTINUED...

Kerry endorses longstanding North Korean demand to cut Seoul out of direct U.S. talks
Special to World Tribune.com
EAST-ASIA-INTEL.COM
Tuesday, March 9, 2004
Democratic presidential hopeful Sen. John Kerry, D-Mass., at a town meeting in Houston on March 6.
U.S. Democratic Party presidential candidate John Kerry appears well on the way to winning the North Korean vote.
The Pyongyang media quoted Kerry as criticizing what North Korea sees as the "hard-line" policy of President Bush.
The reports have focused on Kerry's call for bilateral negotiations between North Korea and the U.S. - something the North had demanded for decades before agreeing last year to multilateral talks that gave South Korea a place at the table along with China, Japan and Russia.
The North Korean media have also quoted Kerry as criticizing Bush's policy on Iraq. North Korea strongly opposed the U.S. invasion of Iraq, apparently seeing a precedent there for a preemptive strike against the North's nuclear facilities. Bush in January 2002 included Iraq and North Korea in the same "axis of evil," along with Iran.
The North Korean reports on Kerry have been brief and factual. That's seen as proof that North Korean leaders place a certain confidence in Kerry reflecting the good will engendered by the Clinton administration. Clinton's secretary of state, Madeleine Albright, visited North Korea in late 2000 and Clinton was considering a visit to the North his administration ended in January 2001.
North Korean rhetoric has regularly castigated Bush, denouncing him as a "charlatan" and worse.

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European intelligence: Al Qaida sleepers planned attack
SPECIAL TO WORLD TRIBUNE.COM
Friday, March 12, 2004
LONDON -- Western intelligence sources believe Al Qaida employed insurgents from North Africa for the train bombings in Spain that killed about 200 people.
The sources said Spanish and other European intelligence and security agencies believe that sleeper cells established by Al Qaida-aligned groups helped designate the targets and provide logistics and safe haven for operatives who detonated 10 backpack bombs aboard commuter trains in Madrid on Thursday. The cells were established by organizations that stem from Algeria and Morocco and employed local insurgency operatives, including Basque separatists.
"These attacks were the result of years of liasion and planning between North African groups aligned with Al Qaida and Basque separatists and other local terrorist operatives," a European intelligence source said. "Everybody knew a major attack was coming, but nobody expected it to be this lethal."
On Thursday, an Al Qaida cell, called "Abu Hafs Al Masri Brigades," asserted that the bombings in Madrid constituted an Islamic attack against U.S. allies in Europe, Middle East Newsline reported. The letter termed the strikes "Operation Death Trains."
The North African groups believed to have been involved in the Madrid attacks include the Salafist Jihadiya in Morocco and the Salafist Brigade for Combat and Call in Algeria. Salafist Jihadiya was said to have been contracted by Al Qaida for the May 2003 suicide bombings in Casablanca in which 44 people were killed. Algeria's Salafist Brigade has been regarded as the chief subcontractor for Al Qaida in Europe and North Africa.
"We have succeeded in infiltrating the heart of crusader Europe and struck one of the bases of the crusader alliance," the letter, sent to the London-based Al Quds Al Arabi daily, said. "This is part of settling old accounts with Spain, the crusader, and America's ally in its war against Islam. Where is America, O [Spain's prime minister] Aznar? Who is going to protect you, Britain, Japan, Italy and other collaborators from us?"
The Abu Hafs group is named after a late Al Qaida commander. Abu Hafs is a pseudonym of Mohammed Atef, a relative by marriage to Osama Bin Laden and killed in a U.S missile strike in 2001.
"We bring good news to Muslims of the world that the expected 'Winds of Black Death' strike against America is now in its final stage," the letter said.
The Abu Hafs Brigades claimed responsibility for the November 2003 suicide bombings of two synagogues in Istanbul, Turkey and the August bombing of the United Nations headquarters in Baghdad. Abu Hafs also claimed responsibility for Monday's suicide bombing of a Masonic Lodge in Istanbul.
At first, the Spanish government attributed the explosions to ETA, a Basque separatist group. But on late Thursday Spanish Interior Minister Angel Acebes appeared to confirm the assessment of Western intelligence agencies that Al Qaida was involved in the blasts.
Acebes said a van found near the scene of the bombings contained seven detonators and an Arabic tape with verses from the Koran. "I have just given instructions to the security forces not to rule out any line of investigation," Acebes said.
Intelligence sources said most Western agencies regard Abu Hafs as a fictitious group used by Al Qaida in its psychological warfare campaign against the West. They said Abu Hafs has been used by Al Qaida in attacks coordinated with local insurgency cells.
Spain, which broke up an Islamic insurgency network linked to the Al Qaida strikes against the United States in 2001, has been a target of Osama Bin Laden since last year, apparently because of Madrid's participation in the U.S.-led military coalition in Iraq, the sources said. A Bin Laden message on Oct. 18, 2003 cited Spain as a target along with Australia, Britain, Italy, Japan and Poland.
U.S. intelligence analysts dismissed the prospect that ETA was behind the Madrid bombings. They said ETA appeared to lack the capability and motivation for such an attack, but added that an emerging young leadership was believed to be forming links with Islamic insurgency groups aligned with Al Qaida.
"Neither ETA nor Grapo [another Spanish insurgency group] maintains the degree of operational capability it once enjoyed," the State Department said in its annual report on terrorism released in 2004. "The overall level of terrorist activity is considerably less than in the past, and the trend appears to be downward."
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FBI hid Oklahoma bombing files, court told
Judge reviews allegations of tainted jurors
The Associated Press
March 11, 2004
Terry Nichols, serving time on federal charges in the Oklahoma City bombing, also faces state charges.
CREDIT: Associated Press
Terry Nichols' attorneys say more than a dozen FBI documents that raise the possibility of additional accomplices in the 1995 Oklahoma City bombing weren't turned over by state prosecutors or the federal government for Nichols' murder trial defence.
The documents, cited in a recent series of Associated Press stories, include two 1990s teletypes from then-FBI director Louis Freeh's office citing possible connections between Timothy McVeigh and a gang of white supremacist bank robbers, the lawyers said.
Nichols, in federal prison, began trial this month on Oklahoma state murder charges alleging he assisted McVeigh in building the deadly bomb.
The judge has said he will dismiss the charges with prejudice -- making it very hard for prosecutors to resurrect the case -- if Nichols' lawyers can prove documents that could have aided their defence were withheld.
Under a Supreme Court ruling, prosecutors and the government are obligated to turn over to defence lawyers all materials that could help clear a defendant, such as evidence that points to other suspects or casts doubt on prosecution witnesses.
Nichols' attorneys agreed to review the materials cited in the AP story and identify which they could not find among the massive files prosecutors and the government provided them. In all, they identified 13 FBI documents and a handful of other materials.
"To our knowledge, we have not received these documents from the state or federal government," lead attorney Brian Hermanson said Wednesday.
In addition, the lawyers said they did not receive any information from prosecutors concerning the FBI's unsuccessful efforts to get permission to interview McVeigh in 2001 to resolve lingering questions before his execution.
The prosecutor, Oklahoma County District Attorney Wes Lane, said, "Everything the federal government has provided to us has either been given or made available to the Nichols' defence team."
Nichols, 48, is serving a life prison sentence for the April 19, 1995, bombing of the Alfred P. Murrah Federal Building that killed 168 people.
The eighth day of jury selection in Nichols' trial began Wednesday amid revelations that some prospective jurors said they would lie to be selected to possibly convict and sentence the bombing conspirator.
Judge Steven Taylor said a new line of questioning will be developed to address allegations by one prospective juror that others were willing to lie to get on the jury. "I'm going to deal with this," Taylor said.
The issue was revealed as the prospective juror said she overheard other possible panelists say they would say anything to get on the jury. The woman was retained on the panel.
"I'll do whatever it takes to get up there," she paraphrased one of them as saying. "I'm going to say what I can to get on the jury. My decision is already made."
? The Calgary Herald 2004
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U.S. sees 'historic potential' in PM's disengagement plan
By Aluf Benn and Mazal Mualem
The U.S. government believes that Prime Minister Ariel Sharon's disengagement plan poses risks, but has "historic potential." Top-level consultations last week with President George Bush culminated in a decision to support Sharon's plan as much as possible, pending clarification of details with Israeli officials.
The U.S. administration believes it is important that any pullout from the Gaza Strip, and also perhaps from parts of the West Bank, not be perceived as a concession to terror.
Visiting Israel in recent days, U.S. envoys Steve Hadley, Elliott Abrams and William Burns emphasized that an Israeli withdrawal should implement "Bush's vision" and the road map, which calls for the establishment of a Palestinian state. The envoys also clarified that Washington views the disengagement proposal as an Israeli plan; the Bush administration, they said, will not dictate to Israel details regarding the scope of the pullout or the settlements to be evacuated. Washington will decide how to respond based on the policies Israel puts into action, the three envoys said. The nature of American support will be determined when Prime Minister Ariel Sharon and Bush meet, which is planned for March 31 or April 1.
The Bush administration wants to add to the ceremony of Sharon's visit, unlike earlier ones. One of the possibilities being considered is inviting Sharon to the presidential retreat at Camp David.
Sharon's bureau chief, Dov Weisglass will leave for Washington at the start of next week, for another round of preparatory talks with U.S. officials. These contacts should finalize Sharon's visit, Israeli sources said this weekend. Weisglass and U.S. officials will work on drafts of a statement to be issued at the end of Sharon's visit, which will outline assistance to be furnished by the U.S. in exchange for Israeli withdrawal.
The three U.S. envoys met in Israel with Sharon, Foreign Minister Silvan Shalom and Finance Minister Benjamin Netanyahu. The meetings focused on whether an Israeli pullout from the Gaza Strip is to be supplemented by dismantling settlements on the West Bank.
Sharon was originally inclined toward a relatively large-scale withdrawal from West Bank settlements, but in the face of strong opposition from Likud colleagues, he is now considering a withdrawal from the Gaza Strip alone.
Sharon decided Saturday to postpone a meeting scheduled for tomorrow with Likud ministers about the disengagement plan. His spokesmen said this was necessary because some Likud ministers are overseas; but sources said last night that postponement reflects Sharon's concern about mounting opposition in the Likud to disengagement.
Of 13 Likud ministers in the government, three (other than Sharon) are certain supporters of the plan: Defense Minister Shaul Mofaz, Minister of Industry and Trade Ehud Olmert and Minister Gideon Ezra. The Likud ministers known to oppose the plan are Uzi Landau, Yisrael Katz and Tzachi Hanegbi.
Netanyahu met with the envoys at Sharon's request, and told them that the Gaza Strip must not become a base for Hamas or Al-Qaida terror groups and asked the envoys about security and diplomatic guarantees. Bush, said the envoys, has devised a policy of beating terror, and not surrendering to it; this rule applies to the Gaza Strip, just as it applies to every part of the world, the envoys insisted.
The U.S. envoys wondered whether an Israeli withdrawal would calm events on the ground, comparing a pullout with the Israel Defense Forces withdrawal from Lebanon in 2000. Netanyahu objected to the comparison, saying that conditions are different in the West Bank and the Gaza Strip.
After their meeting, Netanyahu released a statement saying "the [disengagement] plan which is being considered is complex and problematic;" Netanyahu indicated in the statement that the nature and scope of guarantees and assistance to be provided by the U.S. remain unclear.
Meeting with American officials last Thursday, Defense Minister Shaul Mofaz emphasized that differences that separate the Gaza Strip and the West Bank. The security model to be followed regarding Gaza is simple, since the region is surrounded by a fence, Mofaz said. On the West Bank, events are more complicated, Mofaz said, and the timetable must be different, due to the need to complete the separation fence.
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The mother of parliamentary rows
Mar 9th 2004
From The Economist Global Agenda
In Britain's biggest constitutional tussle for decades, the unelected House of Lords has sabotaged Tony Blair's bill to give Britain a proper supreme court and an independent body to select judges
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BRITAIN has long been an anomaly among the developed nations. It is one of the world's oldest and most exemplary democracies, yet it has no formal constitution and has an unelected head of state who simply inherited the job from her dad. Britain's courts are widely admired around the world, yet the country lacks the separation of powers evident in most countries with a rule of law. The head of the judiciary, the Lord Chancellor, also serves in the executive as a cabinet minister while moonlighting in the legislature as speaker of its upper chamber, the House of Lords (the majority of whose members, until recently, inherited their seats). In the Lords, a committee of legislators, known as the "law lords", doubles up as Britain's court of final appeal.
Since becoming prime minister in 1997, Tony Blair has been making mostly well-intentioned but usually ham-fisted attempts to modernise Britain's creaking constitutional arrangements. His latest proposal--a Constitutional Reform Bill, to abolish the Lord Chancellor's job and create a separate supreme court and an independent body to recruit judges--resulted in another fiasco on Monday March 8th. The Lords voted to delay the bill by sending it to a committee for detailed consideration, making it unlikely to pass before the next election. A furious Mr Blair, who had warned that he would not be held "hostage" by the unelected upper house, may now ram the measure through using the Parliament Act. This law was passed during a constitutional tussle almost a century ago, to stop the Lords frustrating the will of the elected House of Commons. It has only been used three times in the past 50 years. If he invokes it now, Mr Blair could simply pass his bill in the Commons (where his Labour Party currently has a big majority) and it would become law without the Lords' consent.
To try to get the bill through, the current (and probably the last) Lord Chancellor, Lord Falconer, offered some last-minute concessions to allay worries about how genuinely independent the new body to select judges would be--though it can hardly be less independent than the current system, in which they are chosen by either the Lord Chancellor or the prime minister. However, the opposition Conservatives argued that it was an unnecessary extravagance to set up a separate supreme court, and won the support of enough Lords to force a delay in Mr Blair's proposals. If the prime minister does use the Parliament Act to ram through his reforms, he risks a running battle with the upper house, which could retaliate by delaying much of the government's legislative programme until the next election.
The seeds of the current confusion were sown last June when Mr Blair was forced, by the unexpected resignation of a senior minister, to reshuffle his cabinet. He combined this with an attempt to abolish the Lord Chancellor's job and make other constitutional changes. This caused ructions because he had failed to consult other political parties--or, in fact, anyone outside his close circle. On finding that he could not get rid of the Lord Chancellor without passing a law, he backtracked.
Britons seem to have a congenital fear of any changes to their ramshackle constitutional arrangements. But many observers say Mr Blair has made things worse for himself by failing to think through the consequences of the changes he has proposed. Among his earliest ones were the restoration of a parliament in Scotland (after almost three centuries' absence) and a quasi-parliament for Wales. Though these have been modestly successful, the transfer of powers to them, without the creation of an equivalent assembly for England, has led to the undemocratic spectacle of Scottish and Welsh parliamentarians voting at Westminster on matters that only concern England, while English parliamentarians have little say in Scottish and Welsh affairs.
The prime minister's efforts to reform the House of Lords itself have also been erratic. Before taking power, Labour had promised to democratise the Lords, and in 1999 most of the upper house's 750 hereditary peers were expelled. The government then set up a commission to consider the next stage of reform. The commission suggested that the Lords' members be mainly chosen by an independent committee. This proved unpopular, so Mr Blair asked a parliamentary committee to suggest another plan. Last year, no fewer than seven options were put before the House of Commons, which rejected all of them. Mr Blair is now threatening a bill to expel the remaining 92 hereditary peers. Critics say this would leave the upper chamber as predominantly an appointed House of Cronies (though opposition parties get to install some of their cronies too).
One criticism of Mr Blair's proposed supreme court is that, unlike those elsewhere, it will be unable to strike down legislation that offends basic constitutional principles (though the courts already can do so where a law offends the European Convention on Human Rights). Not having a written constitution in the first place makes this tricky. Despite his reforming zeal, Mr Blair is not proposing to end this aberration and give Britain a formal constitution. But many feel that his government's current proposals to limit asylum seekers' rights show why a written constitution, and a supreme court to enforce it, are needed. The government wants to restrict the courts' ability to hear appeals from asylum seekers rejected by the new tribunals that will consider their cases. Seeking to restrict the judiciary's oversight of legal process in this way would be unthinkable if Britain had a supreme court with constitutional backing, like America's.
Iraq's rival factions have now agreed a constitution. Even the quarrelsome Afghans have done so. Surely, say Mr Blair's critics, the time has come for Britain to follow suit. A written guarantee of basic rights, enforced by a truly independent judiciary, and a properly democratic (ie, elected) upper house are, they say, all needed to make Britain the "modern" country that the prime minister promised on coming to power.

Copyright ? 2004 The Economist Newspaper and The Economist Group. All rights reserved.


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>>

Roh goes, for now
Mar 12th 2004
From The Economist Global Agenda
South Korea's President Roh Moo-hyun has been forced to step down after being impeached by parliament, ostensibly for breaking election rules ahead of next month's general election. The move has proven extremely divisive and will increase political instability
AP
Parliamentary democracy, Korean-style
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ROH MOO-HYUN has never commanded the support of South Korea's political establishment. Even after his surprising nomination by the Millennium Democratic Party (MDP) for the presidency in 2002, conservative elements in the party itself tried to undermine the former human-rights lawyer. The split in the MDP last September--between a small band of Roh supporters and the majority--left the president without a party. Worse, the opposition, helped by the country's conservative newspapers, has been trying to bring down the president for months. Even so, there was widespread surprise that the opposition managed to secure the required two-thirds majority for an impeachment bill on Friday March 12th. The vote, which Mr Roh's supporters had tried to block by occupying the speaker's podium for two days, produced scenes of chaos in the chamber, with the speaker having to be escorted out under a hail of shoes, nameplates and other improvised missiles. The bill has bitterly divided the country. At worst, it could lead to years of political turmoil.
In the short term, it is not clear if Mr Roh's impeachment will stand. The bill must go to the constitutional court, whose judges must approve it by a two-thirds majority. The court will probably take at least a month, and possibly up to six months, to deliver its verdict--so this may not come until well after the election, due on April 15th. In the meantime, the country will be run by the prime minister, Goh Kun, who is normally a ceremonial figure. The nightmare scenario, in terms of policy paralysis, is that Mr Roh is reinstated to serve the remaining four years of his term but his new party, Uri, fails to make big gains in the election. It currently has 47 seats in the 273-seat parliament.
The transgression that led to the impeachment vote was surprisingly minor. Mr Roh is not accused of Nixonesque lying or Clintonesque sexual peccadilloes. He is guilty simply of pledging to do his utmost to secure votes for Uri in the general election. In South Korea, where the president, even when he has a party, is a public official deemed to be above grubby party politics, this is against the rules. Nevertheless, Mr Roh refused to apologise. He finally relented on Friday morning, just before the vote, but his opponents said it was too late.
Although the opposition has focused on the election-rules violation for the purposes of impeachment, there are bigger worries, particularly corruption. A recent scandal has touched Mr Roh's closest aides, a number of whom are either behind bars or under investigation for accepting illegal donations. But the opposition Grand National Party (GNP) has also been caught out. In December, Lee Hoi-chang, the GNP's leader, admitted that the party had accepted 50 billion won ($42m) in illegal funds from big companies, and turned himself in to state prosecutors. The scale of illegal donations may be much greater for the GNP than for Mr Roh's lot, but it is the president who has suffered most from this scandal.
Campaigning on a platform of rooting out endemic political corruption and infighting, Mr Roh was elected on a wave of optimism. However, he has struggled to build on the goodwill. Some problems, like North Korea's nuclear shenanigans, were outside his control. South Korea's economic troubles, too, were evident before Mr Roh's inauguration in February 2003. The country's growth was already slowing before the SARS virus dampened business activity throughout Asia. The government's economic pump-priming in response to the outbreak has helped to stimulate a recovery, but this has not been entirely painless. The previous government's policy was to underpin economic growth by encouraging consumer spending. But that has left many South Koreans struggling with huge credit-card bills.
What happens next? Some of those protesting outside the parliament on Friday night welcomed the impeachment; others accused the opposition of pre-election opportunism and bemoaned the move as the death of South Korea's youngish democracy. When Mr Roh offered to hold a national referendum on his presidency last autumn, admitting that he himself had lost confidence in his ability to govern, polls showed that more than half of voters would support him. But his popularity rating has since slipped to less than 30%. Whatever effect the current crisis has on the public's view of Mr Roh, he seems to have succeeded in widening, rather than eliminating, the divisions in South Korea's politics.
Copyright ? 2004 The Economist Newspaper and The Economist Group. All rights reserved.

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It's Korea's Economy, Debt, Stupid: William Pesek Jr. (Update1)
March 12 (Bloomberg) -- Few world leaders would relish running South Korea. Asia's No. 4 economy is grappling with a debt crisis, a tough job market and threats from the North.
And what are elected officials doing to reassure investors? Trying to remove the president.
Lawmakers today voted to impeach President Roh Moo Hyun for alleged election law violations. Roh is suspended for as long as six months as Korea's Constitutional Court considers the case. Prime Minister Goh Kun will be acting president.
It's highly uncertain whether Roh will be removed from office permanently. This is, after all, Korea's first impeachment process. Roh's alleged misdeed is so minor that election officials can't agree on whether he did anything wrong. It's anyone's guess if the court will validate the impeachment vote.
Yet whether Roh survives isn't the point. Such political shenanigans -- and television images of lawmakers scuffling -- sent troublesome signals to investors about the volatile state of Korea's democracy. They also showed the government is too distracted to fix the economy or calm tensions with North Korea.
`Turmoil'
``The impeachment will throw not only the economy but South Korea as a whole into turmoil,'' says Jang Hasung, professor at Korea University and the nation's best-known shareholder activist.
Roh gets some blame, too. Forces trying to remove him say an apology would've cleared up his alleged violation. Roh refused to back down, claiming he did nothing wrong in January when he voiced support for the campaign of a political party. As a civil servant, Roh is supposed to appear neutral.
The lessons from former U.S. President Bill Clinton, another leader who faced removal from office, come to mind. Clinton's 1992 election campaign slogan was ``It's the economy, stupid.'' For Korea, it's not only the economy, but debt, too.
To boost growth after the 1997-1998 Asian crisis, Korea encouraged banks to lend less to companies and more to households. The dark side was that individuals, most with little experience with debt, got in well over their heads.
One in 13 of South Korea's 48 million people is three months or more behind on debt payments. Fast-rising delinquencies are crimping consumer spending, which makes up more than half of Korea's $477 billion economy. Companies borrowing too much caused Korea's meltdown in the late 1990s; now it's consumers imperiling things.
Saving some Borrowers
Among the more striking side effects, bad loans at 19 banks, including Kookmin Bank and Shinhan Financial Group Ltd., owed by households and corporations rose by 3.5 trillion won to 18.6 trillion won in 2003, according to the Financial Supervisory Service.
Now, the government is bailing out at least 400,000 individuals who can't pay their debts to boost an economic growth rate that fell by half last year to about 3 percent. The plan applies to people who borrowed less than 50 million won from at least two lenders. About 1.5 million Koreans meet that criteria.
At a time when Korea needs to hone its global image, it's bizarre to see lawmakers try to impeach Roh. It's also bizarre that Roh wouldn't just apologize.
``Politicians are acting stupid, businessmen are just waiting and seeking which side will be in their own interests and the public is just sick to death about what's going on,'' Jang says.
Politicians need to keep their eyes on the big picture. China's dynamic economy is hogging most of the foreign investment flowing to and around Asia. Korea needs to convince a skeptical world that its economy shouldn't be ignored. It also must reassure investors it's on top of the North Korea issue.
Hostage Economy
While this may be domestic politics gone awry, there's a serious risk of it filtering into Korean markets, which, let's face it, aren't exactly booming. You also have to wonder how all this is playing in Pyongyang. Can North Korea still take the South's government seriously?
``This whole impeachment threat shows how politicians are willing to take the economy hostage for their own survival in the election,'' said Lee Phil Sang, an economics professor at Korea University in Seoul. ``The Korean people don't want to impeach the president they elected one year ago. They want stability and economic prosperity.''
While challenges remain, things are looking up in the economy. Exports grew 46 percent from a year earlier in February, their fastest pace in 15 years. Business confidence reached a 17- month high in February, suggesting companies are becoming more willing to invest.
That Roh's detractors said they wouldn't try to impeach him if he showed remorse makes the whole thing a joke. An action egregious enough to warrant impeachment shouldn't be something the words ``I'm sorry'' can clear up. And it's quite a coincidence that all this comes a month before parliamentary elections.
Voters know that and polls show a majority of them are against impeachment. The average Korean would prefer that the government focus on raising living standards and keeping North Korea's nuclear missiles in their silos.
The same is true of investors, many of whom may now have yet another reason to avoid Korea.
To contact the writer of this column:
William Pesek Jr. in Seoul, or wpesek@bloomberg.net.
To contact the editor of this column:
Bill Ahearn in New York, or bahaearn@bloomberg.net.
Last Updated: March 12, 2004 01:20 EST
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North Korea

Through a glass, darkly

Mar 11th 2004 | PYONGYANG AND PUKCHANG
From The Economist print edition
So far as a visitor can tell in this secretive land, North Korea's economic reforms are starting to bite. But real progress will require better relations with the outside
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COMMUNIST North Korea has started to experiment with economic reform, and opened its door a crack to the outside world. Though its culture of secrecy and suspicion stubbornly persists, it was deemed acceptable for your correspondent to visit Pyongyang's Tongil market last week. Here, stalls are bursting with plump vegetables and groaning with stacks of fresh meat. You can even buy imported pineapples and bananas from enthusiastic private traders.
But how about a photograph? Most foreigners think of North Korea as a famished nation, and the authorities are evidently keen these days to tell the world about the great strides their economy has made since reforms were introduced in July 2002. Logic might seem to suggest that a snap showing the palpable result of the reforms would be acceptable too. But it is not. The officials were friendly but firm: no pictures of fat carrots.
The July 2002 reforms were ground-breaking for North Korea: the first real step away from central planning since the dawn of communism there in 1945. The government announced that subsidies to state-owned enterprises were to be withdrawn, workers would be paid according to how much they produced, farmers' markets, hitherto tolerated, would become legal and state enterprises would be allowed to sell manufactured products in markets. Most of these enterprises, unless they produced "strategic items", were to get real autonomy from state control.
Almost two years on, how to assess the success or failure of these reforms? That climate of secrecy makes it deeply frustrating. Even the simplest of statistics is unavailable. Li Gi Song, a senior economist at Pyongyang's Academy of Sciences, says he does not know the rate of inflation. Or maybe he is not telling. After all, he says, "We can't publish all the figures because we don't want to appear bare before the United States. If we are bare then they will attack us, like Afghanistan or Iraq." So what follows can be little more than a series of impressions.
The indications are that the reforms are having a big impact. For a start, North Korea has recently acquired its first advertisement (pictured above)--for foreign cars, assembled locally by a South Korean majority-owned company. Or, to be more basic, take the price of rice, North Korea's staple. Before the reforms, the state bought rice from state farms and co-operatives at 82 chon per kilo (100 chon make one won, worth less than a cent at the official exchange rate). It then resold it to the public through the country's rationing system at eight chon. Now, explains Mr Li, the state buys at 42 won and resells at 46 won.
North Korea's rationing system is called the Public Distribution System (PDS). Every month people are entitled to buy a certain amount of rice or other available staples at the protected price. Thus most North Koreans get 300g (9oz) of rice a day, at 46 won a kilo. According to the UN's World Food Programme (WFP), that is not nearly enough. Anything extra has to be bought in the market.
In theory, even in the market the price of staples is limited. Last week, the maximum permitted rice price was marked on a board at the entrance to Tongil as 240 won per kilo. In fact, it was selling for 250. WFP officials say that in January it was selling for 145 won, which points to significant inflation, for rice at least. This is not necessarily a bad thing, since it means that the price is coming into line with the market.
The won's international value is also adjusting. Since December 2002, the euro has been North Korea's official currency for all foreign transactions. In North Korean banks, one euro buys 171 won. In fact, this rate is purely nominal. A semi-official rate now exists and the price of imports in shops is calculated using this.
Last October, according to foreign diplomats, a euro bought 1,030 won at the semi-official rate. Last week it was 1,400. A black market also exists, in which the euro is reported to be fetching 1,600 won--which implies that the won is approaching its market level. It also means, however, that imported goods have seen a big price-hike. For domestically-produced goods, like rice, prices may well go on rising for a good while longer.
What about earnings? Before the 2002 reforms, most salaries lay in the range of 150-200 won per month. Rent and utilities, though, were virtually free, as were (and are) education and health care. Food, via the PDS, was virtually given away. Now, pay is supposed to be linked to output, though becoming more productive is not easy for desk-bound civil servants or workers in factories that have no power, raw materials or markets.
Rents and utilities have gone up, though not by crippling amounts. A two-bedroom flat in Pyongyang including electricity, water and heat costs just 150 won a month--that is, about a tenth of a euro.
Earnings have gone up much more: a waitress in a Pyongyang restaurant earns about 2,200 won a month. A mid-ranking government official earns 2,700. A worker at a state farm earns in the region of 1,700, a kindergarten teacher the same, and a pensioner gets between 700 and 1,500. A seamstress in a successful factory with export contracts can earn as much as 5,000 won a month. Since that seamstress's pay equates to barely three euros a month, wages still have a long way to adjust.
The prices of food and other necessities, to say nothing of luxuries, has gone up much more than rent has. According to the WFP, some 70% of the households it has interviewed are dependent on their 300 gram PDS ration, and the WFP itself is targeting 6.5m vulnerable people out of a total population of some 23m. Not all suffer equally: civil servants in Pyongyang get double food rations from the PDS.
There are some encouraging stories. In Pukchang, a small industrial town 70km (40 miles) north-east of Pyongyang, Concern, an Irish aid group, has been replacing ancient, leaking and broken-down water pipes and pumps, and modernising the purification system. This has pushed the amount of clean water available per person per day from 80 to 300 litres. Kim Chae Sun is a manager at the filtration plant, which is now more efficient. Before July 2002 she earned 80 won a month. Afterwards she earned 3,000 won. Now she earns 3,500.
As Mrs Kim speaks, three giant chimneys belch smoke from the power station that dominates the town. All workers have been told they can earn more if they work harder, but certain groups have been told they will get even more money than everyone else. In energy-starved North Korea these include miners and power workers. Mrs Kim says her husband, who works in the power plant, earns an average of 12,000 won a month. Her rent has gone up from eight to 102 won a month, and in a year, she thinks, she will be able to buy a television or a fridge.
A lot of people, in fact, are buying televisions. The women who sell the sets from crowded Tongil market-stalls get them from trading companies which they pay after making a sale. The company price for an average set is 72,000 won, the profit just 1,000 won. After they have paid for their pitch, the traders can expect an income of 10,000-12,000 won a month.
Mystery sales
Which makes for a puzzle. Who can afford a good month's salary for a locally made jacket in Tongil, costing 4,500 won? How come so many people are buying televisions, which cost more than two years of a civil-servant's pay? How come the number of cars on the streets of the capital has shot up in the past year? Pyongyang still has vastly less traffic than any other capital city on earth, but there are far more cars around than a year ago. Restaurants, of which there are many, serve good food--but a meal costs the equivalent of at least a white-collar worker's monthly salary. Many of these restaurants are packed.
Foreign money is part of it. Diplomats and aid workers say many new enterprises seem to have opened over the last year. Nominally they are state-owned, but sometimes they have a foreign partner, often an ethnic Korean from Japan. The majority are in the import-export business. Some have invested in restaurants and hotels and some in light industry. Thanks to the 2002 reforms, these firms have a degree of autonomy they could not have dreamed of before. An unknown number of people also receive money from family abroad, but there are still no North Korean-owned private companies.
Oh for a tractor
Farmers are among the other winners: they can sell any surpluses on the open market. But two out of three North Koreans live in towns and cities, and only 18% of the country is suitable for agriculture. The losers include civil servants, especially those outside Pyongyang who do not get double food rations and have no way to increase their productivity.
Factory workers have it the hardest. A large proportion of industry is obsolete. Though Pyongyang has electricity most of the day, much of the rest of the country does not. Despite wild talk of a high-tech revolution, the country is not connected to the internet, though some high-ups do have access to e-mail service. In the east of the country lies a vast rustbelt of collapsing manufacturing plants.
Huge but unknown numbers of workers have been moved into farming, even though every scrap of available land is already being cultivated. The extra workers are needed because there is virtually no power for threshing and harvesting and no diesel for farm vehicles. This requires more work to be done by hand. Ox-carts are a common sight.
The innocent suffer
Markets are everywhere. But this does not mean that there is enough food everywhere. In Pyongyang, where there are better-off people to pay for it, there is an ever-increasing supply. Outside the capital, shortages are widespread.
No one knows how many died during the famine years of 1995-99; estimates range from 200,000 to 3m. In Pukchang, officials say that 5% of children are still weak and malnourished. In Hoichang, east of Pyongyang, schools and institutions tell the WFP that about 10% of children are malnourished. Masood Hyder, the senior UN official in North Korea, says that vulnerable households now spend up to 80% of their income on food.
And yet some things are improving. Two surveys carried out in 1998 and 2002 by the North Korean government together with the WFP and Unicef showed a dramatic improvement in children's health between those years. The proportion of children who fail to reach their proper height because of malnutrition fell from 62% to 39%, and the figures are thought to be still better now. However, Unicef says that though children may no longer die of hunger, they are still dying from diarrhoea and respiratory diseases--which are often a side-effect of malnutrition.
North Korea's 11-year-old victims
To a westerner's eye, a class of 11-year-olds in Hoichang is a shocking sight. At first, your correspondent thought they were seven; the worst-affected look to be only five. Ri Gwan Sun, their teacher, says that apart from being stunted some of them still suffer from the long-term effects of malnutrition. They struggle to keep up in sports and are prone to flu and pneumonia. They are also slower learners.
Pierrette Vu Thi of Unicef says that North Korea's poor international image makes it hard for her agency, the WFP and others to raise all the money they need. The country is in a chronic state of emergency, she says, and to get it back on its feet it would need a reconstruction effort on the scale of Afghanistan and Iraq.
Such bleak talk is echoed by Eigil Sorensen of the World Health Organisation. He says that health services are extremely limited outside the capital. Medicines and equipment are in short supply, large numbers of hospitals no longer have running water or heating and the country has no capacity to handle a major health crisis.
None of this is likely to change very fast. With no end yet to the nuclear stand-off between North Korea and the United States, American and Japanese sanctions will remain in place. And nukes are only part of it. Last week the American State Department said it was likely that North Korea produced and sold heroin and other narcotics abroad as a matter of state policy. North Koreans who have fled claim that up to 200,000 compatriots are in labour camps. North Korea denies it all.
Reform, such as it is, has plainly made life easier for many. But rescuing the North would take large amounts of foreign money, as well as measures more far-reaching than have yet been attempted. At present, there is no way for the government to get what it needs from international financial institutions like the World Bank. Such aid as comes will be strictly humanitarian, and investment in so opaque a country will never be more than tentative. Domestic reform on its own cannot fix an economy wrecked by decades of mismanagement and the collapse of communism almost everywhere else.
Copyright ? 2004 The Economist Newspaper and The Economist Group. All rights reserved.



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>> ORGANIZED CRIME? WHERE?
Between the Lines / Pyramid dealings

By Hannah Kim
Denials of the existence of organized crime in Israel set a record this week. No, there is no organized crime, but only crime that goes on in the ghetto of "the underworld." Extortion of protection money and illegal gambling - yes. Sending tentacles into politics, the economy and other establishment areas - no.
There is no organized crime in Israel, but the explosive that, according to the police, was set to go off in Ezra (Shuni) Gavrieli's car was discovered after Gavrieli went to Grigori Lerner's office in the Azrieli Towers in Tel Aviv, where he met with Sofa Landver, formerly a Labor Party member of Knesset.
If we are looking for a story that characterizes the attempt to infiltrate organized crime into Israel, the story of Grigori Lerner is a fine example. He was convicted and sentenced to five years in prison in a plea bargain on three attempts to bribe elected officials and civil servants, fraud, five acts of forgery, three false statements on corporate documents, bribing two Bank Hapoalim employees and currency violations.
His arrest by the police in 1997 dragged a parade of politicians to the National Unit for Serious and International Crimes Investigations. Among them were Natan Sharansky (currently Likud Minister without Portfolio) to whose now defunct Yisrael b'Aliyah Party Lerner contributed $100,000; Labor Party MK Shimon Peres, who had promoted the career of Sofa Landver, from being his Russian teacher to being a Knesset member, during which time she knew Lerner; Yuri Stern, who moved from Sharansky's party to (now Transportation Minister) Avigdor Lieberman's party; and Nissim Zvilli of the Labor Party.
Then too, Landver and Stern protested that Lerner was being persecuted because he was an immigrant from Russia; then too, Lieberman attacked the police and the head of the Serious and International Crimes Unit, Moshe Mizrahi.
Lerner tried to make use of his political connections in order to establish a bank in Israel. He tried to set himself up as a candidate for the Knesset, registered at the Ashkelon branch of the Likud and possibly might have succeeded in getting elected to the Knesset had the police not embarked on an open investigation of him.
After the Bank of Israel refused to approve his plan to open a bank in Israel, Lerner opened a bank in Cyprus, a kind of proxy bank, which he ran from a branch of Bank Hapoalim in Israel. In 1997, in a police raid of his offices, a letter was confiscated that Lerner had sent by fax to one of the heads of the Solntsevo syndicate, one of the biggest crime organizations in Russia. In this letter, which was included in the police evidentiary material, the word "pyramid" is used:
"(...) and the main thing, the pyramid, which will start at the Tuku Bank, is stable. Although it will not be easy. It is necessary to work hard and toughly. But I know how to do this. With respect to your decision, report to me successfully because without your cover I will not hold out. My aim is simple: to settle accounts with you for $15 million, to keep $15 million for myself, to enter politics, the Parliament (Knesset), to get my profit from the newspaper and the television channel. All the transactions will be signed by Smolniasky and Haimovitch and also Cypriots. And my hands are clean, and there are no proofs, and if they want to talk nonsense, let them. In Israel everybody talks nonsense about everyone else, and there is no consciousness. Everything is fine; Chernoy [Lerner is referring to Mikhail Chernoy, whom the Prosecutor's Office decided to try on charges of fraud in aggravated circumstances in the Bezeq shares acquisition affair - H.K.] and Luchinsky [Grigori Luchinsky, whose Israeli passport the High Court of Justice and the Interior Ministry refused to renew, and who according to police information is involved in international arms dealing and crime syndicate money laundering - H.K.] and so on. This is the truth; I need the month's delay and your cover."
There you have it, written by the man himself: Lerner's aim was to enter the Knesset and from there to promote and legitimize his businesses. To this man came Shuni Gavrieli, in whose car an explosive charge was found before it blew up.
Lerner, in an interview with the mass circulation daily Yedioth Ahronoth, said that he had been told that "Shuni Gavrieli is a kind of godfather." Gavrieli has denied any connection to illegal activity and Sofa Landver has again said that there is persecution, this time of Gavrieli and not just the immigrants from Russia.
There is no organized crime in Israel. Of course there isn't. It is true that David Appel is accused of bribing the foreign minister at the time, Ariel Sharon (now prime minister), the mayor of Jerusalem at the time, Ehud Olmert (now minister of industry and trade), the mayor of Lod, Benny Regev, and the mayor of Givat Shmuel, Zamir Ben-Ari. It is true that the latter goes around closely accompanied by bodyguards. It is true that Knesset Speaker Reuven Rivlin and former (Herut) Knesset member Michael Kleiner were employed as legal consultants in one of Appel's companies, and it is true that Likud MK Michael Eitan did business with that same Appel (organizing group tours abroad). And it is also true that in the state prosecutor's report on the Hebron/Bar-On affair Appel was called a "switchboard," for having held conversations with Ronny Bar-On (now Likud MK) and Aryeh Deri about the appointment of the attorney general.
All this is true, but there is no organized crime, there is only "organized criminal activity" by all kinds of Rosensteins.
Zohar Argov's patron
Shuni Gavrieli is an authoritative figure whom everyone obeys. Like Mantsch - Mordechai Tsarfati - the big mediator from the 1960s and '70s, who all in all was responsible for arranging the chairs at Mapai conventions. A kind of conference organizer, whom everyone knew had the final word in the gang wars.
Shuni Gavrieli is not responsible for arranging the chairs at Likud meetings. He organizes meetings of his own, in his club, the former Ariana, today Hatzerot Yaffo. Gavrieli was always the silent brother of the family, whom everyone respected and admired. His name has never been linked to illegal activity. In contrast to his older brother, Reuven, his connections with politicians have been extremely limited - up until about a year ago. Then he decided to run his daughter, Inbal, for Knesset.
Gavrieli was the patron of many Mizrahi (Jews originating in Muslim countries) singers. He tried to wean Zohar Argov from heroin, and frequenters of the Ariana remember well how Argov collapsed during a performance. Gavrieli tended him personally, with devotion. At the Halleluyah club he established near the Ariana, Shimi Tavori, Eli Louson, Aviva Avidan and Boaz Sharabi appeared. This was the period when Mizrahi singers had not yet burst the bounds of the ghetto. Eli Louzon sang "What a Country" in his wonderful tenor voice at a time when Gavrieli was conducting a struggle with the mayor of Tel Aviv at the time, Shlomo Lahat, and the municipal engineering authority.
Those were the days of polarization between North and South Tel Aviv. Shimon Yehoshua was shot dead by a policeman after he tried to stop a municipal bulldozer that was trying to demolish the balcony his family had enclosed, illegally, in its Kfar Shalem home. At the same time, businessman Rafi Unger added one and a half stories without a license to his Pyramid House on Hamasger Street, former Knesset member Avraham Shapira (Agudat Yisrael) converted the car-park at his villa into an office and ritual bath without a permit and Rehavam Ze'evi erected seven illegal buildings at the Land of Israel Museum, with the help of contractor Bezalel Mizrahi. These things were published at the time in the now defunct newspaper Al Hamishmar.
The municipal engineering authority wanted to apply the law in Kfar Shalem and Jaffa and ignored these three cases, which were a representative sample of building violations in the northern part of the city. At the time Gavrieli wanted from the city what Unger and Shapira were given - the opportunity to pay for the building violation and legitimize it. He was answered with an absolute no.
Gavrieli's first encounter with politics was in this context. The patron of Mizrahi singers sought a political patron of his own. He formed an alliance with Rehavam Ze'evi, who was very close to Lahat. Ze'evi mediated between Lahat and Gavrieli and the Ariana was made legitimate and legal. After that Gavrieli helped Ze'evi set up his political party, Moledet, and after Ze'evi was murdered, he turned openly to the area where his brother Reuven had been playing behind the scenes.
Instead of forming ties with politicians, he sent his daughter Inbal, who lacked any background in public activity, to the Knesset. His other daughter, Maya, studied law. Maya became a close legal advisor, Inbal a Knesset member and Gavrieli a real estate entrepreneur.
Gavrieli's position as the proprietor of a leading Mizrahi music club has been taken over by Shlomi Oz, who, in contrast to Shuni Gavrieli, does have a criminal past. Oz began to run the Plaka Club, behind Hamasger Street in Tel Aviv, in proximity to the illegal casino and bingo clubs, which are continuing to operate today as if there were no police. Oz, who maintained silence during his investigation by the police in the Greek island affair, hosted Likud MK Omri Sharon on the evening when David Spector gave his interview to Nissim Mishal's program on Channel 2 television. Omri and Shlomi are good friends. Inbal and Omri are also good friends.
Between the days of the Ariana and the days of the Plaka, the ghetto burst its bounds. It is worthwhile being the friend of a politician, it is worthwhile for the politician to be a friend of the club owner, and it is very worthwhile to be a Knesset member.
At Etti Alon's house
A short while before it became clear how Etti Alon had transferred about a quarter of a billion shekels from the Trade Bank to her brother, the chronic gambler Ofer Maximov, a great deal of material about illegal soccer gambling came into the hands of the Central Unit of the police. Among the other evidence that was gathered by a private investigator who was hired by the Council for Betting Arrangements in Sport there was also testimony by a woman called Etti, who ran a soccer betting station in her home from the beginning of the 1990s until 1995.
Meretz MK Avshalom Vilan, who gave the material to the police, says that only after the affair of the embezzlement at the Trade Bank was made public did he discover that this was Etti Alon, who according to the evidence did what quite a few enterprising citizens of Israel do who run betting shops from their apartments or stores. The prizes are paid by the "bank" which is of course an illegal bank, run by innocuous shell companies that were registered at the end of the 1980s.
Only in recent months have the police also begun to take an interest in illegal soccer betting, which is another flourishing branch of illegal gambling in Israel, turning over about NIS 2 billion annually, according to MK Vilan. "Today there are people sitting in the Knesset who got there thanks to gambling money," he says.
About a year and a half ago, when the police commissioner and the head of Police Intelligence appeared before one of the Knesset committees, they declared that they were certain of one thing: There is no organized crime in Israel, because there has been no infiltration of such crime into politics. This was a strange declaration, in light of what had been discovered in the Grigori Lerner case. Today, there is already recognition of the existence of "organized crime" in Israel, but the existence of crime that sends tentacles into politics, the economy and the law is denied.
This denial creates scenes that never occurred in the past, such as Ariel Sharon's attack on the police, on the day that police investigators raided the office of accountants Goldman and Co., and confiscated papers connected to the offshore Charington, Ltd. company in the Virgin Islands, which according to the suspicions was a straw company that Gilad Sharon and Cyril Kern used at the beginning of 2002 for turning around funds that were supposed to be used to pay back the fine that the State Controller had imposed on Sharon.
If the police have succeeded, on a miserable budget, in capturing the quartet of mercenaries who were brought to Israel from Russia, it is interesting what they would have succeeded in capturing if they had a realistic budget and a focused target. A few months ago Public Security Minister Tzachi Hanegbi was still talking about a budget of approximately a quarter of a billion shekels for this purpose. In the latest budget it turned out that not only had the police not received a single shekel of this, but its budget had been cruelly cut.
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Sharon postpones meeting of Likud ministers
By Aluf Benn, Haaretz Correspondent
Prime Minister Ariel Sharon postponed on Saturday a meeting planned for Monday, in which the Likud ministers were to discuss the prime minister's disengagement plan.
The official reason for the postponement was the absence of several of the ministers who are overseas, including Defense Minister Shaul Mofaz.
According to Friday media reports, Sharon was worried of growing opposition to the plan which entails a unilateral withdrawal from the Gaza Strip and the evacuation of several West Bank settlements.
Sharon, in recent days, has been considering the possibility of reducing the scope of the plan withdrawing only from the Gaza Strip, and at most from a small number of West Bank settlement. The United States and Egypt both insist on a significant withdrawal from the West Bank, so that the move does not appear as a "Gaza only" plan.
Sharon met representatives of the U.S. administration on Thursday, and discussed the details of the disengagement plan and what Israel would receive in exchange. The three envoys also met Foreign Minister Shalom, the prime minister's bureau chief Dov Weisglass, and National Security Advisor Giora Eiland.
Israel is seeking U.S. recognition of West Bank settlement blocs as well as an "exemption" from holding negotiations with the Palestinian leadership until it cracks down on terrorism.
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Syrian police said to have killed dozens in clashes
By Yossi Melman, Haaretz Correspondent
Syrian security forces killed dozens of people and injured hundred during violent clashes over the weekend, in the north of the country, according to reports that reached Haaretz on Saturday. According to the reports, by relatives of witnesses, the violence started during a soccer game and later spread to demonstrations throughout the Kurdish regions in the country.
Associated Press reports claim at least nine people were killed, although Kurdish sources state the death toll reaches 80. Kurdish sources also claim their forces killed six Syrian officers and three Syrian police officers in the exchange of fire.
According to the Kurdish sources, on Saturday Kurdish insurgents took over most of the Syrian administration buildings in the northern city of Qamishli, on the Turkish border.
The Kurdish sources added that 29 victims were buried on Saturday at a Qamishli cemetery.
According to the reports, on Friday security forces at the soccer game in Qamishli fired live ammunition at the crowd, killing some 30 people.
Shots were also fired from within the crowd, injuring several Syrian officers, including a colonel.
The protests continued on Saturday, with tens of thousands of people demonstrating in Qamishli, populated mainly by Kurds.
Two local hospitals, one private and one governmental, reported hundreds of injuries. The report also claims protestors burned pictures of Syrian President Bashar Assad. Another report claimed demonstrators in the nearby town of Amuda burned an installation of the Syrian security services.
The local Jihad soccer team, comprised of mostly Arab and Kurd players, was playing the Fituwya group from the city of Dar el-Zur, near the Syrian border with Iraq, when Fituwya fans began calling out "long live Saddam Hussein." The Jihad team responded with "long live Barazani" shouts, referring to one of the Kurdish leaders in Iraq.
Clashes ensued between the two camps inside the stadium, which contained some 5,000 people at the time, and three children were trampled to death during the ruckus.
Following the stadium incident, violent demonstrations spread on Friday to other cities in Syria's Kurdish regions. During the protests, signs and slogans slamming Assad's regime as well as the ruling Ba'ath Party were displayed. A demand was also raised for an international investigation into human rights violations during the incident.
Syrian loyalist forces, accompanied by tanks, were sent to the region, and a curfew was imposed in some areas. Efforts were also being made to calm the situation on Saturday. Syrian opposition groups, especially Kurdish ones operating outside the country, were attempting to raise public awareness to the incident, and were planning to hold demonstrations in various European cities.
Friday's incident represents the most violent wave of protests in Syria in recent memory. They follow U.S. threats to take sanctions against Damascus for its support of terror organizations, coupled with American suspicions that Syria is not do all it can to prevent Saddam loyalists from entering Iraq through its border.
Television images of smoke billowing from buildings in the Syrian town of Qamishli. (Al-Arabiya)


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U.N. Nuclear Watchdog Condemns Iran
1 hour, 35 minutes ago
By Louis Charbonneau
VIENNA (Reuters) - The U.N. atomic watchdog condemned Iran on Saturday for withholding sensitive nuclear information, in a resolution that diplomats said left open the option of U.N. sanctions if Tehran did not cooperate.
Reuters Photo
AP Photo
Slideshow: Iran Nuclear Issues
Iran hit back, saying the reason it had suspended U.N. nuclear inspections on Friday was to show its displeasure at the resolution, then in draft form. The inspectors were barred "for the time being," chief nuclear negotiator Hassan Rohani said.
"The reason for postponing the inspectors' visit was the approval of this resolution and we wanted to show that we are not satisfied," said Rohani, who had earlier said the document was "like an ugly demon with dangerous horns and sharp teeth."
The resolution by the International Atomic Energy Agency (IAEA) "deplores" Iran's omissions of key atomic technology from an October declaration, including undeclared research on advanced "P2" centrifuges that can make bomb-grade uranium.
It said the board of governors would decide in June how to respond to the omissions -- a clause that several diplomats said keeps the door open for a possible report to the U.N. Security Council and economic sanctions.
The resolution passed after a week of haggling over a tough text drafted by Australia and Canada and backed by Washington, which says Iran is trying to build atomic weapons. European and non-aligned states, Russia and China wanted milder wording.
A compromise was struck after the U.S.-led camp agreed to soften some language, although U.S. ambassador Kenneth Brill said it remained a strong warning to Tehran.
"This information calls for Iran to provide proactive cooperation instead of having information dragged out of it," he told reporters after the meeting.
Iran says its program is for peaceful purposes only.
"DECEPTION AND DELAY"
In remarks prepared for delivery in the closed-door meeting of the IAEA governing board, Brill said: "Iran...is continuing to pursue a policy of denial, deception and delay."
"Is it possible that, even as we meet, squads of Iranian technicians are working at still undeclared sites to tile over, paint over, bury, burn or cart away incriminating evidence so that those sanitized locations can finally be identified to the agency as new evidence of Iran's full cooperation and transparency?" he asked.
The head of Iran's delegation dismissed the resolution as a result of U.S. "diplomacy of force" and pressure on the IAEA.
"A resolution is being imposed...on the board by a single country," Amir Zamaninia, a senior foreign ministry official, said in remarks prepared for the board meeting that approved the resolution.
Zamaninia told reporters the halt to inspections was partly due to Iran's New Year's holiday beginning next week. "Another part is that this resolution was a bad one, a bad resolution," he said. "We need to work in Tehran to try to digest this."
On a more conciliatory note, Foreign Minister Kamal Kharrazi said Washington had been forced to compromise. "We hope that the remaining ambiguities are resolved and the situation becomes normal so that Iran can use this technology for peaceful purposes," he said.
One of the points the U.S.-led camp had insisted on in the resolution was a paragraph detailing the military connection to Iran's nuclear, but the final version left this out -- a victory for the NAM, Russian and Chinese negotiators.
IAEA chief Mohamed ElBaradei also voiced cautious optimism.
"I am pretty confident that Iran will understand that we need to go within (our) time schedule and that the decision to delay the inspections will be reviewed and reversed in the next few days," he said.
But Brill called the suspension "very troubling" and said he was concerned this could undermine the effectiveness of the checks once the IAEA returned to Iran.
"That speaks volumes about the intentions of this government in Tehran which says it has pledged full cooperation," he said.
(Additional reporting by Francois Murphy in Vienna and Parinoosh Arami in Tehran)





Iran fury over 'US resolution'
VIENNA: In a clear reference to the US, Iran blasted the UN nuclear watchdog yesterday for letting "a single country" impose a resolution against Tehran's nuclear programme.
The International Atomic Energy Agency (IAEA) ended a week-long deadlock yesterday by adopting a US-backed resolution condemning Iran for hiding nuclear activities.
"A resolution is being imposed, and I think I am using the expression with true definition of the word, on the board by a single country," senior foreign ministry official Amir Zamaninia told an IAEA meeting in Vienna, according to a copy of his speech.
Iran imposed yesterday an indefinite freeze on international inspections of its nuclear facilities in protest against a critical resolution passed by the IAEA.
Iran's top nuclear negotiator, Hasan Rowhani, described the IAEA resolution as "unfair and deceitful." Hours earlier, a meeting of the UN agency in Vienna had censured Iran for hiding suspect activities, but praised it for increased nuclear openness.
A senior Western diplomat said the compromise text worked out after non-aligned states sought to soften the resolution was "still an important signal for the Iranians to continue and intensify cooperation" with the IAEA. But Zamaninia said the resolution was "a serious setback" as it portrayed" a rather benign progressive situation as a condition of high alert." He said IAEA chief Mohamed ElBaradei has already reported "the positive trend of active co-operation by Iran and also a process of resolving issues that is gaining pace exponentially".
The resolution that was adopted came a day after Iran had put off a UN inspection mission until the end of April in what one diplomat close to the IAEA described as "potentially a large problem in the verification process."
But Iranian ambassador to the IAEA Pirooz Hosseini said yesterday that IAEA inspectors could in fact visit Iran earlier than the end of next month.
Hosseini said his country had put back the inspection mission, scheduled to start this week, "due to the approach of the Iranian New Year" but that if people were back in their offices soon after the holiday, which starts next week, then IAEA inspectors could come.
The IAEA, which verifies the nuclear Non-Proliferation Treaty (NPT), has since February 2003 been working to determine whether Iran's nuclear programme is peaceful, or devoted to secretly developing atomic weapons, as the United States has charged.
"Today IAEA inspectors were expected to arrive in Iran," Rowhani said. "We will not allow them to come until Iran sets a new date for their visit. This is a protest by Iran in reaction to the resolution."
Asked whether the freeze was indefinite, Rowhani said "yes."
ElBaradei said he was confident Iran would reverse a decision to temporarily suspend inspections of its suspect nuclear facilities.




Iran freezes int'l inspections of nuclear facilities
By The Agencies
TEHRAN - Iran imposed Saturday an indefinite freeze on international inspections of its nuclear facilities in protest against a critical resolution passed by the International Atomic Energy Agency.
Iran's top nuclear negotiator, Hasan Rowhani, described the IAEA resolution as "unfair and deceitful."
Hours earlier, a meeting of the UN agency in Vienna had censured Iran for hiding suspect activities, but praised it for increased nuclear openness.
The head of the UN nuclear watchdog agency said on Saturday he believed Iran would reverse its decision to halt UN inspections of its atomic sites
"I am pretty confident that Iran will understand that we need to go within [our] time schedule and that the decision to delay the inspections will be reviewed and reversed in the next few days," International Atomic Energy Agency [IAEA] chief Mohamed ElBaradei said.
The resolution welcomed Iran's agree to open its facilities to pervasive inspection, but said it "deplores" recent discoveries of uranium enrichment equipment and other suspicious activities that Iran had failed to reveal.
"Today IAEA inspectors were expected to arrive in Iran," Rowhani told a press conference in Tehran. "We will not allow them to come until Iran sets a new date for their visit. This is a protest by Iran in reaction to the passage of the resolution."
Asked whether the freeze was indefinite, Rowhani said "yes."
Under an agreement that Iran signed last year, and which the IAEA resolution welcomed, IAEA inspectors are empowered to inspect Iran's all nuclear facilities at any time and without notice.
Rowhani, who chairs the Supreme National Security Council, made clear this dispensation had been suspended. Asked when IAEA inspectors might visit again, he replied: "It could be less than six weeks. It could be more than six weeks. we have not set a date."
He accused the IAEA board of governors of passing a resolution that failed to take account of Iran's behavior toward the UN agency.
"Iran's comprehensive cooperation with the IAEA has not been properly reflected in the resolution, and there is a big gap between realities on the ground and what is said in the resolution. Unfortunately, the views of nonaligned countries, as well as China and Russia, have not been taken into consideration," Rowhani said.
Nonaligned members of the IAEA are known to have tried to tone down the language of the resolution. Western powers, foremost the United States, wanted to send a strong warning to Iran.
The United States suspects Iran is undertaking a secret program to build nuclear weapons. Iran denies this, argues that its nuclear program is only for the generation of electricity.


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>> QUOTE "The investigation is ongoing and politically sensitive."


For sale: nulcear expertise
Emerging details about a Pakistani scientist's network raise questions about how far it spread sensitive technology - and why authorities didn't stop it sooner
BY DOUGLAS FRANTZ AND JOSH MEYER
Los Angeles Times Service
VIENNA, Austria -- Pakistani scientist Abdul Qadeer Khan presided over a nuclear smuggling operation so brazen that the government weapons laboratory he ran distributed a glossy sales brochure offering sophisticated technology and shipped some of its most sensitive equipment directly from Pakistan to rogue countries such as Libya and North Korea.
The brochure, with photos of Khan and an array of weapons on the cover, listed a complete range of equipment for separating nuclear fuel from uranium. Also for sale were Khan's ''consultancy and advisory services,'' and conventional weapons such as missiles, according to a recently obtained copy of the brochure.
Although Pakistan has stopped Khan, the brochure is among the emerging details of the scope of his enterprise. They raise new questions about how far Khan's network spread nuclear know-how and why authorities didn't move against it sooner.
The extent of the ring remains unknown, and even some of Khan's suppliers might not have known they were involved. Inspectors from the Vienna-based International Atomic Energy Agency and intelligence and law enforcement authorities on three continents are trying to reconstruct what they consider the worst nuclear proliferation network in history, and to dismantle it.
Top diplomats in Vienna and senior U.S. officials say they are urgently trying to determine whether blueprints for a nuclear warhead and designs to build the device, which were sold to Libya, and highly sensitive data and equipment shipped to Iran and North Korea, might have spread beyond those countries. In addition, investigators have not been able to account for much of the equipment the network bought.
''Who knows where it has gone?'' said a senior U.S. intelligence official, who described the Bush administration as deeply worried. ``How many other people are there? How widespread was it, and how much information has spread?''
Questions also are being asked about whether the United States missed opportunities to stop Khan. The Pakistani scientist's full-service nuclear trafficking network operated for nearly two decades, often under the cover of his government lab, even as Western intelligence agencies grew more suspicious of him and senior U.S. officials repeatedly protested to Pakistan.
CIA director George J. Tenet said last month that the agency penetrated elements of the smuggling ring in recent years but needed proof to stop it. Other administration officials and outside experts suggest, however, that at least parts of the enterprise could have been shut down.
''If you have penetrated the system, why not stop it before Libya got the weapons design?'' a senior European diplomat based in Vienna asked. ``There is no limitation on a copying machine.''
The investigation is ongoing and politically sensitive. Among the new details that have emerged:
* Sensitive equipment discovered at nuclear-related sites in Libya carried the name of Khan Research Laboratories, adding to what authorities describe as irrefutable evidence that his center illicitly shared its technology with a country under United Nations sanctions for supporting terrorism.
* Evidence indicates that Khan provided Pakistan's state-of-the-art centrifuge machines to North Korea in the late 1990s. Two Western diplomats described the information as preliminary, but they said it deepens concerns about North Korea's progress in enriching uranium for atomic weapons.
* Authorities at the IAEA last month reopened an investigation of an alleged offer by Khan to sell nuclear technology and a weapons design to Saddam Hussein in 1990. The inquiry started in 1995 with the discovery of memos in Iraq, but it hit a roadblock when Pakistan called the offer a hoax.
CONCERNS WERE RAISED
U.S. intelligence officials and diplomats say they have known the broad outlines of Khan's activities since at least 1995.
Three times from 1998 to 2000, President Clinton raised concerns about nuclear technology leaking from Pakistan to North Korea during private meetings with Prime Minister Nawaz Sharif and President Pervez Musharraf, the general who replaced him in a 1999 coup.
In each case, President Clinton was assured that these concerns would be looked into and would be dealt with appropriately, recalls Karl Inderfurth, who as assistant secretary of State was Clinton's chief South Asia troubleshooter.
''To my knowledge, we did not receive any satisfactory responses to our concerns. It is now clear the smoke we saw at the time was indeed the fires being set by A.Q. Khan,'' Inderfurth said.
The U.S. concerns were inherited by the Bush administration, and fears escalated after disclosures in late 2001 that two Pakistani nuclear scientists had met twice that year with Osama bin Laden in Afghanistan.
In response to U.S. pressure, Musharraf removed Khan in March 2001 as head of Pakistan's main nuclear weapons laboratory, where he had developed fissile material for atomic weapons as well as long-range missiles. Musharraf continued to deny that nuclear secrets had leaked, and Khan continued to hold international nuclear conferences and to travel widely.
The denials finally collapsed late last year after Iran was forced to open portions of its nuclear program to IAEA inspectors and Libya voluntarily renounced its weapons program.
Although the Iranian disclosures provided strong hints, reams of documents and nuclear hardware turned over to the United States and IAEA by Libya pointed the finger squarely at Khan.
The most alarming documents were blueprints for the nuclear warhead, say diplomats and U.S. officials involved in the process.
The plans were for a warhead developed in the 1960s by China, which provided early help to Pakistan's nuclear program. Two diplomats in Vienna said Khan sold the blueprints to Libya in late 2001 or early 2002 for as much as $20 million.
Inspectors in Libya also found the equipment from Khan's laboratory and components for two generations of Pakistani centrifuges. Diplomats in Vienna said complete versions of the earliest type of centrifuge, known as the P1, were obtained directly from Pakistan and components for the next generation P2, which was faster and more efficient, were manufactured for the network at a Malaysian plant.
CENTRIFUGES' USE
Centrifuges are used to purify uranium for use as fuel for nuclear power plants or to enrich it to high levels for use in bombs. Experts say obtaining highly enriched uranium or other fissile material is the most crucial step in building an atomic weapon.
Weeks before Libya gave up its secrets, Iran had made a more limited disclosure to the IAEA of how it obtained drawings and components for 500 P1 machines through middlemen associated with Khan's network.
Iran acknowledged in January that it also had received plans for the more advanced P2 from Pakistan. Diplomats said Tehran had taken halting steps to develop those machines.
''What the Iranian and Libyan cases did was produce actual items so that you can't deny them,'' said another diplomat in Vienna. ``Until this breakthrough, I don't think anyone had real hard evidence.''
By the time Pakistan was forced to move against Khan, however, Iran had used his technology to develop its own uranium enrichment cycle, moving closer to what the United States says is an effort to build a nuclear bomb. And Libya had the warhead designs for more than a year.
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Poverty and inequality
A question of justice?
Mar 11th 2004
From The Economist print edition
The toll of global poverty is a scandal. But deploring economic "injustice" is no answer
Corbis
HUNDREDS of millions of people in the world are forced to endure lives of abject poverty--poverty so acute that those fortunate enough to live in the United States, or Europe or the rich industrialised parts of Asia can scarcely comprehend its meaning. Surely there is no more commanding moral imperative for people in the West than to urge each other, and their governments, to bring relief to the world's poorest. And what a tragedy it is, therefore, that many of the kind souls who respond most eagerly to this imperative bring to the issue an analytical mindset that is almost wholly counterproductive. They are quite right, these champions of the world's poor, that poverty in an age of plenty is shameful and disgusting. But they are quite wrong to suppose, as so many of them do, that the rich enjoy their privileges at the expense of the poor--that poverty, in other words, is inseparable from a system, capitalism, that thrives on injustice. This way of thinking is not just false. It entrenches the very problem it purports to address.
Symptomatic of this mindset is the widespread and debilitating preoccupation with "global inequality". Whenever the United Nations and its plethora of associated agencies opine about the scandal of world poverty, figures on inequality always pour forth. (Such figures, though, are always higher than the likely reality: see article) It is not bad enough, apparently, that enormous numbers of people have to subsist on less than a dollar a day. The claim that this makes in its own right on the compassion of the West for its fellow men is deemed, apparently, too puny. The real scandal, it seems, is that much of the world is vastly richer than that. The implication, and often enough the explicit claim, is that the one follows from the other: if only we in the West weren't so rich, so greedy for resources, so driven by material ambition--such purblind delinquent capitalists--the problem of global poverty would be half-way to being solved.
Equity at a price
Certain ideas about equality are woven into the fabric of the liberal state, and quite inseparable from it: first and foremost, equality before the law. But equality before the law, and some other kinds of liberal equality, can be universally granted without infringing anybody's rights. Economic equality cannot. A concern to level economic outcomes must express itself as policies that advance one group's interests at the expense of another's. This puts political and ethical limits on how far the drive for economic equality ought to go. (Strictly practical limits, as well, since too noble a determination to take from the rich to give to the poor will end up impoverishing everyone.) It also means that perfect economic equality should never be embraced, even implicitly, as an ideal. Perfect economic equality is a nightmare: nothing short of a totalitarian tyranny could ever hope to achieve it.
The preoccupation bordering on obsession with economic equality that one so often encounters at gatherings of anti-globalists, in the corridors of aid agencies and in socialist redoubts in backward parts of the world reflects a "lump of income" fallacy. This remarkably tenacious misconception is that there is only so much global income to go around. If the United States is consuming $10 trillion worth of goods and services each year, that is $10 trillion worth of goods and services that Africa cannot consume.
But goods and services are not just lying around waiting to be grabbed by the greediest or most muscular countries. Market economics is not a zero-sum game. America consumes $10 trillion worth of goods and services each year because it produces (not counting the current-account deficit of 5% or so of the total) $10 trillion of goods and services each year. Africa could produce and consume a lot more without America producing and consuming one jot less. It so happens that the case for more aid, provided of course that it is well spent, is strong--but the industrialised countries do not need to become any less rich before Africa can become a lot less poor. The wealth of the wealthy is not part of the problem.
To believe otherwise, however, is very much part of the problem. For much of the 20th century the developing countries were held back by an adapted socialist ideology that put global injustice, inequality and victimhood front and centre. Guided by this ideology, governments relied on planning, state monopolies, punitive taxes, grandiose programmes of public spending, and all the other apparatus of applied economic justice. They also repudiated liberal international trade, because the terms of global commerce were deemed exploitative and unfair. Concessions (that is, permission to retain trade barriers) were sought and granted in successive negotiating rounds of the General Agreement on Tariffs and Trade. A kind of equity was thus deemed to have been achieved. The only drawback was that the countries stayed poor.
Towards the end of the century, many developing countries--China and India among them--finally threw off this victim's mantle and began to embrace wicked capitalism, both in the way they organised their domestic economies and in their approach to international trade. All of a sudden, they are a lot less poor, and it hasn't cost the West a cent. In Africa, too, minds are now changing, but far more slowly. Perhaps that has something to do with the chorus that goes up from Africa's supposed friends in the West, telling the region that its plight is all the fault of global inequality, "unfair trade" and an intrinsically unjust market system.
Heed the call
People and their governments in the West should heed the call of compassion, and respond with policies to help the world's poor, and indeed to advance the opportunities of the (much less desperately) poor in their own countries. Expressed that way, the egalitarian impulse is a good thing, worth nurturing. But a compassionate regard for the poor, as any good Marxist will tell you, is a very different thing from a zeal for economic "justice". That zeal, despite the exemplary fate of the socialist experiment at the end of the 20th century, guides a great deal of thinking still. And it continues to do nothing but harm.
Copyright ? 2004 The Economist Newspaper and The Economist Group. All rights reserved.


Posted by maximpost at 8:23 PM EST
Permalink

Welfare Mouse

How Michael Eisner succeeded in turning Disney into the subsidized kingdom

RiShawn Biddle



Michael Eisner doesn't have a whole lot going for him these days. First he endured Walt Disney Co. heir Roy E. Disney's effort to push him out as Chief Mousketeer, then cable giant Comcast Corp.'s attempt to snap up the Walt Disney Co. on the cheap. Then last week came the annual meeting, where a record 43 percent of shareholders voted against keeping him as chairman of the board. He promptly resigned the post, but still maintains control of the unhappiest place on earth--for now.

Whatever eventually happens to Eisner, one thing is assured: He has helped Disney achieve a place as one of its biggest beneficiaries in the annals of corporate welfare.

Scrooge McDuck would be proud. Few have panhandled for taxpayer dollars as successfully as Disney during Eisner's reign. It has received at least $4.5 billion in subsidies, low-interest loans, land grants and "joint venture" investments from governments in Florida, Pennsylvania and Hong Kong. It even managed to get a handout from the French government--not exactly a fan of things American--which sold 4,800 acres just outside of Paris to Disney at a 90 percent discount so the company could build Euro Disneyland.

Disney has gotten even sweeter deals closer to its home base in Southern California. In Glendale, just a short trip from its Burbank headquarters, Disney's 125-acre Imagineering campus and studio development is being financed with the help of the city's redevelopment agency. Further away in Anaheim--home of Disneyland--the company got the city fathers to fork over another $550 million on new roadways and create a special tax district in exchange for building its now-floundering California Adventure park.

It has even become adept at getting financial help from Washington in the indirect form of copyright protection. To keep Mickey Mouse, Pluto and other characters out of the public domain, it successfully lobbied Congress for the Sonny Bono Act, which extended the life of its copyrights from life plus 50 years to life plus 70--restraining free speech in the process. Funny since Beauty and the Beast and Aladdin draw heavily from works that have long ago become fodder for public use.

Disney doesn't exactly need the welfare cheese. Last year, it generated $27 billion in revenues from its sprawling collection of studios, theme parks, and television channels. But Eisner has admitted some of its projects wouldn't work out as stand-alone private sector operations. "Disney's America wasn't economically viable without government subsidies," he wrote about one such plan in Work in Progress, his 1998 biography.

The company has been able to wrangle subsidies through promises of revitalizing communities, along with the mystique that comes with being in the House of Mouse. Helping out, of course, is the penchant for city officials to hand over the treasury for any hare-brained scheme. "It's the pixie-dust factor," said Rollins College Professor Richard Foglesong, the author of the aptly-titled Married to the Mouse, which chronicles Disney's dealings in Florida.

When it announced it was looking to build a second theme park in California, Disney used promises of economic improvement to get officials in Anaheim and Long Beach to offer it sweet subsidy packages (Anaheim won.). To garner subsidies for an indoor theme park project in Philadelphia, it even convinced then-Mayor Edward Rendell, now governor of Pennsylvania, to co-star in a promotional video, in which he bounds around with Goofy. It worked.

With his penchant for micromanaging, Eisner dons the mouse ears of chief rainmaker for the big projects. During Disney's failed effort to build an American history-themed amusement park near the Bull Run battle site in Manassas, Va., Eisner worked with then-Gov. George Allen to get a $160 million package of subsidies and "tourism marketing" dollars through the state legislature. When it had to back out of the project after outcry from historians and local residents, Eisner flew to Richmond to tell the governor the bad news.

Disney had certainly done some wheeling and dealing with government officials before Eisner came along. To get Walt Disney World off the ground in 1967, it convinced Florida officials to create the Reedy Creek Improvement District under the premise that it would develop a residential community, according to Foglesong in Married to the Mouse. That concept, called EPCOT, wound up being just a golf ball-shaped attraction at the theme park. But Reedy Creek remained, shielding Disney from local land use laws enacted by Osceola and Orange counties, in which sprawls the district and Disney World.

After Eisner took over in 1984, the company began to garner more generous subsidies. In 1989, it got $57 million in bond money that was originally slated by Orange County for affordable housing projects, then got $57 million more a few years later to finance a turnpike extension that leads straight onto Disney property--and nowhere near that county's boundary line.

These deals have worked out for Disney. For the municipalities themselves? A mouse trap. Disney abandoned the Philadelphia project in 2001 after years of delays, leaving the city on the hook for $55 million, according to one estimate. In January, Osceola County issued bonds to repay $35 million to Disney's Reedy Creek for guaranteeing bonds on the turnpike extension on Disney's property.

Now with Eisner's future in question, Disney may end up losing its key tool in getting more taxpayer dollars. But it'll probably be okay in that department. Besides its name and its own group of lobbyists, it also has its new chairman, George Mitchell, to step in and help bring in more subsidies. After all, if the former Senate Majority Leader can bring peace to Northern Ireland, he can probably get Mickey more cheese.



RiShawn Biddle, Reason's Burton Gray Memorial Intern in 1999 and the proprietor of www.rishawnbiddle.com, has written for Forbes and The Weekly Standard.
--------------------------------------------------------------------------------

For the Want of a Bra

The Senate Commerce Committee vs. Free Speech

Nick Gillespie





For the want of a bra, free speech was lost.

Well, not exactly, but if the recent actions by the U.S. Senate's powerful Commerce Committee are any indication, the future of free speech may be hanging by threads as sheer as the ones in a Victoria's Secret mesh babydoll.

The Washington Post reports that the Commerce Committee is paving "the way for a broad crackdown on offensive radio and television programming, including extending stiff fines to artists, limiting violence and temporarily preventing broadcasters from owning more stations until potential links between media consolidation and indecency on the airwaves can be studied."

The Senate committee followed the lead of its counterpart in the House of Representatives and has agreed to increase fines for "indecency." If things go Congress' way, first-time offenses by broadcasters will draw a maximum fine of $275,000, or 10 times the current amount. The per-incident fines will then increase to as much as $500,000. Going beyond restrictions being developed by the House, the Senate committee is also pushing to double all fines if the offending material is "scripted or planned in advance, or if the audience [is] unusually large" (no more Super Bowl botch jobs, thank you). On top of all that, the committee wants the Federal Communications Commission to set rules disallowing "violent" shows when kids are likely to be listening or watching. And then there's that moratorium on the loosened ownership caps passed last year until the General Accounting Office nails down the specifics of the "relationship between indecent programming and media consolidation."

The good news? The committee voted down, by a slimmer-than-slim 12-11 vote, a provision that would have given the FCC the right to regulate the content of basic cable and satellite programs in the same way it does TV and radio broadcasts.

So it turns out that the outraged pols and social critics were absolutely right when they fumed that Janet Jackson's notorious Super Bowl half-time show nipple-baring really did drive some Americans stark raving nuts. It's just that they were talking about themselves more than the population at large, which seems mostly willing to move on (after all, there's a new season of the violence-and-sex-drenched The Sopranos to catch). But for all too many members of America's political and chattering classes, beholding the slutty songstress's galvanized areola was the psychic equivalent of staring directly into a total eclipse of the sun, blinding them with indignation, outrage, and national shame.

Of course, the Nasty Girl didn't inspire such righteous apoplexy all on her own. She's had help over the past few months from "categorically indecent" Victoria's Secret lingerie shows; the foul-mouthed award-show ejaculations of U2's Bono; the verboten utterances of public radio monologuist, middle-aged housewife, and admitted knitter Sandra Tsing Loh; and the unmediated racism of Howard Stern callers, among others.

How seriously should we take any of this new congressional and regulatory activity? Given the unprecedented level of free expression we have and the ineffectiveness of past regulatory schemes such as the V-chip and past threats of content crackdowns from elected officials, it's easy to laugh off these latest legislative efforts. At best, they represent election-year pandering and, at worst, they will act as a minor drag on an unstoppable culture boom that gives all of us greater and greater opportunities to produce and consume more and more media.

Yet as Buzzmachine's Jeff Jarvis reminds us, "Once the government gets in the business of content [regulation]...then there is no stopping them. Slide down that slippery slope. Today, Howard Stern is offensive. Tomorrow, Sandra Tsing Loh on knitting is. Tomorrow, they try to regulate cable and not just broadcast. The next day, they go over the Internet (where, after all, there's lots of dirty, nasty, offensive stuff). This isn't about Howard. It's about you." If Jarvis seems a bit overanxious, it's worth remembering that it's only been a few years since the federal government almost succeeded in applying stultifying content regulation to the Internet. And it's only been a few decades since such obscene garbage as Lady Chatterley's Lover, Tropic of Cancer, and Fanny Hill (among others) were fully cleared for publication in these United States.

I'm far more confident than Jarvis that audiences and producers will always be able to route around censorship and regulations, especially the relatively mild sort of restrictions that would eventually pass constitutional and popular muster. This is especially true because technology continues to make it harder for all sorts of suppression. But he's right to emphasize the underlying logic behind the sorts of legislation and policy that are making the rounds in Washington, D.C. Just because censorship is unlikely to work is no reason not to stand against it in the first place. And in the second and third place, too.



Nick Gillespie is Reason's editor-in-chief.
----------------------------------------------------------------------
Meet Hizbollah

The Party of God's MP talks about Islam, Iraq, and the war on terror. A Reason interview

Tim Cavanaugh



Mohammed Fneish is a Hizbollah (Party of God) representative in Lebanon's parliament. Fneish represents the Bint Jbeil district. He spoke with reason late last year at Hizbollah's office in Beirut.



reason: Hizbollah's originally stated mission was to drive the Israeli military out of south Lebanon. The Israelis have been gone for four years. What do you see as your purpose now?

Mohammed Fneish: It's true that Hizbollah began as a resistance movement, and it still is. In the process of carrying out our mission we've been able to build foundations that met the society's educational and social needs--and even political needs, by participating in elections.

It's true that Israel left parts of Lebanon's territory, but not all of it. It also hasn't stopped its attacks on Lebanon. Lebanon's problem from the beginning has not been a local one only. Its troubles have been nourished by the conflict with Israel, and that has created an ongoing national security problem for us. For as long as there is no security in the region, Lebanon will never be at peace. We can't take lightly the need for our organization.

reason: Saddam Hussein brutally repressed the Shi'a Muslims in Iraq--your co-religionists. Now that he's gone, the Shi'ites have more freedom than they've had in 20 years. Why does Hizbollah remain so strongly opposed to the U.S. mission in Iraq?

Fneish: The party has nothing to do with Iraq. The party had an opinion on Iraq, as did every other group--the whole world had an opinion about Iraq. And in general, the majority of opinion around the world opposed the war, because people were not convinced by the reasons given. And as has been proven, all of these reasons given by the American administration were false. Of course, before he attacked Kuwait, Saddam received much support from the U.S. In general, nobody is sorry to see Saddam go. His regime was unjust, harsh, and homicidal.

But we have to distinguish between whether Saddam was overthrown for the good of the Iraqi people or for the good of American ambitions.

In terms of the new situation in Iraq, that's the Iraqis' responsibility. But we would like to ensure and protect international laws. The occupation shouldn't go on, but more important, the U.S. shouldn't act apart from the international community. And the current occupation shouldn't go on at all without the will of the Iraqi people. In the end, only they can decide their future, and their political system.

reason: Does Hizbollah have any contact with the resistance fighters in Iraq?

Fneish: No. The party has an opinion on the U.S. occupation, but it is up to the Iraqi people to determine how to react to that presence. Do they want to throw roses on them? Rocks? Whatever they decide, that's their right. We as Hizbollah have nothing to do with what other nations do. We can't be a resistance party for other nations. We only represent our own people and country. Other than that, it's not our business.

reason: The resistance in Iraq has been extraordinarily violent toward the Shi'ites.

Fneish: This is absolutely unacceptable. I've been speaking about resistance, but I did not mention anything about tactics or principles. I'm not speaking about murdering Iraqis, aiming at government organizations, or killing civilians. That is not resistance, and it's not legitimate.

reason: So you say the party has not been providing any assistance--financial or military--to the resistance in Iraq?

Fneish: None at all. Anybody who says so, let him show some proof. The party's primary mission is to resist the Israeli occupation.

reason: Hizbollah is widely viewed in the United States as a potent anti-American force. Can you imagine ever having better relations with the U.S.?

Fneish: The party is not against the United States. To be clear: The American administration has sided with Israel and makes false accusations against Hizbollah. We don't have any problem with the United States other than its position on Israel. We have not attacked the United States. We grew up with the Israeli occupation in Lebanon, so we formed a resistance movement. The U.S. considered that movement an opponent of the United States. Just to be clear, I'm speaking of the American administration, not the American people. Our problem is with the American political decision to side with Israel and oppose our people and our concerns. The future of our relationship with the United States depends on a change in American policies; if there's ever a change, we have no problem with the United States.

reason: Do you seek to improve relations with the U.S.?

Fneish: In the near future, I don't think it's possible for relations to improve. There is a very unnatural conflict. We're resisting an occupation, and the U.S. wants to stop the resistance rather than the occupation. We're trying to liberate our land and the U.S. supports Israel in taking our land. So how is an improvement in relations possible?

reason: Do you consider the United States hostile toward you?

Fneish: Of course. The United States is totally against us, but it's the United States that decided to take that position. That position isn't only against Hizbollah. Look around the entire Arab and Islamic world. What's the proportion of people who believe the U.S. is hostile toward them and undermines their concerns? But Hizbollah is an active force, and that's why there's a particularly heavy American hand against us. Because what is Hizbollah's crime? That we stood up to Israel and didn't let Israel achieve its goals in Lebanon? That we caused Israel its first defeat? Is that all of our crime?

reason: Right now the United States is fighting against terrorist groups of global reach and anybody affiliated with them.

Fneish: The claim that Hizbollah has relations with any other group is a lie--among many other lies, all aiming to taint the image of the resistance and to distort the facts. There is a problem here, and that is called occupation. Where is the evidence of Hizbollah's having a role with anybody in any activities outside our conflict with Israel?

It's easy to make accusations. If we want to total up all the lies the United States has told about Iraq alone, it's a huge sum. So any language that doesn't depend on proof is just an accusation. These accusations are part of a hostile agenda involving media and politics.

reason: Do you try to do anything to change that opinion?

Fneish: Of course, we try as much as we can.

reason: Current U.S. policy would seem to be good for Shi'a Muslims. The overthrow of Saddam has freed the Shi'ites in Iraq, and the U.S. is also opposing Osama bin Laden, whose group considers Shi'ites heretics. Even if you disagree with or suspect the motives of the United States, wouldn't you have to agree that these policies have been helping your fellow Shi'ites?

Fneish: The United States is trying to take advantage of all the mistakes in the Muslim world to benefit itself. The U.S. gives itself the right to attack other countries and bypass all international laws. We can recognize that there is a certain political regime that is dangerous. But nobody has the right to appoint himself the world's police force. If the U.S. really wants to face terrorism, then it has to define terrorism. Because there's a difference between terrorism and resistance, but the U.S. never wants to see a distinction.

The other thing is that initially, when Osama bin Laden was serving its agenda against the Soviet Union, the U.S. was in accord with him. Back then the U.S. had no problem with how bin Laden thought about the Shi'a, or about Muslims, or about people in general.

So we need to clarify what you said in your question: We cannot separate the motives from the actions. As a man of principle, I see the American administration doing the same thing bin Laden was doing. Bin Laden wants to bring back the law of the jungle, and the United States is trying to bring it back with him. This does not help humanity.

Are the Americans a human rights organization trying to serve the rights of the people in the region? Of course not; even they're not claiming that. They're establishing a new empire in the world. Why haven't the prisoners in Guantanamo received trials? There are laws of civilization, and the United States is breaking all of them.

reason: What about relations with Israel? You've conducted complicated negotiations over exchanging prisoners with the Israelis. Would you be willing to negotiate with them on other matters?

Fneish: The party has its own belief and its own founding vision. Israel was formed at the expense of the Palestinian people and their rights. For us, this existence is immoral and illegitimate, because it creates great hardship and suffering for a downtrodden people. And all this is so Europeans can ease their own guilt about what they did to the Jews. So indirectly, the Europeans are the cause of the Palestinians' suffering. Of course, not all of this was done for moral reasons; there was also a predetermined political plan for the region. Therefore, as long as the Palestinian people can't go back to their land, there will be a problem in the region. So for sure, Hizbollah can't have relations with an entity formed out of crimes against other people.

We are seeing negotiations and discussions. Despite all the circumstances, the Arabs have always tried to negotiate, but those efforts have always been ridiculed and undermined. All we see are more settlements, more hostility, more evictions, and more destruction of homes.

reason: It sounds like you could never have normal relations with Israel under any circumstances.

Fneish: We as a party have our own opinion and our own role. Our views are for the interest of the whole country, and we oppose any relations. But we're only speaking for the party; the government speaks for itself.

reason: When you say you oppose, do you oppose Israel's existence, or just having relations?

Fneish: Both.

reason: Would you continue to fight Israel just on the basis of that existence?

Fneish: That's another issue. We're trying to make Israel step back as an enemy that is attacking us. We fought the Israelis only on Lebanese soil. Before we talk about fighting their existence, there is a problem here. There's a Zionist project. Let's be realistic. It's clear there is a Zionist mentality, which is clannish, sectarian, and belligerent.

I didn't say I want to fight Israel on the basis of its existence. I spoke of a position. There is a difference. If today a country in the world occupied another country, and I said that country is aggressive and I want nothing to do with that country, that doesn't mean I want to fight that country. The subject of war is a different thing. But nobody can force me to say that country is legitimate.

reason: Lebanon is a pretty permissive society, where people drink alcohol, women do whatever they want, people wear whatever they want, and so on. Would you like to change that?

Fneish: In Lebanon there is freedom. We respect the freedom of the Lebanese, and the freedom of any people. We have our own views about personal conduct, but those views concern us. We try to convince others of our views, but we don't impose them on anybody. It's our right to try to persuade others of our views, but it's also the right of others to share their own views and opinions.

But that does not mean that if we disagree we will resort to imposing our views. For example, right now people see us as dominant in a particular region of the country. Did we impose our way of living on anybody? You see in the [majority Shi'ite] suburbs of Beirut those who are committed and those who are not. You find women with hijabs and others without, and we have no problem with that.

reason: If you could, would you establish an Islamic state in Lebanon?

Fneish: Nobody can force a political system on a society that doesn't have the characteristics proper for that system. Lebanon is a country with freedoms and a variety of ways of living. We respect that variety and we live with it. The Lebanese political system will reflect that variety. We can exchange views on what we believe, but not once has our party said it wants to create an Islamic political system in Lebanon. All we ask for is a government that has the principles I've mentioned: respect for people's freedom, justice, equality, and leadership that express the will of the people.

reason: Gibran Tueni, the editor of al-Nahar newspaper, commented to me recently that Hizbollah always says it won't establish an Islamic state by force, but doesn't rule out establishing one through political means.

Fneish: Today in Lebanon there are native people of Christian origin. There are 18 different religions. Inside each of these, different political groups support different views, political programs, and agendas. We are one of these groups. It's possible that we differ from these others in our commitment to what we believe in as Muslims. But the way we deal with our society is not by aiming to force Islam on anybody, or to bypass reality. In the society of Lebanon, with all its freedoms, could I stop a Christian from converting to Islam, or a Muslim from converting to Christianity? Nobody could. Could I stop anybody from agreeing with Hizbollah's views? Nobody could. The government does not come from above the people. It comes up from the people. We don't have any plan for an Islamic government because a government can't be separated from its people.

reason: What did you think of Afghanistan, where the Taliban did force their system on the country?

Fneish: The Taliban movement was the greatest threat to Islam. In their way of understanding, believing, and practicing, they were very bad for Islam. We were never in accord with them or their beliefs.

reason: If you had agreed with their way of practicing Islam, would you have favored their way of running the country?

Fneish: No, that's not possible. To agree with them on practices is one thing. To agree with them on forcing your authority is another. Authority does not exist without the will of the people. And beyond that, their understanding, their school of Islam, was not true.

reason: So in your opinion, there is no country where an Islamic political system has been forced on the people?

Fneish: Let me tell you something. Today there are Islamic nations and political systems, for sure. And there are, worldwide, very few political systems that reflect the will of the people. In my opinion, among the Islamic governments, only the system in Iran came as an expression of the will of the people. This is a system that I agree with to a large degree, in my principles and in my thoughts and beliefs. But I don't agree necessarily with all the political and administrative decisions in Iran.

reason: What do you think when you see how many Lebanese consider your group a threat to the country? In the place where I'm staying, everybody seemed pretty nervous when I told them I was interviewing somebody from Hizbollah.

Fneish: Where are you staying?

reason: In the Koura [a majority Orthodox Christian region in North Lebanon].

Fneish: (Laughs) The Koura! I thought people were a little more open up there.

There are responsibilities on both sides. We have a responsibility to be clear with people about who we are. It's possible that in the beginning the nature of our situation kept us from being open with the media. We did not have a media presence and weren't interested in having it, because our mission in the beginning was very hard. More recently, we have come to recognize the importance of being out there: We have seats in the parliament, a media presence, and a political presence. I tell you, those who read and who communicate with us can find out what they want to know.

But we ask of others that they not form a premature opinion of us that never changes. Because how did that opinion form? Did it form by communicating with us or reading our literature? It's possible that this opinion was formed by listening only to propaganda or rumors. You know how rumors go around in Lebanon; and we had a pretty unusual war here. Things are much better today.

reason: Hizbollah has close relations with Iran. Based on recent developments and statistics, it seems the Islamic movement in Iran has run out of steam. The economy is weak; the people are expressing a lot of dissatisfaction, and the government is using harsher means to control dissent. Do you think there's a future in this model of politics?

Fneish: There was a horrendous war forced on Iran. The system never had a chance to function under normal conditions. Look at the United States: After September 11, you came up with all sorts of new laws and emergency procedures to address the threat. Iran had 10 years of war, and 15 years of being surrounded by enemies. Of course that has an effect on the country.

Despite that--and I don't want to get too deeply into this because ultimately this is the business only of the Iranian people, and they're the ones who have to decide their own future--what I see is that there hasn't been a single election in Iran that failed to take place, even during the war. I see many different newspapers publishing. Today in Iran, all sides are having discussions. There are agreements and disagreements, obviously. There is no ideal system in the world. It's possible that the Iranian people have complaints--or, not to generalize, let's say some of the Iranian people have complaints, and ambitions for faster improvements. That is their right, but the way to get to that is through democratic and peaceful solutions, and not by demolishing the system. You can't blame everything on the system.

reason: There aren't many success stories among the Muslim countries, particularly in the Arab world. What do you think of a country like Malaysia, a majority Muslim country that has enjoyed a lot of economic success? What do they have that Syria or Jordan doesn't?

Fneish: Every nation has its own circumstances. A nation has its own history, culture, and traditions. Malaysia for sure has set a great example, and provides proof that progress isn't limited to a certain type of country or religion. All nations have the capacity for improvement, but sometimes they lack the right programs, the right politics. It's unfair to compare Malaysia to any of other Islamic countries, because the circumstances differ.

In general, Islamic countries have not had political freedom and have mismanaged their resources. The policies in most countries have not promoted an active population. In the countries you mentioned, the situation has been worse because of the conflict with Israel.

reason: By most accounts, Hizbollah is good at providing public services--schools, hospitals, orphanages, and so on--that the government has failed to provide. What is the difference now that you're working from inside the government?

Fneish: There was a war in Lebanon when the party started providing these services. There was not a functioning government, and you couldn't wait for the government to get back on its feet to start fixing the problem. So as much as possible the party responded to the people's needs.

However, that doesn't eliminate the need for government services. In any democracy, the civil society has an important role. The vision that the government does everything for the people is the wrong vision. The government should be taking a limited role in social services. It's human nature that people will help each other out, but when the government takes control of providing social services, people lose that instinct. We're an organization like many in Lebanon that provide services. We didn't add anything new; we just responded to a situation.

reason: What is Hizbollah's view on Syria's military presence in Lebanon, and its involvement in Lebanon's political affairs?

Fneish: I'm not going to recite all the historical stages of the war. Let us start with the Ta'if agreement [that ended Lebanon's civil war]. According to the Ta'if, Syria would end its occupation when the boundaries of Lebanon were secure. Israel's withdrawal from the south of Lebanon didn't happen according to the Ta'if but because they were forced out. Internal security never happened in Lebanon. All that affected the Ta'if schedule. Today, this has become a matter between Lebanon and Syria. There is a government in Lebanon; the government decides with whom it wants to have relations. The Syrian presence was, for sure, a consequence of the internal situation in Lebanon and the conflict with Israel. When these situations end, Syria will not stay another day. There is no disagreement on this point. At any rate, if you go today from North to South, you won't find any Syrian checkpoints in Lebanon.

reason: Was Hizbollah involved in the bombing of the Marines' barracks in Beirut in 1983?

Fneish: Our group wasn't even formed until 1985. There were many groups active in Lebanon in 1983.

reason: How do you pronounce the name of your organization? People say HizBOLLah and HizbollAH. Which one is correct?

Fneish: (Laughs) Whichever way it comes out of your mouth, we'll accept it.

More Reason interviews

Tim Cavanaugh is Reason's Web editor.


Posted by maximpost at 12:19 AM EST
Permalink
Friday, 12 March 2004

American Jihad Continues
by Robert Spencer
Posted Mar 11, 2004
Although most media attention has been focused on Martha Stewart, gay marriage, and the national waistline, the jihad continues in America.
The FBI and Coast Guard announced last Thursday that they have discovered nine members of the Merchant Marine who may have links to terrorist groups. This is the fruit of Operation Drydock, an anti-terror investigation that has lasted more than a year. These efforts, while laudable, only underscore the fact that terrorists have already begun to try to take advantage of the vulnerabilities of American seaports.
On the same day, three members of the "Virginia jihad network" were found guilty of conspiracy. Masoud Khan, Seifullah Chapman, and Hammad Abdur-Raheem, played paintball in 2000 and 2001 with a deadly serious purpose: they were training with the hope of joining the Taliban and waging jihad against the United States. Khan was also convicted of attempting to wage war against the U.S.
Sami Omar Al-Hussayen, formerly a high profile Muslim student activist at the University of Idaho, was charged, also on Thursday, with ties to Hamas. He maintains his innocence. FoxNews reported that he "was charged with conspiracy to provide material support to terrorism after federal prosecutors said he helped run Web sites that urge people to contribute money to Hamas."
In San Diego on Wednesday, March 3, Ilyas Ali, an American citizen, and Muhamed Abid Afridi, a Pakistani national, admitted to drug trafficking in order to raise money for weapons for the Taliban and Al-Qaeda. They were selling heroin and hashish to raise money for Stinger missiles.
On the same day, five Muslims were convicted in Buffalo of trafficking in untaxed cigarettes in order to get money for jihad. Mohamed Abuhamra, Aref Ahmed, Ramzy Abdullah, Nagib Aziz, and Azzeaz Saleh could get twenty years and $500,000 fines for using the smokes to try to raise money to help the the six jihadists from the Lackawanna, New York mosque -- the notorious "Lackawanna Six" journey to Afghanistan to join up with Al-Qaeda.
A member of the Kashmir jihad was arrested last week in Pennsylvania. Mohammad Aslam, a British citizen, was originally arrested for staying in the U.S. after the expiration of his visa. Through his fingerprints, however, he was identified as a member of the Jammu Kashmir Liberation Front, wanted for the kidnap and murder of the Indian diplomat Ravindra Mhatre in England in 1984. Mhatre was seized and killed in an attempt to secure the release from prison of the group's founder, Maqbool Bhat.
Sgt. Hasan Akbar is the Muslim soldier who attacked his own commanding officers in Kuwait last year while crying out, "You guys are coming into our countries, and you're going to rape our women and kill our children" -- a clear indication that his attack grew out of his identity as a Muslim. After a long period of silence, the Army announced last Thursday that it is going to go ahead with a court martial. Akbar could get the death penalty.
The Islamic Society of Boston (ISB) is building a new mosque which they intend to be one of the grandest in the country. Arabic-language brochures boast that the project has the backing of the radical Sheikh Yusuf Abdullah al-Qaradawi, an Egyptian now based in Qatar.
In English, the ISB claims that al-Qaradawi "has never played any role in the ISB." However, the Boston Herald reports that "records show al-Qaradawi's name was listed on federal tax forms as recently as 2001 as a member of the society's board of directors." The ISB is not alone in embracing Qaradawi: establishment Islamic scholar John Esposito has praised him as a champion of a "reformist interpretation of Islam."
Yet Qaradawi has justified suicide bombings, specifically praising such attacks against Israeli civilians. In this he works from tenets of Islamic law that forbid attacks against civilians unless they are aiding the war effort -- and Qaradawi sees everyone in Israel in this category. Also, according to the Herald, Qaradawi exclaimed at a Muslim youth group convention in Toledo in 1995: "We will conquer Europe, we will conquer America! Not through (the) sword, but through Da'awa [preaching]." The Herald adds that "in March 2003, al-Qaradawi issued a religious ruling, a fatwa, encouraging Muslim women, as well as men, to become suicide bombers in the name of Allah and jihad."
With the biases of the major media abundantly established, it will be interesting to see how much attention such stories receive as the election season kicks into high gear.

Copyright ? 2003 HUMAN EVENTS. All Rights Reserved.
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>> MULLAHWATCH...


The IAEA and Iranian cheating
The Board of Governors of the International Atomic Energy Agency (IAEA), currently meeting in Vienna, faces a tremendous challenge: what to do about a systematic, ongoing campaign of cheating and deception by Tehran.
It is already clear that once again, Washington and the European Union disagree about whether to take a forceful stance against Iran's refusal to tell the truth about its nuclear program. Undersecretary of State for Arms Control John Bolton sent a sharply worded letter to Britain, France and Germany stating that their soft stance toward Iran was undercutting common efforts to force the regime to give a full accounting of its efforts to produce atomic weapons.
Germany, France and Britain, representing the European Union, want to emphasize what they euphemistically term Iranian progress toward opening up and eventual dismantling these weapons programs. But their recent performance record is hardly encouraging.
Back in the fall, the three European countries announced that Iran had agreed to stop constructing uranium-enrichment centrifuges, which are used to build nuclear weapons. Then in January, Iran announced that it was building the centrifuges after all. In a remarkable act of impertinence, the regime claimed that the deal did not require that it stop all enrichment-related activities and that it had the right to continue amassing centrifuges. In short, the "EU 3" were hoodwinked.
Unfortunately, such behavior on Iran's part isn't new. In November, the IAEA issued a report documenting Tehran's cheating on nuclear weapons dating back to the mid-1980s. As a Feb. 24 IAEA report explained: "It should be noted that, given the size and capacity of the equipment used, the possibility cannot be excluded that larger quantities of nuclear material could have been involved than those declared by Iran as having been consumed and produced during this testing and experimentation. However, it is very difficult to account precisely for the uranium involved in these processing activities after the passage of many years, especially when some quantities have been discarded."
Tehran, emboldened by the willingness of the EU 3 to run interference against Washington, is digging in its heals. At the start of the IAEA parley, Iran's chief delegate predicted that U.S. efforts to get the agency to pursue a more assertive approach toward his government would fail. The government-controlled press denies that Iran has done anything wrong, and, on Sunday, threatened to stop any cooperation with the IAEA. Hassan Rowhani, a senior official with the country's Supreme Council for National Security, also demanded that Iran be recognized -- along with the United States, Russia, China, Britain and France -- as part of the world's nuclear club.
But this would be an intolerable outcome. The world would be a much more dangerous place if a violent, paranoid regime like that in Tehran were to become a recognized nuclear power. The clock continues to tick on a successful diplomatic conclusion -- and the hour is late.



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Iran Postpones Visit by U.N. Inspectors
Fri Mar 12, 9:20 AM ET
By GEORGE JAHN, Associated Press Writer
VIENNA, Austria - Iran postponed a planned visit by U.N. nuclear inspectors Friday, and American and European delegates at a key atomic agency meeting debated how harshly to censure Tehran for not fully opening its nuclear activities, diplomats said.
The inspectors were to be in Iran next week as part of the International Atomic Energy Agency's examination of the Iranian nuclear program, which the United States and other countries claim is trying to make nuclear weapons.
Pirooz Hosseini, the chief Iranian delegate to the IAEA, denied that Iran was trying to pressure the agency's board of governors, telling The Associated Press the scheduled inspections were postponed because they would conflict with next week's celebration of the Iranian New Year.
When asked why the celebrations were not taken into account when the invitations were first issued, Hosseini said officials made "a simple mistake."
The IAEA declined comment, but diplomats, speaking anonymously, said the postponement appeared to be an attempt by Iran to tone down an agency resolution addressing Tehran's spotty record of revealing past nuclear secrets and cooperating with the IAEA probe.
Iran, which insists its nuclear intentions are peaceful, has threatened repeatedly over the past few days to reduce cooperation with the U.N. agency if its 35-nation board of governors comes down hard on the Islamic republic.
Consultations were set to resume later Friday, and Hosseini indicated some progress was being made.
"Step by step, there are some better understandings among the parties," he said without elaborating.
On Thursday, the nonaligned bloc at the board of governors watered down a draft resolution backed by the United States, Canada, Australia and European countries. The Western group then rejected the draft as being too gentle on Iran.
The deadlock left Australian, Canadian and Irish diplomats shuttling between U.S. and nonaligned representatives trying to bridge the differences. A Western diplomat said on condition of anonymity that U.S. patience was wearing thin.
Another diplomat said the United States and the Europeans considered the nonaligned modifications unacceptable because they did not sufficiently criticize Iran's record on nuclear openness.
Recent discoveries by IAEA inspectors of undeclared items and programs have cast doubt on Tehran's assertions that it has no more nuclear secrets.
An IAEA report last month accused Tehran of hiding evidence of nuclear experiments and noted the discovery of traces of radioactive polonium, which can be used in nuclear weapons.
The report also expressed concern about the discovery of a previously undisclosed advanced P-2 centrifuge system for processing uranium.
Iran asserts its now-suspended enrichment plans are geared only toward generating power.
But on Wednesday, Iran announced plans to resume enrichment, eliciting a negative response from Mohamed ElBaradei, the IAEA chief, who said it would hurt Tehran's chances of proving it has no interest in nuclear weapons.
On the Net:
International Atomic Energy Agency: http://www.iaea.org
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>> OUR FRIENDS IN JAPAN...

Japan Company Sold Atomic Plant to Libya

By GEORGE JAHN, Associated Press Writer
VIENNA, Austria - A Japanese company supplied Libya with technology essential to the production of nuclear weapons, diplomats revealed Friday, adding a new piece to the nuclear black market puzzle.
One of the diplomats called the 1984 sale of a uranium conversion plant a "flagrant example" of the failure of export controls meant to keep such equipment away from rogue nations and terrorists.
He also noted that the parts for such plants are so large and expensive, it would have been difficult to ship them out of the country without the knowledge of the Japanese government.
The officials, who declined to be named, spoke to The Associated Press on the sidelines of a board of governors' meeting of the International Atomic Energy Agency, the U.N. nuclear watchdog.
In a report earlier this week, the agency mentioned that Libya ordered a "pilot scale uranium conversion facility" in 1984, but did not specify the country of origin.
Such plants are used in the process of enriching uranium that at lower levels can be used to generate power but at levels above 90 percent -- or weapons grade -- can be used in nuclear warheads.
Japan's top government spokesman, Yasuo Fukuda, said Tokyo was already looking into the matter.
"We are conducting an investigation. But we can't discuss the details of our investigation due to our previous agreement with the IAEA not to disclose anything," Fukuda said.
Libya admitted in December to having programs for weapons of mass destruction, including nuclear arms, and pledged to scrap them. Progress has been rapid since then, with a ship leaving the country for the United States last weekend carrying 500 tons of cargo -- the last of the equipment Moammar Gadhafi's government had used for its nuclear weapons program.
Among the most startling discoveries in Libya were blueprints of a nuclear warhead from Pakistan supplied by the black market network that also sold technology and know-how to Iran and North Korea (news - web sites).
The IAEA report also said Libya had managed to process minute quantities of plutonium that -- in much larger quantities -- are used in the cores of nuclear warheads.
The diplomats declined to identify the Japanese company involved, but described the conversion plant sale as unusual in several respects.
Unlike other deals made by Libya, Iran and North Korea, the sale was apparently directly arranged with the Japanese instead of through middlemen linked to a loose international nuclear sales network headed by Pakistani scientist Abdul Qadeer Khan. But other countries were involved because the packing material originated from outside Japan.
One of the diplomats said Japan's export controls were generally considered effective, suggesting the government must have known about the sales.
"Had Japan reported such a deal to the IAEA earlier, that could have helped to get an earlier start on" investigations of the nuclear black market, which was only exposed in recent months, he said.
If confirmed the transaction would be a violation of Japan's strict export controls and its long-standing policy against possessing or trading nuclear weapons. Japan was the target of the only atomic bomb attacks.
Another diplomat with expert knowledge of Libya's nuclear program said the sheer size of the shipment should have rung alarm bells with Japanese customs authorities.
"It was huge," he said, describing the plant components as filling numerous containers and weighing "tons and tons."
He said the bulkiness of the plant components meant they were probably delivered by ship and not flown in.
Japan was named earlier by investigators active in the probe into the black market network, which also extends from Pakistan to Dubai, Malaysia, South Korea (news - web sites), Switzerland, Germany, Britain, the Netherlands and beyond -- with potential ties to Syria, Turkey and Spain.
Earlier this week, the IAEA's board of governors passed a resolution praising Tripoli for its admission, but criticizing it for its earlier nuclear weapons plans. Libya also signed an agreement with the agency opening its nuclear program to far-reaching agency inspections.
Libya did not manage to make enriched uranium or achieve other substantial progress toward making nuclear weapons, the agency said.
Investigators expect to complete the probe by June, eight months after U.S. officials confronted the Pakistani government with suspicions about Khan, setting into motion events that led the father of Islamabad's nuclear program to confess last month.
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Is Pakistan's nuclear programme dying?
Analysis
By Paul Anderson
BBC correspondent in Islamabad
In all the heat generated by Pakistan's leading nuclear scientist, AQ Khan, confessing to nuclear proliferation, relatively little attention has been paid to the future of the country's nuclear weapons programme.
AQ Khan dramatically confessed to leaking nuclear secrets in February.
In the 1970s Prime Minister Zulfiqar Ali Bhutto famously declared that Pakistanis would go to any sacrifice to match India's nuclear weapons programme, even if it meant the people being reduced to eating grass.
Now they have a nuclear programme, they are discovering that weapons technology is a dynamic business which requires constant maintenance and upgrading.
That maintenance has been promised by President Pervez Musharraf.
But nuclear specialist and journalist Shahid ur Rehman believes the president will run into difficulties, the seeds of which were sown many years ago.
"Pakistan's programme was based on smuggled, imported technology," he says. "AQ Khan and his friends went shopping all over the world with the connivance of the Pakistani army.
"By contrast, India's programme was not as sophisticated, but it was indigenous. If there are curbs on India they will not suffer."
Shahid ur Rehman argues that it will be impossible for Pakistan to upgrade its nuclear programme legally.
"If Pakistan needs a nuclear component, they will have to approach the international market. They will not sell it, so Pakistan will have to buy it on the black market."
That means, he argues, that: "Pakistan's nuclear programme is now almost half dead. They won't be able to modernise facilities which are becoming obsolete. It is a de facto roll back."
And that is precisely what President Musharraf has promised to avoid.
"We will continue to develop our capability in line with our deterrent needs. I am the last man who will roll back," General Musharraf promised recently.
Inspections debate
So far, there is no obvious pressure on Pakistan to embark on nuclear reduction or a roll back.
But that could come, if or when new revelations about its proliferation history come to light.
The country could also come under pressure to open its facilities for inspection.
Many Pakistanis regard Dr Khan as a hero
"The outside world would be quite justified in asking the Pakistani government for proper assurances," says AH Nayyar, a physicist and nuclear expert from Qaid-e-Azam University in Islamabad.
"They could demand to inspect the log books of all sensitive organisations in Pakistan to make sure every single kilo of highly enriched uranium is taken account of. That could be very intrusive," he says.
But as long as President Musharraf is in power, that is extremely unlikely.
"No to an internal independent inquiry and no to United Nations inspections teams," he said after AQ Khan's dramatic confession last month.
He might have added 'no' to joining the Non Proliferation Treaty (NPT) which has been mooted as a possible consequence of the proliferation scandal.
But it has been ruled out by one government official after another.
Pakistan would have to be legally recognised as a nuclear weapons state first, which is unlikely, and India would have to join the NPT at the same time, which is also unlikely.
Double standards?
NPT touches another nerve. There's a widespread belief in Pakistan that it is being singled out for scrutiny while India's weapons programme is overlooked.
Take the recent hi-tech agreement between India and the United States, on cooperation in nuclear power and space technologies.
Samina Ahmed, from the International Crisis Group, believes it is a green light for proliferation.
Khan's Kahuta plant is Pakistan's main nuclear weapons laboratory
"Transfers of dual-use technology, nuclear technology and space technology is violating a basic principle of the Non Proliferation Treaty," she says.
"It is dangerous and counterproductive.
"Dangerous because with some of the gaps in India's nuclear weapons programme being filled in with American support, that will encourage India to go ahead with its ambitious nuclear programme.
"And counter-productive because it will lead to other states playing catch-up."
While these argument rage, Pakistan is quietly hoping the whole issue will go away.
Or if it does not, that the focus of attention is turned on what President Musharraf says is the real menace - the European companies which he says form the backbone of the nuclear black market.
So far though, there is little sign of that happening.

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How to thwart a nuclear black market
BY SALLY ANN BAYNARD
Sally Ann Baynard is a professorial lecturer in the School of Foreign Service at Georgetown University.
March 10, 2004
February brought news that we should all pay attention to, especially those of us who live near the two most important nuclear-target cities in America: New York and Washington.
The good news is that Libya spent 20 years and untold millions of dollars trying to develop a nuclear weapons program, but failed. Now Moammar Gadhafi is cooperating with the International Atomic Energy Agency to dismantle the program and reveal the sources of supply. The bad news is the existence of an international black-market network for supplying parts, machines, technology and even designs for manufacturing nuclear weapons.
Stretching from its roots in the company established by Pakistani nuclear program guru Abdul Qadeer Khan, the covert system has operated through companies from Europe to Malaysia to South Africa, with a hub of operations in Dubai and links to China. Khan has admitted selling nuclear secrets to Iran, Libya and North Korea. The network leading from Khan is so extensive an operation for one-stop nuclear shopping that IAEA Director-General Mohamed ElBaradei called it an "international Wal-Mart."
What does this mean to us? Are we more safe or less safe than we thought?
With the Cold War over and China's nuclear program decades behind the United States', the most damaging nuclear threat, all-out nuclear war, has become extremely improbable - although we should not forget the thousands of nuclear weapons still sitting atop intercontinental ballistic missiles in Russia and continued ICBM development in China.
The second way that nuclear bombs can threaten us is indirect. A regional rogue state, like North Korea or Iran, might decide to use a nuclear weapon against an enemy in its region, for example Japan or Israel. Or one of the regular confrontations between such regional enemies as India and Pakistan could erupt into a nuclear exchange. The damage would severely affect the global economy and cause incalculable harm to the environment, not to mention the resulting worldwide instability, but its effect on the United States is no greater than on the rest of the world.
The third way we are threatened by nuclear weapons is probably the one that gives most of us the greatest anxiety these days: a nuclear weapon in the hands of an anti-American terrorist group. Is it plausible that such a terrorist group possesses such a weapon? Does the existence of the nuclear black market make this terrifying scenario more likely?
It is unlikely that a group possesses such a weapon now or we probably would already have experienced this nightmare. It is remotely plausible that such a group could obtain one or more nuclear bombs, but the likelihood diminishes daily if the United States and international officials do their jobs right.
So the question is, Are they?
The IAEA seems to be on the ball, but the Bush administration could do much better. The administration and Congress must more aggressively fund and implement the Nunn-Lugar Cooperative Threat Reduction Program, a 10-year program that has done much in the areas of the former Soviet Union to guard and destroy nuclear materials, weapons and expertise that might otherwise become available on the black market.
President George W. Bush has said he supports this, but his 2005 budget request includes a cut and the administration has not acted quickly in the past to remove bureaucratic barriers to this critical program.
Similarly, after the revelations in February of Pakistan's nuclear aid to Libya, Iran and North Korea and the links with China, the president proposed new measures to restrict the trade in nuclear material. But Bush's proposals and his overall strategy are, in the words of one arms control expert, "too limited and contradictory to address current and future nuclear weapons dangers adequately."
We are no more at risk than we were before this nuclear black market was exposed, and perhaps less so. We can take comfort in the failure of Libya to achieve its ends after two decades, even with plenty of oil money to spend. A full-fledged nuclear program turns out not to be so easy to set up.
If the IAEA continues its investigative work, if the Bush administration steps up to the plate in funding Nunn-Lugar and other programs to control the spread of nuclear weapons, if the president has the courage to deal seriously with Pakistan over its behavior - if all this happens - then maybe we will be significantly less threatened in the future by nuclear weapons.
Copyright ? 2004, Newsday, Inc.



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>> CRONYISM WATCH...

AP: Firms Awarded Iraq Pacts Tied to D.C.
Fri Mar 12, 2:55 AM ET
By MATT KELLEY, Associated Press Writer
WASHINGTON - The former employer of the Pentagon (news - web sites)'s top contracting official in Iraq (news - web sites) shares part of $130 million in reconstruction business awarded this week.
Many of the companies awarded eight management contracts Wednesday have other strong Washington ties: Several are generous Republican donors and another is partly owned by a Democratic California senator's husband.
The Parsons Brinkerhoff construction company was one of two companies picked to share a $43.4 million contract to help manage reconstruction of Iraq's electricity grid. Retired Navy Rear Adm. David Nash, director of the program management office for the Pentagon in Baghdad, is a former president of a Parsons Brinkerhoff subsidiary.
The company also has Republican connections. It gave $90,000 to various Republican Party committees in the past five years, and $8,500 to similar Democratic groups.
"It's hard to find a major company in America anymore that doesn't have political connections," said Danielle Brian, head of the independent watchdog group Project on Government Oversight. "Federal contracting has become political. Just about every company that can compete does have political connections."
Defense Department officials say neither Nash's connections nor politics had anything to do with the contract award, and all eight awards were chosen through open competition. Army Lt. Col. Joe Yoswa, a Pentagon spokesman, said Nash does not have any authority to award contracts. Parsons Brinkerhoff spokesman Bruce Ross declined comment.
The new contracts were awarded Wednesday and Thursday in the shadow of previous controversy over Iraq reconstruction work given to Vice President Dick Cheney (news - web sites)'s former firm, Halliburton Co. Some of that work is under criminal investigation.
Halliburton refunded some money for alleged overcharges, and is running a series of television ads contending the criticism of its work is politically motivated.
The Defense Department announced two new reconstruction contracts worth $1.1 billion Thursday night.
A $500 million contract to design and build electricity facilities went to a partnership of the giant construction companies Fluor Corp. and AMEC. A $600 million contract to build drinking water systems went to a partnership of construction companies Washington Group International and Black & Veatch.
Fluor gave $48,000 to Republican committees in the past five years and $4,500 to Democrats. A Fluor vice president, Kenneth Oscar, joined the company in 2002 after spending 20 years as a contracting official at the Pentagon, the latest as acting Army assistant secretary for procurement.
The Pentagon says it chooses contractors based on which have the best management, are most likely to succeed and offer the best price. But an Army general acknowledged at a House hearing Thursday the military has made mistakes.
"We aren't perfect. It is a war zone, and we are correcting mistakes as we find them," said Gen. Paul Kern, head of the Army Materiel Command.
One such mistake was a $327 million contract to outfit the new Iraqi military. The U.S. Army canceled that contract after two losing bidders complained the decision-making process was confusing and contradictory.
The contract was awarded to Nour USA, whose president is A. Houda Farouki. He is a friend of Ahmed Chalabi, a member of the Iraqi Governing Council who was close to several top Pentagon officials before the U.S. invasion.
Nour and the Pentagon said Farouki's ties to Chalabi had nothing to do with the award. The Army hopes to have a new bidding process for that contract ready within three months, said Maj. Gary Tallman, a spokesman.
Republicans aren't the only ones with ties to Iraq contractors. URS Group Inc., partly owned by Richard C. Blum, the husband of Democratic Sen. Dianne Feinstein of California, was part of a two-company team that won $27.7 million in Iraq business Wednesday.
Blum is vice chairman of URS Group, which in partnership with New Jersey's Louis Berger Group will help manage reconstruction of Iraq's transportation, communications, security, education and health infrastructure.
Feinstein spokesman Howard Gantman said Blum's connections had nothing to do with the Iraq contracts. URS Group spokeswoman Judith Lillard did not return a telephone message.
Another contract, worth $28.5 million, went to a partnership of engineering firm CH2M Hill of suburban Denver and California construction firm Parsons Corp., which is not related to Parsons Brinkerhoff.
CH2M Hill gave $69,000 to Republican committees over the past five years and $34,000 to Democratic committees. The head of the company, Ralph R. Peterson gave $6,000 each to Republican and Democratic candidates during that time.
Karen Steeper, a CH2M Hill spokeswoman, said federal rules forbid the consideration of politics in awarding contracts.


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>> CANADA...

Meat from Farm May Have Had Human Remains
Thu Mar 11, 8:07 AM ET
By Allan Dowd
VANCOUVER, British Columbia (Reuters) - Pork products processed and distributed from the farm of accused Canadian serial killer Robert Pickton may have contained human remains, police and health officials said on Wednesday.
Pickton raised and slaughtered pigs at the Port Coquitlam farm as a part-time occupation until his arrest at the property in February 2002, and police believe he gave or sold processed meat products to friends and acquaintances.
Pickton, 53, is awaiting trial in the killings of at least 22 of more than 60 missing Vancouver prostitutes who disappeared over the past decade and are feared to have been murdered at the dilapidated farm 20 miles east of Vancouver.
"Given the state of the farm, and what we know about the investigation, we cannot rule out the possibility that cross-contamination may have occurred," B.C. provincial Health Officer Perry Kendall told reporters in Victoria.
"Cross-contamination could mean that human remains did get into or contaminate some of the pork meat," Kendall said.
Officials stressed that the farm's pig slaughtering operation was not officially licensed and he did not sell processed meat to retail outlets.
"There is no evidence we are dealing with anything other than a very specific localized issue, with a specific number of local people," said Cpl. Catherine Galliford of the Royal Canadian Mounted Police.
Kendall said he was not contacted by the police until last month when they asked a "hypothetical question' about the potential health risk. He issued the alert when they later said it probably happened.
Details of evidence from the farm were presented in court last year at Pickton's preliminary hearing, but a court order prohibits reporters who covered the hearing from publishing details of what they heard until it is used in his trial, which will likely not start until next year.
Police defended the timing of their contacting health officials, saying it was needed to protect the investigation, although they also acknowledged more people may have received meat from Pickton than they had originally thought.
"We have carefully considered all the issues," said Vancouver Police Detective Shelia Sullivan.
Pickton is officially charged with 15 murders but prosecutors have said seven more counts are waiting to be filed. Tests have identified the DNA of nine more women, but not yet resulted in charges.
The victims were among more than 60 drug-addicted prostitutes who disappeared from Vancouver's poor Downtown Eastside neighborhood. Families of the missing women expressed horror at the news, with one telling a Vancouver radio station bluntly. "I'm not eating dinner tonight."
Pickton, in custody since his arrest, is the only person charged in the case. He has not entered a plea to the criminal charges but denied wrongdoing in a related civil lawsuit.

Posted by maximpost at 3:35 PM EST
Permalink

>> KOFI BURNS HIMSELF...


Kojo & Kofi
Unbelievable U.N. stories.

By Claudia Rosett

In the growing scandal over the United Nations Oil-for-Food program, which from 1996-2003 supervised relief to Saddam Hussein's Iraq, U.N. Secretary General Kofi Annan and his staff have excused themselves from any responsibility for the massive corruption involving billions in bribes and kickbacks that went on via more than $100 billion in U.N.-approved contracts for Saddam to sell oil and buy humanitarian supplies. U.N. officials have denied that this tidal wave of graft in any way seeped into their own shop, or that they even had time to notice it was out there. They were too busy making the world a better place.

That's fascinating, not least given the ties of Annan's own son, Kojo Annan, to the Switzerland-based firm, Cotecna, which from 1999 onward worked on contract for the U.N. monitoring the shipments of Oil-for-food supplies into Iraq. These were the same supplies sent in under terms of those tens of billions of dollars worth of U.N.-approved contracts in which the U.N. says it failed to notice Saddam Hussein's widespread arrangements to overpay contractors who then shipped overpriced goods to the impoverished people of Iraq and kicked back part of their profits to Saddam's regime.

Cotecna was hired by the U.N. on December 31, 1998. Shortly afterward, press reports surfaced that Kojo was a partner in a private consulting firm doing work for Cotecna, and that just 13 months previously he had occupied a senior slot on Cotecna's own staff. Asked about this in 1999 by the London Telegraph, a U.N. spokesman, John Mills, replied that the U.N. had not been aware of the connection, and that "The tender by Cotecna was the lowest by a significant margin."

It seems there's a lot the U.N. managed not to be aware of. But the information that Cotecna -- while employing Kofi's son in any capacity -- put in the lowest bid by far for the job of authenticating Saddam's Oil-for-Food imports, is not necessarily reassuring. Cotecna, which got paid roughly $6 million for its services during that first year (the U.N. will not release figures on Cotecna's fees over the following years) was bidding on work that empowered its staff to inspect tens of billions worth of supplies inbound to a regime much interested in smuggling, and evidently accustomed to dealing in bribes and kickbacks as a routine part of business. The issue was never solely whether the monitors were cheap, but whether they were trustworthy.

The whole setup raises disturbing questions. But this is a subject on which neither the U.N. nor Cotecna has been willing to offer illumination. Asked for details, both have stonewalled. The U.N. spokesman Mills, who fielded the question in 1999, is now deceased. A query to the U.N. Oil-for-Food elicits from a spokesman only the information that the five-year-old response by the late Mills "stands, as provided by the U.N." A recent query to Cotecna, asking for at least some detail on ties to Kojo Annan, elicits nothing beyond the reply that: "There is nothing else to add."

It is possible of course, that Kojo Annan had nothing to do with the Iraq program per se, as he told the Telegraph back in 1999: "I would never play any role in anything that involves the United Nations for obvious reasons." Though at the same time, in a comment that suggested at least nodding acquaintance with the Oil-for-Food program, Kojo added: "The decision is made by the contracts committee, not by Kofi Annan."

Then why the reluctance from the U.N., or Cotecna, for that matter, to provide any further details whatsoever? Beyond that, it is disingenuous to suggest Annan had no responsibility for the contracts. Oil-for-Food was run out of the U.N. Secretariat, reporting directly to Annan, who regularly signed off on the six-month phases of the program. Without his approval, the contracts would not have gone forward.

Even if we assume that everyone on the U.N.'s Oil-for-Food staff, as well as Kofi Annan himself, was indeed ignorant of Kojo Annan's involvement with Cotecna, it is hard to buy the argument that Kofi, while signing off regularly on the program's workings, was simply oblivious to the details. Not only was Kofi Annan the boss, but he was directly involved from the beginning. Kofi Annan's official U.N. biography notes that shortly before his promotion to Secretary-General "he led the first United Nations team negotiating with Iraq on the sale of oil to fund purchases of humanitarian aid."

It was Annan, who in October 1997 brought in as Oil-for-Food's executive director Benon Sevan, reporting directly to the Secretary-General, to consolidate Oil-for-Food's operations into the Office of Iraq Program. And it was shortly after Sevan took charge that Oil-for-Food, set up by Kofi Annan's predecessor, Boutros Boutros-Ghali, with at least some transparency on individual deals, began treating as confidential such vital information as the names of specific contractors, quantities of goods, and prices paid.

U.N. staff, such as Under-Secretary General Shashi Tharoor in a letter last month to the Wall Street Journal, have argued that the U.N. was not responsible for Saddam's misdeeds, and that U.N. staff were not concerned with such kickback-relevant matters as business terms of Saddam's contracts. The disturbing implication is that the U.N. -- while collecting a commission of more than $1 billion on Saddam's oil sales to cover its own overhead in administering Oil-for-Food -- was indifferent to Saddam's short-changing the Iraqi people, whose relief was supposed to be the entire point of the program.

Beyond that, the U.N., during the final months of Oil-for-Food, gave every indication of knowing just where the problems lay. Last May, shortly after the fall of Saddam's regime, the U.N. Security Council voted to end the Oil-for-Food program and gave the U.N. Secretariat six months to tie-up loose ends before handing over any outstanding import contracts to the U.S. Coalition Provisional Authority. With Saddam's regime gone as a contracting party, the U.N. began a frenzied process of "renegotiating" billions in contracts, basically winnowing out the graft component that Oil-for-Food had previously approved.

By the end of this sudden housecleaning, the U.N. had scrapped more than 25 percent of the contracts for which, under Saddam, it had already agreed to release funding from the U.N.-controlled Oil-for-Food bank accounts. Uncharacteristically, the U.N. on its website has posted explanatory notes next to some of the dropped contracts. These do not suggest a U.N. that was living in ignorance of Saddam's 10-percent-overpricing-and-kickback scheme.

For instance, in the U.N.'s own footnotes, there is reference to the welding-machine contractor from Lebanon, "unwilling to accept the 10% deduction"; likewise the Belgian and Jordanian suppliers of medicine, both refusing a "10% reduction." In other cases there is a vaguer note, such as the Russian backhoe supplier, who "refused to accept extra fee deduction." Or the supplier of "fork lift and spares" from Belarus who "stated that the supply of remaining parts cannot be cost effective under the current circumstances." Asked to further explain these notations, an Oil-for-Food spokesman offers no comment except that all available information is already posted on the U.N. website.

Altogether, according to U.N. records, 728 previously approved and funded deals were "removed from the list of amendable contracts," a few because the supplies had already been delivered, but many because the contractors appear to have run for the hills. For instance, there's the Jordanian supplier of school furniture, whose contract was dropped during the U.N.'s post-Saddam frenzy of "prioritization" because the "Company does not exist and the person in charge moved to Egypt." Or the Russian supplier of "vehicle spare parts," who "could not be contacted despite all efforts." Or the Algerian seller of "adult milk" who "has no interest in renegotiation"; the Egyptian seller of "generator" for educational purposes, who "is not enthusiastic about proceeding with the amendment"; the Syrian seller of "laboratory equipment" who is "not possible to contact."

Another 762 contracts set aside indefinitely by the U.N., post-Saddam because of their "questionable utility" were deals for goods that sound handy and humanitarian enough on the generic U.N. face of it. These include medicine from China; sugar and ambulances from Egypt; laboratory materials and medical equipment from France; educational materials from Pakistan; wheat, medical equipment, and ambulances from Russia; and yet more wheat, from Saudi Arabia. One has to wonder if the revised assessment of utility lay in the nature of the goods described, or in the actual terms of the contracts previously blessed by the U.N.

It's commendable that the U.N., facing imminent handover of the program, tried to clean up the remaining contracts. It is plausible, perhaps, that no one at the U.N. knew of the links between Kofi Annan's son, Kojo, and the firm monitoring Iraq's U.N.-approved imports, Cotecna, and that these ties had no bearing on a massively corrupt program. It is possible that only after Saddam fell did anyone among the 1,000 or so U.N. international staff administering Oil-for-Food, or Sevan, or Kofi Annan, notice that they'd been approving Saddam's deals with suppliers that were, in various combinations, paying kickbacks, hard to contact, or even, as in the case of the Jordanian school-furniture contractor, nonexistent.

But what has to be clear by now is that the U.N. itself was either corrupt, or so stunningly incompetent as to require total overhaul. There are by now enough questions, there has been enough secrecy, stonewalling, and rising evidence of graft all around the U.N. program in Iraq, so that it is surely worth an independent investigation into the U.N. itself -- and Annan's role in supervising this program. If Kofi Annan will not exercise his authority to set a truly independent inquiry in motion, it is way past time for the U.S., whose taxpayers supply about a quarter of the U.N. budget, to call the U.N. itself to account for Oil-for-Food -- in dollar terms the biggest relief operation it has ever run, and by many signs, one of the dirtiest.

-- Claudia Rosett is a senior fellow with the Foundation for the Defense of Democracies, and an adjunct fellow with the Hudson Institute.
http://www.nationalreview.com/comment/rosett200403101819.asp

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>> WHERE IS CONGRESS WHEN YOU NEED IT?

AFTER THE WAR

The Oil-for-Food Scandal
The program was corrupt. The U.N. owes the Iraqis--and Congress--an explanation.

BY THERESE RAPHAEL
Thursday, March 11, 2004 12:01 a.m. EST

"If there is evidence, we would investigate it very seriously," Kofi Annan insisted last month when presented with allegations that U.N. officials knew about and may have benefited from Saddam Hussein's corruption of the U.N.'s Oil-for-Food Program. Fortunately, Saddam appears to have been a stickler for record-keeping.

A letter has come to The Wall Street Journal supporting allegations that among those favored by Saddam with gifts of oil was Benon Sevan, director of the U.N.'s Oil-for-Food Program. As detailed on this page on Feb. 9, Mr. Sevan's name appears on a list of individuals, companies and organizations that allegedly received oil allocations or vouchers from Saddam that could then be sold via middlemen for a significant markup. The list, compiled in Arabic from documents uncovered in Iraq's oil ministry, included many of Saddam's nearest and dearest from some 50 countries, including the PLO, pro-Saddam British MP George Galloway, and French politician Charles Pasqua. (Messrs. Galloway and Pasqua have denied receiving anything from Saddam.) According to the list, first published by the Iraqi daily Al Mada in January, Mr. Sevan was another beneficiary, via a company in Panama known as Africa Middle East Petroleum, Co. Ltd. (AMEP), about which we have learned quite a bit.

Mr. Sevan, through a U.N. spokesperson, has also denied the allegation. But the letter, which two separate sources familiar with its origins say was recovered from Iraqi Oil Ministry files, raises new questions about Mr. Sevan's relationship with Iraqi authorities.

The letter is dated Aug. 10, 1998, and addressed to Iraq's oil minister. It states: "Mr. Muwafaq Ayoub of the Iraqi mission in New York informed us by telephone that the above-mentioned company has been recommended by his excellency Mr. Sevan, director of the Iraqi program at the U.N., during his recent trip to Baghdad." The matter is then recommended "for your consideration and proportioning" and the letter is signed Saddam Zain Hassan, executive manager of the State Oil Marketing Organization (SOMO), the Iraqi state-owned company responsible for negotiating oil sales with foreign buyers. A handwritten note below the signature confirms the request was granted "by his excellency the Vice President of the Republic [presumably Taha Yassin Ramadan, now in U.S. custody] in a meeting of the Command Council on the morning of Aug. 15, 1998." Scrawled below that to one side is another note stating that 1.8 million barrels were allocated to the company two days later, on Aug. 17.
A second document shown to the Journal is a chart in Arabic with the heading "Quantity of Oil Allocated and Given to Mr. Benon Sevan." The Oil-for-Food program was divided into 13 phases in all, representing roughly six-month periods from December 1996 through June 2003. Under phase four (during which the letter was written), the chart shows 1.8 million barrels as having been allocated to Mr. Sevan and 1,826 million barrels "executed." In some phases the chart indicates that an oil allocation was approved but no contract was executed for some reason, so that the total allocation awarded to Mr. Sevan in phases four through 13 is 14.2 million barrels, of which 7.291 million were actually disbursed, according to the document.

Mr. Sevan could not be reached for comment on the letter, but did issue a denial in response to our Feb. 9 article. "There is absolutely no substance to the allegations . . . that I had received oil or oil monies from the former Iraqi regime," he said through a spokesman. "Those making the allegations should come forward and provide the necessary documentary evidence." The denial notwithstanding, the documents raise enough questions to warrant an investigation by the U.N., as well as by outside investigators, including the U.S. Congress. (A U.N. spokesman said yesterday that Mr. Sevan is on extended vacation until late April, after which he retires at the month's end.)

Africa Middle East Petroleum Co. Ltd., which is cited in the letter, is registered in Panama and was also approved by the U.N. to buy Iraqi oil under Oil-for-Food. While Panama registration documents list only Panamanian nominees as directors, the Journal has established that AMEP is owned and managed by Fakhry Abdelnour, a Geneva-based oil trader with superb connections in Egypt. The company was registered in the U.K. in the '80s and dissolved in 1992. Mr. Abdelnour's name does not appear on British registration documents, but his brother's and mother's, Munir Abdelnour and Ehtedal Amin Ghali, do.
In a phone conversation, Munir Abdelnour, leader of the Wafd opposition party in Egypt's parliament and a prominent businessman, said he has nothing to do with the company, despite his name appearing as a director of the now-defunct U.K.-registered company. "Africa Middle East Petroleum is a company owned and managed by my brother. He might have used my name, but I have absolutely no clue."

Fakhry Abelnour (whose wife is Panamanian and related to Panama's president) has close ties to Egypt's oil minister. He comes from a prominent Coptic family that is related to that of Boutros Boutros-Ghali, Mr. Annan's immediate predecessor, and Mr. Sevan's former boss when the latter was U.N. envoy in Afghanistan.

Mr. Abdelnour played a key role in the early '90s in helping South Africa circumvent U.N. sanctions to buy Egyptian crude, through AMEP and a subsidiary, now dissolved, called Interstate Petroleum Company. In 1999, South Africa conducted an investigation into allegations of impropriety surrounding margins paid by South Africa's state-run purchaser, the Strategic Fuel Fund Association (whose job was to find suppliers willing to sell crude oil to South Africa) to Mr. Abdelnour's company for his services in sanctions-busting. The 255-page report submitted to parliament in December 1999 by an independent official appointed to investigate the complaint details Mr. Abdelnour's high-level connections in Egypt and the meetings arranged by him between SFF officials and Egyptian oil ministers and officials from the Egyptian General Petroleum Corporation (EGPC), responsible for negotiating sales of Egyptian oil. "Mr Fakhry Abdelnour and his companies' involvement directly or indirectly in the South African oil procurement scenario is a fact that need not be debated. . . . I have already accepted earlier on that AMEP, Interstate and Mr. Abdelnour refer to one and the same person," states the report.

Mr. Abdelnour confirmed he owns the Panama-registered AMEP. "We have been very active in the Middle East for 25 years. We were almost the extended arm of the Egyptian General Petroleum Corporation; we were controlling most of the exports in Egypt," he says. He confirmed that AMEP purchased oil from Iraq through Oil-for-Food, beginning around 1998, and said he made semi-annual trips to Baghdad to meet SOMO officials to keep contracts coming. Asked about his relations with Mr. Sevan, he says he met him only once, at an OPEC conference in Vienna, where a relative of Mr. Abdelnour who was also a friend of Mr. Sevan introduced them. They had dinner together at the InterContinental. "It was interesting to know Benon Sevan as he ran the oil-for-food program," says Mr. Abdelnour. But he insists there was no further contact and says he has no idea why a letter showing Mr. Sevan recommended his company to SOMO would be in the files.

Mr. Abdelnour confirms the many reports now in the public domain that SOMO demanded that surcharges on Iraqi oil be paid into Iraqi accounts. "I paid once," he acknowledges. "I was given an account in Jordan and the name of the lady who was in charge of this account." He says the surcharge amounted to 25 cents a barrel. Was it possible that all this happened unbeknownst to the U.N.? "Impossible," he says. "Everybody knew it. The U.N. knew about it. They [SOMO] contacted you over the phone. . . .The call was over a satellite phone, which was tapped, and the head of SOMO talked to me very openly, not through a disguised language."

AMEP still exists on registry documents in Monaco, but Mr. Abdelnour confirmed that the office there on Boulevard Princesse Charlotte closed two years ago. Intriguingly, the same building in Monaco houses another oil company, Toro Energy SAM, whose owner and a key business partner both figure prominently on the Al Mada list: oil industry specialist Cabecadas Rui de Sousa and Frenchman Patrick Maugein. (Mr. Abdelnour says he does not know either man).
Mr. Maugein, a billionaire with close ties to Jacques Chirac, is a longtime associate of the trader and former fugitive Marc Rich, who fled to Europe in 1983 to avoid answering charges of racketeering, illegal trading and dodging a tax-bill of $48 million. (Mr. Rich was pardoned by Bill Clinton in his final hours in the White House). Mr. Maugein was also a close contact of Tariq Aziz, with whom he met regularly. He is the non-executive chairman of Soco International PLC, a publicly listed London-based petroleum exploration/production company, which goes into markets the majors tend to skip--Mongolia, Vietnam, North Korea, Libya and Yemen.

Messrs. Maugein and Rui de Sousa acquired their interest in Soco through an entity called Torobex, whose shares were held by Tobex Holdings Ltd. According to Al Mada, Mr. Maugein allegedly received 25 million barrels of Iraqi crude allocations. Mr. de Sousa is also on the allocation list, down for 11 million barrels.

In a statement provided to the Journal, Mr. Maugein says "there is no truth whatever" to any allegation of impropriety and that his dealings in Iraq "were conducted in a perfectly legal manner and in strict accordance" with U.N. rules. His dealings in Iraq, he suggests, were through his 10% stake in Italiana Energia e Servizi, a Mantua-based oil refinery, which is majority-owned by Mario Contini and purchased crude from Iraq under Oil-for-Food.

On the Al Mada list, Mr. Maugein's name appears next to the name of Dutch-based oil trading company Trafigura (Beheer BV), which has the bulk of its operations in London. In his statement, Mr. Maugein says that "Trafigura's activities in Iraq are completely independent of that of Mr. Maugein and there is no connection at all between Mr. Maugein and the incident in 2001 involving Trafigura." The incident is the Essex oil smuggling scandal, on which the Journal carried an investigative story in May 2002. In a smuggling practice known as top-loading, 1.8 million barrels approved for sale under a U.N. contract was topped off with an additional 272,000 barrels in the summer of 2001, according to the captain of the Essex oil-tanker, who blew the whistle on the smuggling by advising U.S. and U.N. authorities. It was the second time in less than four months that the Essex had been chartered to carry top-loaded crude.

Trafigura purchased the oil from oil equipment supplier Ibex Energy France, which in turn bought it from SOMO in Iraq. Ibex said the scheme had been cooked up by Trafigura; Trafigura claimed Ibex fooled it into believing that it had U.N. permission to purchase all of the oil. A French government investigation into Ibex's involvement in the Essex incident appears to have been dropped in late 2002. Ibex was struck from the U.N.'s list of approved companies to deal in Iraq after the Essex incident and the Security Council's 661 Sanctions Committee, responsible for overseeing oil-for-food, asked eight governments (including the U.S., France, the U.K. and the Netherlands) to investigate, but had not heard back by the time oil-for-food was shut down last November.
Ibex's rise from modest beginnings as a regional company with non-oil commercial dealings to a major petroleum broker is something of a mystery. Its office is at 77 boulevard Champs Elysee in Paris. The building's concierge told us that Ibex and Toro occupy the same penthouse office. A receptionist readily fielded inquiries about both companies, though referred questions on Toro to Mr. de Sousa in Monaco.

"I don't share an office with Ibex. I have nothing to do with them and neither does Mr. Maugein," said Mr. de Sousa in a phone interview. "We know Ibex as we know Shell [Oil]. So they gave you my number. Don't you have the number of the Daily Mail?"

Jos? Antonio Jim?nez, a former friend and business partner who has known Mr. Maugein since 1972, sees it differently. "Ibex is a microscopic company used as a screen by Mr. Maugein. He uses Ibex and Toro Energy as screen companies to manage his oil traffic," says Mr. Jimenez. Mr. Jimenez was a minority partner in Compagnie Francaise Internationale de Distribution, which was controlled by Mr. Maugein, but the two had a falling out in the mid '90s over money. "Maugein specialized in outlaw countries--Libya, Algeria, Iraq--using his political contacts," says Mr. Jimenez. "Chirac used to call Patrick Maugein 'my cousin' and recommended him to Saddam Hussein . . . Maugein used to go every year to Baghdad to see Tariq Aziz, but after a while he would just send his brother Philippe [now a consultant for Trafigura] and de Sousa." Mr. Jimenez believes that Ibex's contracts in Iraq came via Mr. Maugein.

Mr. de Sousa says he and Mr. Maugein know Jean-Paul Cayre, the former Rich trader who is Ibex's managing director, but that they have nothing to do with his business in Iraq or elsewhere. Asked if he has any relationship with AMEP, which once shared a building in Monaco, Mr. de Sousa said "I probably did some business with them buying Egyptian crude at the end of the '80s and early '90s. I don't know [Fakhry Abdelnour], but I talked with him on the phone."

Mr. de Sousa believes the Al Mada list "has something to do with the competition between different groups sharing power in Iraq. People are now adjusting accounts between former people linked to the oil business, people who went there. I went [to Iraq] to discuss potential investments. Who didn't go?" The complaints about Saddam's corruption of Oil-for-Food "is a big hypocrisy," he says. If corruption occurred, "in my opinion it was because whoever was sitting at the U.N. Security Council was not doing their job . . . In my view, the whole thing was accepted, admitted by major countries."

As further details of Oil-for-Food unfold, it becomes clearer than ever that the inspectors employed by the U.N. were, at best, lax in monitoring Saddam's get-rich-quick scheme. This is another area begging for investigation.
Inspections under Oil-for-Food, as former U.N. program-officer Michael Soussan indicated in The Wall Street Journal on Monday, amounted to little more than rubber-stamping whatever contract Saddam's regime initialed. On the export side, top-loading of the Essex and other vessels happened on the watch of inspectors from Dutch-based company Saybolt International BV, though no one has alleged publicly that Saybolt's inspectors knew what was going on. Saybolt's name appears on the Al Mada list too. Saybolt has denied it received anything from Saddam.

The import side too was rife with corruption, including kickbacks demanded by Iraq on imported goods, and shameful lack of quality controls on much of the food and medicine entering Iraq. The job of inspecting those goods fell mostly to a Geneva-based company called Cotecna Inspection, SA. In February 1999, the U.N. terminated a five-year contract with Lloyd's Register, which had set up an innovative system in Jordan for inspecting shipments of goods going into Iraq to ensure against sanctions-busting. The contract was put to tender and Cotecna won with the lowest bid. It has had the contract ever since and it was renewed by the Coalition Provisional Authority in November.

And yet the choice of Cotecna should have raised a few eyebrows. The firm's founder and president is the octogenarian Elie Georges Massey, a Coptic emigr? who transformed his company from salt-extraction in Iran in the early '70s into one of a handful of players in the rough-and-tumble business of pre-shipment inspection (or PSI). PSI work mostly involves winning contracts in the developing world, where customs authorities are too corrupt or inept to be trusted, to monitor the flow of exports and imports.

Cotecna, known in the industry for the Massey family's superb contacts in the countries in which it does business, has won PSI deals in Iran, Nigeria, Colombia, Ghana, Kenya, Peru and other places. One prominent former employee of Cotecna is Kojo Annan, Kofi Annan's son by his first marriage. The young Mr. Annan was employed by Cotecna in the mid-1990s. He reportedly continued a consultancy relationship with Cotecna through his Nigerian-based company.

Philip Henebry, Cotecna's CFO, confirmed that Kojo Annan had been employed there, but would not confirm any dates. Asked how Cotecna was able to underbid competitors on the Iraq contract by as much as half, he replied that "We felt that the margins with competitors were very, very high. Originally the contract was for short periods and we worked on the assumption it would be renewed."

At the time of the U.N. inspection tender, Cotecna's reputation wasn't exactly stellar. Its CEO, Robert Massey, was indicted by a Swiss magistrate in a bribery and money laundering scandal involving Pakistan's former prime minister, Benazir Bhutto, that rocked the PSI industry. Also indicted were a former employee of Swiss giant and the global PSI leader, Societ? G?n?rale de Surveillance (SGS)--which at the time owned a majority stake in Cotecna--and a Geneva-based Bhutto lawyer. Cotecna claimed it was a victim of Pakistani politics. SGS, which was suffering its own management and financial troubles, subsequently sold Cotecna back to the Massey family and itself came under new management which diversified the company away from its reliance on PSI contracts. Cotecna, meanwhile, dusted itself off and went on to win a lucrative U.N. deal. According to Yves Genier, a Swiss journalist from the newspaper l'Agefi who has been looking into Cotecna's role here, the prosecutor's case was dropped for lack of compelling public interest.

There is no doubt that the U.N. relief effort in Iraq has been a global scandal. A monstrous dictator was able to turn the Oil-for-Food program into a cash cow for himself and his inner circle, leaving Iraqis further deprived as he bought influence abroad and acquired the arms and munitions that coalition forces discovered when they invaded Iraq last spring.
A U.N. culture of unaccountability is certainly also to blame. And Security Council members share responsibility for lax oversight, no doubt one reason there is so little appetite for an investigation.

But Saddam's ability to reap billions for himself, his cronies and those who proved useful to him abroad depended on individuals who were his counterparties. These deserve a full investigation if the U.N.'s credibility is to be restored and its role in Iraq and elsewhere trusted. Especially now, with the U.N. taking a more active role in Iraq, it's time we knew more about how the oil-for-food scandal was allowed to happen.

Ms. Raphael is editorial page editor of The Wall Street Journal Europe.

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>> "..."

Red-Faced U.N. Finds Black Box of the 1994 Rwandan Air Crash
By WARREN HOGE
UNITED NATIONS, March 11 -- Embarrassed officials disclosed Thursday that the United Nations was unknowingly holding an airplane black box shipped here from Africa after the 1994 crash that killed the presidents of Rwanda and Burundi and set off the massacre of hundreds of thousands of Rwandans.
Secretary General Kofi Annan's spokesman, Fred Eckhard, who earlier this week had denied knowledge of the box, said Thursday that a search provoked by journalists' questions had turned it up in a locked file drawer in the office of the United Nations' air safety coordinator, across the street from headquarters.
Mr. Eckhard said diary entries showed that the officials who received the black box a few months after the crash concluded from the recorder's "pristine condition" that it could not have been in the wreck. He said it had never been opened nor had its tape been played.
He said that it was being given to outside experts to determine whether it was the black box from the 1994 wreck and that Mr. Annan had ordered the United Nations inspector general to investigate how it had gone unaccounted for. "The secretary general wants to know exactly what went on 10 years ago that this matter wasn't reported up the chain," Mr. Eckhard said.
Mr. Annan, speaking to reporters after his monthly lunch with Security Council members, said he was "incredulous," and called the situation "a real foul-up, a first-class foul-up."
Thursday's announcement followed a report in Le Monde, a French daily, about an unpublished French investigation that accused the United Nations of withholding the downed aircraft's flight recorder.
Mr. Eckhard acknowledged that he had "ridiculed" the report when first asked about it on Tuesday, but that a subsequent inquiry showed that the black box had been sent to New York three months after the crash, in an official pouch from the United Nations peacekeeping operation in Kigali, the Rwandan capital, by way of Nairobi, Kenya.
The index numbers and details on an accompanying tag had been circulated in aviation circles, but there had been no confirmation of the black box's origins, he said.
The air-safety officials, after concluding that it was not the right black box, apparently decided to store it in a file cabinet but never notified anyone in the secretary general's office, Mr. Eckhard said.
Mr. Annan was head of the United Nations peacekeepers when the massacre occurred. He has often cited the failure to stop the mass killings as one of the lowest points in the history of the international community, and some reports have singled out the United Nations for criticism.
The Rwandan president, Juvenal Habyarimana, and his Burundian counterpart, Cyprien Ntaryamira, both of the dominant Hutu tribe, died on April 6, 1994, when their Falcon 50 aircraft was brought down by two ground-to-air missiles as it approached the airport in Kigali.
Their deaths triggered a 100-day wave of killings in Rwanda of an estimated 800,000 minority Tutsi and moderate Hutu by extremist Hutu.
It has never been certain who shot down the plane, with suspicion alternating between Tutsi rebels and hard-liners in the Habyarimana government worried that Mr. Habyarimana was yielding to international pressure to bring Tutsi into the government.
Le Monde said the French investigation -- carried out by the antiterrorist division of the French judicial police -- concluded that it was Paul Kagame, Rwanda's current president, who ordered the plane shot down. At the time, Mr. Kagame was the leader of a rebel Tutsi movement, the Rwandan Patriotic Front.



Copyright 2004 The New York Times Company |

Posted by maximpost at 12:10 AM EST
Permalink
Thursday, 11 March 2004

>> REBUILDING IRAQ?

Iraqi Currency Exchange Comes Up Millions Short
Cashiers Held Responsible for Missing Funds

By Ariana Eunjung Cha and Omar Fekeiki
Washington Post Staff Writers
Thursday, March 11, 2004; Page A16
BAGHDAD -- For the past month, Nadhima Hussein and 12 other women have been locked inside a dark, fly-infested room at a police station here. The Iraqi Finance Ministry says Hussein, a bank manager, owes them millions of dollars to compensate for counterfeit or missing money her branch accepted during the currency exchange that ended in mid-January. She says she did nothing wrong.
The cash swap, designed to erase the image of former president Saddam Hussein from Iraqi bills, was among the most visible projects of the U.S.-led reconstruction, and, on the surface, things appeared to go smoothly. The transport trucks were not hijacked, the banks were not held up. The exchange, which took place between Oct. 15 and Jan. 15, was credited with helping to stabilize the economy.
But a Finance Ministry audit that began a few weeks ago turned up a surprise: The amount of new money given out exceeded the amount of old money taken in by more than $22 million. The ministry has accused bank employees, almost all of whom are female cashiers, of stealing the money for themselves or for organized crime groups. It has sent out notices to hundreds of them, demanding that they repay the money or face imprisonment.
The accused say others had access to the money after it had been counted and that the new government, in a rush to judgment, is acting just like the old government, putting the blame for its own mistakes or corruption on rank-and-file workers. Demonstrations this month have called for the release of the cashiers, who are believed to be the largest group of women to be detained since Hussein was toppled last year.
"They took these women as a sacrifice, so that their colleagues will be frightened to pay the money back and that their problem of the shortage will be solved," said Falih Maktuf, a lawyer who has volunteered to represent the women without pay.
Suspects who maintain their innocence are eligible for release on bail, but few can afford it. Maktuf has asked that the women be released without bail pending trial. They will be tried by a special judge with expertise in economic crimes.
Law is still a fluid concept in the new Iraq. On Monday, the Iraqi Governing Council approved an interim constitution with a bill of rights, but it is a legal framework that does not address the nitty-gritty of crime and punishment. Committees are drafting new foreign exchange laws and guidelines for the role of regulatory bodies. In the meantime, most of the laws in effect during Hussein's rule are still being followed.
The banking scandal is one of several examples of alleged government corruption in postwar Iraq that have hampered reconstruction efforts. The Oil Ministry spent months waiting for spare parts for pumping stations and then discovered forged records showing the equipment had been paid for but never shipped from Amman, Jordan. The Interior Ministry has fired border police who took bribes to let people enter the country from Iran without proper identification. Officials at Iraq's five ports have disciplined workers for stealing from humanitarian aid shipments.
The Governing Council and the U.S.-led occupation authority began a crackdown on corruption a few weeks ago, creating commissions with independent authority to investigate possible crimes in government ministries. A new law governing the operations of the Central Bank authorizes the creation of a financial services tribunal, which will determine the fate of the cashiers.
"In the past, employees did not have any respect for laws. We want to teach people this respect," said Sabah Nouri, head of the Finance Ministry's bank audit committee.
One cashier has confessed to accepting counterfeit old dinars and exchanging them for new ones because she pitied the old man who brought them to the bank. Another said she inserted some white papers in place of old bills and paid herself in new Iraqi dinars. But the rest of the accused say they are innocent and that either someone else tampered with the money, they made an honest mistake in counting it or they unknowingly accepted counterfeit currency.
Their attorneys said the women were arrested because they were easy targets. Samir Adel, the head of the Worker-Communist Party of Iraq, accused the new Iraqi ministries of using "the same old Baathist ways."
"They don't have evidence," he said, "but they imprison people."
Nadhima Hussein was summoned to the Finance Ministry in February for what she was told was urgent business. There, she recalled, a government representative laid out several bricks of forged money and told her they had come from the bank she manages -- a branch of Rafidain Bank in Nasiriyah, about 200 miles south of Baghdad. Hussein, 35, said she was called a thief and told to repay $6.9 million.
"This is fiction," she said she replied. She told them she knew nothing about the fake money and therefore could not return it. A few hours later, she was in jail.
The currency exchange followed months of planning by experts from the U.S. Treasury Department and other foreign government agencies. Occupation officials hoped to get rid of dinars with Hussein's portrait and replace them with bills carrying images from Iraq's history.
They devised an elaborate system for security. They flew the new money in on jumbo jets direct from the printers, paid for four armed escort vehicles for each truck carrying the money, and asked U.S.-led military forces to guard storage facilities.
At each bank, a cashier counted and inspected old money, then dipped it in red ink so it couldn't be used again. With a rubber band, the cashier attached to the brick of money a credit card-sized piece of paper with her name on it. The money was sewn up in a bag and taken to be burned. But between the point where the cashiers signed off on their work and the time the money was destroyed, several other people handled the money, according to a description of the process by occupation officials.
Representatives from the Worker-Communist Party of Iraq, Women's Freedom Organization and other workers' rights groups who have reviewed procedures for the cash exchange also said there were several vulnerable points. Maktuf, the lawyer, said the manager and other bank employees had access to the old cash before it was destroyed. Drivers who took the old cash to warehouses for eventual destruction -- and the Central Bank employees who accompanied each driver -- also could have tampered with the money, he said. Because the ink used to mark the obsolete bills could be washed away with special chemicals, he added, the old bills were not worthless.
But Nouri, of the Finance Ministry, said he believed it was impossible that anyone but the cashiers could have inserted forged bills or taken some of the money.
Iraqi Police Col. Wahda Nasrrat, head of the new economic crimes section, said he expected more arrests but that people other than the cashiers may be involved in the forgeries and stealing. The system that was used to transport the money "is not a good system and can be broken," Nasrrat said.
Nadhima Hussein now shares a large, drafty room with a group of other suspects. They sleep on the concrete floor on piles of blankets and spend their time sharing stories about their families and crying. Among Hussein's roommates is Zainab Jabbar, 35, a cashier at a Rasheed Bank branch near the Shaab Stadium in Baghdad. Jabbar has been asked to pay $40,000. With her salary of about $180 a month, she calculated, it would take her 19 years to repay.

? 2004 The Washington Post Company

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>> REBUILDING 2...

Missteps Led to Canceled Iraq Contract
House Panel to Begin Hearings on Procedures; Pentagon Awards 7 New Projects
By Mary Pat Flaherty and Jackie Spinner
Washington Post Staff Writers
Thursday, March 11, 2004; Page A22
Vague contract language, missing paperwork, staff turnover and general instability on the ground led to such flaws in a $327 million contract to outfit the new Iraqi Army that the work had to be canceled and rebid, according to a senior U.S. Army official involved in the contracting.
U.S. contracting officers working for the Coalition Provisional Authority in Baghdad were imprecise in describing the work needed when they sought bids and they did not follow their own procedures for ranking offers, the Army official said.
The hostile setting and a Baghdad staff too small to do the job help explain the failures but there is "no excuse for doing this with a contract of this magnitude," said the Army official, who would speak only on background about the problems his office has uncovered.
The cancellation of what had been the largest non-construction contract yet awarded in the Iraqi rebuilding effort comes as the House Government Reform Committee is set to hold hearings today on contract coordination and management in Iraq. Meanwhile, the Defense Department announced yesterday that it had awarded seven contracts to support the Program Management Office in Baghdad, the entity that will oversee the spending of the $18.6 billion in supplemental reconstruction funding that Congress authorized last fall.
Retired Rear Adm. David Nash, who heads the Program Management Office, said the remaining 10 construction contracts will be awarded within the next 30 days, two months late.
"You can do things expeditiously but you still have to do it correctly," said Nash, who is testifying today before the congressional panel. "There's a balance."
The Iraqi Army contract, funded by U.S. tax dollars, was awarded in January to Nour USA Ltd., a Vienna firm. The firm's bid drew immediate formal protests from several losing companies and prompted U.S. Army lawyers and Pentagon-based officials to begin a review that led to the contract's cancellation Friday. The Washington reviewers could not reconcile the facts presented on the final evaluation sheets for bidders with information in the contract files and noticed missing documents, said the contracting officer, who added that he had not seen anything comparable during his 29 years in Army contracting.
Normally, he said, "the paperwork follows a consistent trail" that leads to the overall rating for bidders. "We couldn't track" the factors for the ranking, he said.
CPA officials in Baghdad declined to talk about the contract and referred all questions to the Army. However, Lt. Col. Joseph M. Yoswa, a Defense Department spokesman based in Washington for the CPA, said yesterday, "We have a much better capability of contracting here in Washington. We have the experience here -- not saying that the CPA and civilians and military in Iraq are doing things wrong. But they have a lot of pressure they are dealing with. Contracting is not a simple process, and this is important. We've got civilians on the ground doing work, and we're still in combat conditions. It's not easy."
The language used to describe the required work was so "ambiguous," the Army contracting official said, that it could have been held against the government by losing firms if the contract moved forward. The vague language, he said, may help explain the wide range of bids on the work made by 19 firms, ranging from Nour's $327 million to a high of more than $1 billion.
The contract's cancellation, the Army stressed, "is not a reflection on Nour or its capabilities."
In interviews, Nour USA said it won the contract based on merit and stood by its proposal. The company has drawn attention because its president, A. Huda Farouki, is a financier and friend of Ahmed Chalabi, chairman of the U.S.-appointed Iraqi Governing Council. Nour spokesman Robert Hoopes has said there is no business relationship between the two men. A Nour press release said any suggestion that politics played a role in the contract is false.
Ongoing hostilities in Iraq make it hard to be as exacting in contract requests as might normally be expected, said the senior Army official, however "we need to be as informative as we can." The original contract, he said, should have been more precise about equipment needs or the number and range of sites in which the work would be done -- factors that can dramatically influence costs.
The problems were exacerbated by staff turnover. The military contracting officer who had handled the bidding in Baghdad was rotated back to the United States on regular duty a week before the contract was awarded, the Army official said.
A new contract to outfit the Iraqis likely will not be awarded for 60 to 90 days, said Mark J. Lumer, deputy assistant secretary of the Army for Iraqi operations, policy and procurement, who spoke at a Pentagon briefing yesterday. The Army could piggyback on several existing government contracts to buy some supplies more quickly, the Army contracting official said -- using an existing law enforcement contract, for example, to purchase some weapons.
But the rebidding of the main contract will set back the establishment of new Iraqi forces as coalition officials race to hand off sovereignty this summer to the Iraqis.
Army contracting officers in Washington will draft and award the new contract.
Delays in equipping the new Iraqi Army and other Iraqi security forces have frustrated U.S. military commanders in the field, said Army Maj. Gen. Charles H. Swannack Jr., commander of the 82nd Airborne Division.
In a press briefing yesterday in Baghdad, he said that "if we had the equipment for these brave young men, we would be much farther along." Swannack said he would have drawn on funds available to him as a commander to buy some equipment earlier had he known the extent of the delays.
Rep. Thomas M. Davis III (R-Va.), who called today's House hearing, said of the canceled contract: "They probably don't have as many contracting officers over there as they need." And, he said, "they need to make a decision on what to do next time on this. What did they learn? When you're making decisions in a war zone you always make mistakes."


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>> REBUILDING 3...

Administration pressed for real estimate of war's cost

By Pauline Jelinek
Associated Press
Pressed to estimate the cost of future operations in Iraq, the Defense Department has repeatedly said it's just too hard to do.
Now the ranks of disbelievers are growing -- in Congress and among private defense analysts. Some say the Bush administration's refusal to estimate costs could erode American support for the Iraq campaign, as well as the credibility of the White House and lawmakers.
"It is crucial that we have every bit of information so we can level with the taxpayer," Democratic Rep. David Obey fumed recently at Defense Secretary Donald H. Rumsfeld. "We don't have that information now."
"The White House plays hide and seek with the costs of the war," said Sen. Robert Byrd, D-W.Va.
The object of their ire is President Bush's proposed defense spending for the budget year beginning Oct. 1 -- a $402 billion request that didn't include money for the major military operations in Iraq and Afghanistan.
And it's not just Democrats who disagree with the administration's approach.
Republican chairmen of the House and Senate budget committees penciled in tens of billions of dollars for the two military campaigns in spending plans they began pushing through Congress this week.
Asked at a recent congressional hearing why costs for Iraq were not included in the Bush administration's budget, Pentagon comptroller Dov Zakheim replied: "Because we simply cannot predict them."
Yet many contend the administration at least knows that roughly 100,000 soldiers will remain in Iraq for another year, and could have budgeted an estimate or a placeholder request for that.
"We know it will not be free," said Steve Kosiak of the Center for Strategic and Budgetary Assessments.
Private and congressional analysts, in fact, have done a number of studies and projections of possible costs:
* Daniel Goure of the conservative Lexington Institute said he expects troop levels to gradually drop over five years to one-half or one-third the present deployment -- meaning 30,000 to 50,000 Americans troops could remain in Iraq through 2009.
* The Congressional Budget Office a few months ago estimated the cost to occupy Iraq through 2013 at up to $200 billion, depending on troops levels.
* Casualties could rise to at least 1,000, said a recent report by Anthony Cordesman of the Center for Strategic and International Studies, a frequent Pentagon adviser. "One thousand or more dead in Iraq is hardly Vietnam," Cordesman said. "But it must be justified and explained, and explained honestly."
The Council on Foreign Relations, citing polls that show American support for the mission slipping, urged leaders of both parties this week to publicly commit to a multibillion dollar program over at least the next several years, outlining "the magnitude of resources that will be necessary, even if they cannot identify all of the specific requirements."
White House budget chief Joshua Bolten acknowledged in a briefing with reporters last month that the military will need money over and above the defense request -- up to $50 billion the administration will seek in a so-called emergency supplemental budget for Iraq and Afghanistan. It used a similar supplemental last fall to ask for $87 billion for Afghanistan and Iraq
But administration officials don't plan to ask for that supplemental, or specify what it might include, until sometime after Jan. 1, 2005 -- about two months after November's presidential election.
Had Bush included it in the budget proposal sent to Congress in February, the government's surging deficit problem would have looked even worse.

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>> SYRIA WATCH...

Generals say they need help securing Iraqi borders
By John Diamond
USA Today
U.S. military commanders say they are struggling to secure the borders of Iraq, particularly with Syria in the remote western desert, to prevent Islamic militants from crossing into Iraq to set up operations.
The commander of U.S. forces in western Iraq told Pentagon reporters by video-conference Wednesday that field units are pressing for more men and vehicles to cover huge, sparsely populated regions where small terrorist cells of five to eight people each may be infiltrating on their way to Iraqi cities.
"Our biggest fight is in regards to disallowing terrorist organizations to get established out there in the west," Army Maj. Gen. Charles Swannack Jr. told Pentagon reporters from Baghdad. "You must understand the vastness of the border region out there. It's 850 kilometers (527 miles) of desert with a 10-foot, 12-foot berm marking the border."
The problem is much the same in northern Iraq, along the border with Turkey and Iran, according to Brig. Gen. Carter Ham, who spoke to Pentagon reporters in a teleconference Tuesday. Ham said he and other field commanders have been pressing their superiors to provide additional border police units, better training and more equipment.
Swannack, who said he had to order body armor, radios and vehicles out of his own unit's budget because of bureaucratic delays, said Iraqi forces taking over border control need SUVs to cover the many unofficial crossing points into Iraq from Saudi Arabia, Jordan and Syria. These are routes that have been used by smugglers and nomads for 2,000 years.
About 18,000 troops from the Army's 82nd Airborne Division and other Army units under Swannack's command are about to give the Marines responsibility for Al-Anbar province, Iraq's largest, a region that stretches from the edge of Baghdad along the Euphrates River and such hostile cities as Fallujah to the vast western border regions. U.S. intelligence has been watching this area closely, both for terrorists coming in and for Iraqi weapons scientists going out.
"It's a long, porous border," CIA Director George Tenet said in Senate testimony Tuesday. "Syria could do far more than they are today to close off at least major crossing points."
As of last fall, Swannack said, "It was a wide open border," to terrorists, foreign fighters and smugglers. The situation is improving with the establishment of new Iraqi police organizations that are taking up some of the patrol work. But in Swannack's huge area, border police have a few buses and "a couple of small trucks." They still lack the equipment to get to the remote desert crossings.
In Al-Anbar province, Swannack estimated there are between 50 and 80 foreign terrorists operating in eight to 10 cells, mostly in cities such as Fallujah and Ramadi. U.S. forces have been making progress getting tips about the activities and whereabouts of these cells because, Swannack said, "the Iraqis don't want them there."



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>> DULLES WATCH...

Financial Agencies Criticize U.S. for Detaining Spanish IMF Worker at Dulles
By Mary Beth Sheridan
Washington Post Staff Writer
Thursday, March 11, 2004; Page A12
A Spanish economist working for the International Monetary Fund was handcuffed as he got off a flight at Dulles International Airport last weekend and questioned for three hours, an incident that prompted startled complaints from international financial institutions in Washington.
Alex Segura, 33, who lives in Springfield, said he was detained Saturday by U.S. Homeland Security officials as he returned from a work trip to Senegal. He said the officials questioned him about his travels and passport and searched his luggage before freeing him with no explanation.
A Homeland Security spokeswoman said Segura's name and birth date matched those of a "dangerous individual" listed in federal security databases.
"It was unfortunate. But his name came up as a match when we do our advanced passenger information. Obviously Mr. Segura is not a terrorist," said the spokeswoman, Christiana Halsey, who works for the Customs and Border Protection agency within Homeland Security.
She added that "with the new focus on terrorism . . . these mistakes are going to happen."
Since the incident, e-mails have ricocheted through international financial institutions in Washington, with employees expressing outrage and concern that they, too, could be detained. The agencies employ thousands of people from around the globe, who routinely travel abroad for work.
A spokesman for the IMF, William Murray, said the agency had complained to the U.S. executive director's office at the fund, which represents the U.S. government.
"The management of the IMF is extremely concerned about the development and asked the U.S. executive director's office to raise this with the appropriate authorities," Murray said.
The World Bank also contacted U.S. authorities to see "what can be done to avoid this sort of incident happening in the future," the bank said in a memo to its staff.
Segura said Homeland Security officials boarded his Air France plane shortly after it arrived from Paris and made a beeline for him. He said he showed them his Spanish passport, which carried the G-4 visa given to employees of international organizations, and also handed over his United Nations identification. The officials asked him to leave the plane and promptly handcuffed him, Segura said.
The officers then drove Segura to the main terminal, took off the handcuffs and questioned him. They refused to let him call his wife, who was waiting in the terminal, but eventually sent an officer to contact her, according to Segura and the Customs spokeswoman.
"What's really annoying, when you come to the U.S. . . . you feel like they can do anything to you," Segura said. He added, however, that the officers were polite.
Segura said his previous trip abroad, a visit to Peru in December, occurred without incident.
Halsey, the spokeswoman, said agents have to follow security procedures when they believe a dangerous person is arriving. She said she could not provide details about the person named Segura who was on the government's lookout list.
Segura said he told the U.S. officials that his previous passport had disappeared about five years ago, when he submitted it to the U.S. Embassy in Madrid for a visa. It was not clear whether the person on the lookout list might be using that document.


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>> PENTAGON WATCH...

Nominee to Head Army Withdraws
Roche's Air Force Leadership Criticized
By Bradley Graham
Washington Post Staff Writer
Thursday, March 11, 2004; Page A04
The Bush administration dropped efforts yesterday to shift James G. Roche from heading the Air Force to heading the Army, acknowledging that his nomination had become so mired in controversy over a cadet sex scandal and a potential deal with Boeing Co. to lease tanker aircraft that Congress was unlikely to act on the appointment this year.
The admission of defeat highlighted the difficulties confronting the administration in trying to put both controversies behind it. Roche's nomination as Army secretary, presented last spring as a way to bring energetic new leadership to that service, instead drew congressional ire at the Pentagon's inattention, questionable judgments and resistance to demands for internal documents.
Although Roche took forceful action early last year to probe reports of sexual assaults at the Air Force Academy, investigations have continued into assault cases stretching back a decade. Calls in Congress have persisted for some Air Force leaders to be held accountable for past lax enforcement.
In the past week, new reports have emerged of flaws in the handling of sexual assault cases by the Air Force's Pacific command, and the Air Force has launched a service-wide review.
Even more problematic for Roche was the Air Force's plan to lease as many as 100 Boeing 767s as refueling tankers. Roche championed the $21 billion proposal as a novel way of bolstering an aging tanker fleet, but critics attacked it as corporate welfare for Boeing that would needlessly raise taxpayer costs. Investigators also are examining alleged improper contacts between the Air Force and Boeing during negotiations on the deal.
Additionally, the matter has grown into a struggle between Congress and the administration over access to internal documents. Sen. John McCain (R-Ariz.), a leading congressional opponent of the plan, put a hold on nominations of civilian Pentagon officials to protest the administration's unwillingness to surrender Roche's e-mails and other material related to the tanker deal. McCain said yesterday that removal of Roche's nomination would have no effect on other appointments being held up.
"I still believe we need these documents, and I will continue to fight for them as long as I can hold the nominations," he said in a phone interview.
In a brief statement released by the Pentagon, Roche said he requested that his nomination be withdrawn. "Given the range of issues before the Senate in a busy legislative year, I accept that my nomination is unlikely to be considered this year," he said, adding that he intends to continue as secretary of the Air Force.
An official close to Roche said that months ago, Roche had given Defense Secretary Donald H. Rumsfeld a standing offer to remove his name from consideration. Rumsfeld, the source said, accepted the offer this week.
"At several points in the last few months, Roche went to Rumsfeld and said, 'If you want me to back out, I will,' " the official said. "Rumsfeld was all, 'No, you're the choice. Let's go forward with it.' I think there was just a realization by Rumsfeld at this point in the calendar" that time had run out.
Rumsfeld had asked Roche, a 23-year Navy veteran and former Northrop Grumman Corp. executive, to move to the Army last spring, as part of an attempt to bring in new civilian and military leadership that would modernize and restructure the service.
Rumsfeld had dismissed the previous secretary, Thomas E. White, after months of strained relations. He also had summoned Gen. Peter J. Schoomaker from retirement to take over as Army chief of staff. Schoomaker succeeded Gen. Eric K. Shinseki, who like White had clashed with Rumsfeld over the pace and nature of Army modernization.
But Roche's nomination quickly ran into trouble when a congressional commission probing the academy sex scandal concluded that Air Force leaders had not done enough to prevent sexual assaults or respond to reported cases for much of the past decade.
Roche purged the academy's leadership earlier in the year and issued new policies to fortify the school's ability to monitor and respond to sexual misconduct. Nevertheless, the Senate Armed Services Committee made clear it would not act on his nomination until after an investigation by the Air Force's inspector general.
That investigation, due soon, will comment positively on Roche's actions over the past year, according to the official close to him.
The tanker proposal, meanwhile, remains in limbo pending not only resolution of the documents dispute with Congress but also investigations by the Pentagon's inspector general, federal prosecutors and securities regulators into whether the deal was tainted by unethical conduct.
In November, Boeing fired two senior executives -- its chief financial officer, Michael M. Sears, and Darleen A. Druyun, a former Air Force procurement official. The company accused Sears of beginning employment discussions with Druyun while she was still overseeing Boeing contracts at the Air Force. The company's chief executive, Phil Condit, resigned shortly afterward.
Rumsfeld also ordered a review of the condition of the existing tanker fleet and other options for replacing or refurbishing it.
Les Brownlee, the undersecretary of the Army, has been serving as interim secretary, and a senior defense official said yesterday that Bush would likely move to make Brownlee permanent. Brownlee is a former Senate staff member with deep ties to Congress.
In another personnel matter yesterday, the White House said that Bush had picked the FBI's chief financial officer, Tina W. Jonas, to take over as the Pentagon's chief financial officer, succeeding Dov S. Zakheim, who announced his resignation Tuesday. Before joining the FBI in 2002, Jones was deputy undersecretary of defense for financial management. She also worked for the House Appropriations Committee, the White House Office of Management and Budget, and the Arms Control and Disarmament Agency.
Staff writers Renae Merle and R. Jeffrey Smith contributed to this report.

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GAO Urges Better Tests of Missile Defense System
By Bradley Graham
Washington Post Staff Writer
Thursday, March 11, 2004; Page A08
The Pentagon has taken some steps toward more realistic testing of the antimissile system that it plans to deploy this year to protect the United States, but many aspects of the system remain to be tested, according to a congressional report.
The report, prepared by the General Accounting Office, expressed concern about a lack of test data showing whether the system can work using all its final parts instead of prototypes, and whether it can adequately identify warheads in a field of decoys. Also still to be demonstrated, the report said, are such actions as multiple launches of interceptors, nighttime intercepts and operations under adverse weather conditions.
The report, a copy of which was made available to The Washington Post ahead of public release today, focused on assessing the Bush administration's efforts against a list of 50 recommendations issued in the final weeks of the Clinton administration by Philip Coyle, then the Pentagon's chief weapons evaluator. President Bill Clinton decided in August 2000 not to proceed with deployment of the antimissile system pending further development and testing.
President Bush has substantially altered the program, expanding the scope of experimentation and committing the country to deploying a rudimentary national antimissile system by the end of 2004. Even so, most of the recommendations put forward by Coyle "are still relevant," the GAO report said, "because the technical challenges and uncertainty with developing, testing, and fielding effective defensive capabilities . . . remain significant."
"The administration hasn't gone through the technical and testing steps the way they've been advised to do by the Pentagon's own operations and testing people," said Rep. John F. Tierney (D-Mass.), who requested the GAO review. "The report very clearly indicates that there's not been enough progress to give us any sense of security and comfort that this system is at a place where it ought to move forward."
The report said construction of a "test bed" facility in Alaska will help bring more realism and complexity to a testing program whose eight flights have been limited to a single scenario -- a target missile has flown out over the Pacific from California and the interceptor has launched from the Marshall Islands. Greater attention also is being paid to improving the system's ability to distinguish enemy warheads from decoys, the report said.
But the report warned that test plans through 2007 do not include sufficiently challenging targets and decoys. It said the first attempt at launching two interceptors against two targets is not scheduled until 2007. And no plans exist to assess the effects of severe weather on the system's performance or to conduct flight tests "under unrehearsed and unscripted conditions," the report said.
The antimissile system, when activated, will rely on tracking data from an old surveillance radar in Alaska, called Cobra Dane. But the report noted that the radar will not have been tested in its new role and will lack the ability, even with software improvements being completed, to provide more than a rudimentary analysis of incoming missile threats.
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>> A OF E...
Alarm Raised Over Quality of Uranium Found in Iran
By CRAIG S. SMITH
VIENNA, March 10 -- United Nations nuclear inspectors have found traces of extremely highly enriched uranium in Iran, of a purity reserved for use in a nuclear bomb, European and American diplomats said Wednesday.
Among traces that inspectors detected last year are some refined to 90 percent of the rare 235 isotope, the diplomats said. While the International Atomic Energy Agency has previously reported finding "weapons grade" traces, it has not revealed that some reached such a high degree of enrichment.
The presence of such traces raises the stakes in the international debate over Iran's nuclear program and increases the urgency of determining the uranium's origin. If the enrichment took place in Iran, it means the country is much further along the road to becoming a nuclear weapons power than even the most aggressive intelligence estimates anticipated.
Iran has said that its nuclear program is for purely peaceful purposes, while the United States contends it has secretly tried to produce nuclear weapons. The atomic agency is expected to vote Friday on a resolution criticizing Iran for lack of candor about its nuclear efforts.
Iran has said that all of the highly enriched uranium found on its nuclear facilities was contamination that occurred before imported equipment arrived in the country. Iranian officials said they could not identify the origin of the contamination because the equipment was imported through middlemen in five countries.
I.A.E.A. officials said the contamination may have originated in Pakistan. Abdul Qadeer Khan, a Pakistani nuclear weapons scientist, has admitted secretly supplying uranium enrichment equipment to Iran and other nations. The agency has asked Pakistan for permission to take environmental samples from its enrichment facilities to see if they match the weapons-grade traces in Iran. "Pakistan could let Iran off the I.A.E.A. hook," said a European diplomat here.
American officials argue that traces of such highly enriched uranium, regardless of their origin, are another disturbing clue to what they believe are Iran's hidden ends.
"What it shows is that they have a system that is capable of producing weapons grade uranium," said an American official speaking from Washington. "If it's an assembly that was removed from Pakistan or elsewhere, it's already battle tested," he said.
On Wednesday, Iran's defense minister, Ali Shamkhani, acknowledged for the first time that the Iranian military had produced centrifuges to enrich uranium, the Associated Press reported from Teheran. He said they were manufacturing unsophisticated models for civilian users. The admission came after the I.A.E.A. presented Iran with evidence that some of its nuclear activities were taking place on military bases.
"It's rather strange, don't you think, that the military gets involved in the electric-power generating business?" asked one senior American official. "Or that they forgot to mention this before, when they were `fully disclosing' all details of their program?" American officials are lobbying hard to keep international pressure on Iran.
An I.A.E.A. resolution on Libya, passed by the agency's board of governors on Wednesday, is part of that campaign. The resolution, negotiated by the United States, Britain and Libya in London last week, praises Libya for swiftly dismantling the nuclear weapons program discovered last year. But the resolution's key paragraph calls for the agency to report Libya's past breaches of the Nonproliferation Treaty to the United Nations Security Council.
"The trap is sprung," said a senior American administration official speaking from Washington, saying that the Libyan resolution sets a precedent for future I.A.E.A. resolutions on Iran. "It makes it very hard not to at some point address Iran's breaches by referring them to the Security Council," he said.
The United States has been lobbying since late last year to threaten Iran with Security Council scrutiny if it continued to withhold information on the scope of its nuclear program. Britain, France and Germany have resisted making an explicit threat for fear that it would anger Iran and hinder future cooperation.
Iran warned Wednesday that American-led criticism could "complicate" its relations with the I.A.E.A. "America is taking advantage of any opportunity to put pressure on Iran," Foreign Minister Kamal Kharrazi said in Teheran, the Associated Press reported. "Unfortunately the I.A.E.A. is sometimes influenced in this regard."
Mr. Kharrazi was quoted as saying that Iran would resume enriching uranium for peaceful purposes once its relations with the I.A.E.A. "return to normal."
David E. Sanger contributed reporting from Washington for this article.

Copyright 2004 The New York Times Company |
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Iran's muffled coup

By Seth Cropsey

Iran's latest coup d'etat did not use guns, but silence. Faced with rising dissent and the prospect of reformists winning more seats in parliament, the country's hard-line mullahs gagged opponents, shut down public debate, and perhaps most important, silenced national media from reporting the facts. Until that silence is broken, people in Iran and around the world will pay the price.
The coup began with February's elections to the nation's parliament, whose incumbent reformist majority, with President Mohammad Khatami, had challenged the hard-liners' control. But under the pseudo-democratic constitution, only candidates approved by the country's repressive Guardian Council could be on the ballot. In January, the council barred thousands of reformists, including more than 80 incumbent lawmakers. After a three-week sit-in, 125 lawmakers resigned in protest, and reform parties urged people not to participate in the farcical balloting. The unsurprising result put hard-liners in control, despite low voter turnout and many blank ballots.
If more than a quarter of the members of the U.S. Congress staged a three-week sit-in on the floor of the Capitol, and then resigned their seats, you can bet American TV coverage would be 24-7. Not in Iran. As world media reported the deepening crisis, official news sources, including the country's only domestic television sources, stood mute.
Iran's official TV news channel, Voice and Vision, imposed a near-blackout on the MPs' sit-in, and even censored President Khatami's own statements, over protests from his office.
There is, in fact, nothing new about the regime's effort to control information. The Islamic Republic of Iran has consistently restricted the information that reaches the public. There is only one official TV broadcaster, although many Iranians risk owning banned satellite dishes to pick up international TV broadcasts. Newspapers must be licensed by the government, which has shut down scores.
Computer-savvy Iranians have turn to the Internet for news; but Internet service providers need government permission to operate, and there is an extensive official blacklist of banned international news sites. After the February elections, even more Web sites were threatened.
This heavy hand is meant to intimidate and control, but brave journalists continue working. There can be harsh consequences. In a special "Press Court," scores of editors and reporters have been tried and sentenced to jail and even floggings for such crimes as "promoting subjects that might damage the foundation of the Islamic Republic."
As 2004 began, 10 journalists were known to be imprisoned, including respected investigative journalist Akbar Gandji, and the ailing, 74-year-old, Siamak Pourzand, held in solitary confinement and reportedly tortured.
Today, new trials are scheduled for journalists who tried to report on the election crisis.
The hard-liners also employ the threat of violence: Militia thugs break up public meetings to silence speakers they oppose, from reform candidates to Nobel Peace Prize winner Shirin Ebadi. Journalists have also been targets of extrajudicial killings. The case of Canadian photojournalist Zahra Kazemi, murdered last summer by an Iranian intelligence agent, made international news.
What's lost when people lose free speech and a free press? Plenty. Without credible news sources, Iranians can't get the information they need about economic issues like lagging per capita income and corruption; or education, health, and environmental problems; or the fatal unreadiness to respond to catastrophes like the Bam earthquake.
Nor can Iranians get straight answers about their government's military and foreign policies: the extent of nuclear, chemical and biological weapons programs, Iran's support for terrorism; and the worldwide concern these have engendered. Without information -- without genuine democratic controls -- Iran's secret programs will continue posing a security threat to the U.S. and the Free World.
It is a testament to the Iranian people's love for freedom that, despite the hurdles, they continue to reach for truth, for democracy, for open relations with the world.
In a public-opinion poll sponsored in late 2002 by members of parliament, 75 percent of Iranians supported dialogue with the U.S., and almost half approved of U.S. policy toward their country. The authorities responded by jailing the pollsters.
The Iranian regime's tools of silence speak volumes about the nature of its rule. But Iranians, like captured peoples before them, are trying to search out the information they need.
They deserve our help and are getting it. U.S. broadcasting to Iran includes Radio Farda -- "tomorrow," in Iran's Farsi language -- and, beginning last July, the daily News and Views televised credible news about issues concerning Iranians.
News and Views reaches millions of Farsi-speaking Iranians who aren't fluent in English, and thus can't benefit from global broadcasts like CNN. And, unlike global broadcasts, News and Views focuses on Iran, permitting real depth of coverage. The program is on the air one half-hour daily.
But News and Views could do more; it could cover even more voices and issues, interview more experts on democracy from the U.S. and other free nations, and increase its dialogue with and among the Iranian people.
"Were it left to me to decide whether we should have a government without newspapers or newspapers without a government, I should not hesitate a moment to prefer the latter," said Thomas Jefferson. He went on to explain why.
If ever people lose their knowledge of and involvement in public affairs, then all the officials of government -- "Congress & Assemblies, judges & governors, shall all become wolves."
Today, the Iranian people try to keep their country from the wolves of injustice, repression and corruption. They will not succeed until all Iranians have access to real news and views.

Seth Cropsey is director of the U.S. Government International Broadcasting Bureau.



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Iranians to Resume Enriching Uranium
Minister Discloses Military's Atomic Role
By Ali Akbar Dareini
Associated Press
Thursday, March 11, 2004; Page A22
TEHRAN, March 10 -- Iran said Wednesday that it would resume enriching uranium and warned that it might quit cooperating with the International Atomic Energy Agency, which it accused of kowtowing to the United States at a crucial meeting in Vienna.
Defense Minister Ali Shamkhani also said the Iranian military had built nuclear centrifuges for civilian use -- the first time the country has acknowledged that its military was involved in its nuclear program.
The head of the IAEA, Mohamed ElBaradei, warned that Iran risked undermining its efforts to convince the world that its nuclear intentions were peaceful.
"I think suspension is a good confidence-building measure, and Iran needs to do everything possible right now to create the confidence required," ElBaradei said Wednesday in Vienna, where the U.N. nuclear monitor's board of governors was meeting.
The agency's 35-nation board was preparing for a debate Thursday on whether Iran was living up to its pledge of full transparency on its nuclear program.
The United States, which suspects Iran is building a nuclear weapons program, wants a draft resolution on Iran to take a tough line because of evidence that it was developing this program secretly. But the Europeans want to acknowledge that Iran has made substantial steps toward openness.
The draft of the resolution said the agency noted "with the most serious concern" that Iran's declarations "did not amount to the correct, complete and final picture of Iran's past and present nuclear program." But it also praised Iran for signing an agreement that granted a free hand to IAEA inspectors.
Iran's chief delegate to the IAEA, Pirouz Hosseini, said Iran was unhappy with the draft and accused the United States of putting pressure on the Europeans.
"We have never been involved in any nuclear weapons program . . . and the Americans don't want to accept the fact," Hosseini said.
In Tehran, the Iranian capital, Foreign Minister Kamal Kharrazi accused the IAEA of failing to reciprocate.
"We take steps and expect the other side to take steps," Kharrazi said. "It can't go one-sided."
Kharrazi warned Britain, France and Germany -- whose foreign ministers visited Tehran last year to discuss the nuclear issue -- that Iran would stop cooperating with them if they failed to resist U.S. pressure at the Vienna meeting.
Kharrazi said Iran had a "legitimate right to enrich uranium" to fuel the nuclear reactor it is building to generate electrical power.
"We suspended uranium enrichment voluntarily and temporarily. Later, when our relations with the IAEA return to normal, we will definitely resume enrichment," said Kharrazi, who accused the IAEA of giving in to U.S. pressure.
"Unfortunately, the agency is sometimes influenced by the United States, while it should maintain its technical and professional identity," Kharrazi said.
The Reuters news agency reported from Vienna:
Libya signed an agreement Wednesday allowing the IAEA to conduct more intrusive inspections of nuclear facilities.
"This is a step by Libya to be clean of all nuclear weapons and weapons of mass destruction," Maatoug Mohammed Maatoug, the scientific research minister, said after signing the accord with ElBaradei.
ElBaradei said, "Libya's decision could be, and should be, a first step towards an Africa and Middle East free from weapons of mass destruction and at peace."
The protocol allows for IAEA inspectors to obtain short-notice access to any declared or undeclared sites where nuclear material may be present, in order to check for evidence of banned weapons activity.
Earlier in the day, the IAEA's governing board passed a resolution praising Libya for dismantling its nuclear weapons program.
------------------------------------------------
Getting serious about Iran
The Bush administration deserves applause for working tenaciously to focus the international spotlight on the danger posed by Iran's nuclear weapons programs. The compromise reached late Tuesday on a resolution to be considered by the International Atomic Energy Agency (IAEA) included language praising Iran's belated cooperation with investigators while criticizing Tehran's failure to resolve questions about its uranium enrichment programs. The question now is what steps the United States should take to reduce the likelihood of an Iranian nuclear breakout.
One person with some sound ideas for dealing with this danger is Henry Sokolski, executive director of the Nonproliferation Policy Education Center in Washington. Mr. Sokolski would begin by having the administration request that the IAEA's safeguards division spell out how much time and effort would be required to certify that Iran is out of the bomb-making business. Second, in preparation for the IAEA's next board meeting in June, as well as upcoming G-8 and NATO summits, Washington should lobby its European allies to adopt a host of country-neutral nonproliferation rules that would affect Iran and other aspiring nuclear powers. These rules, to put it mildly, could make life very uncomfortable for such regimes.
The allies should declare that nations cannot free themselves from their obligation to abide by the Nuclear Nonproliferation Treaty (NPT) by announcing their withdrawal unless the IAEA can clearly find them in full compliance and determines that they have dismantled all undeclared nuclear facilities. In addition, all countries should suspend nuclear cooperation with any nation that the IAEA cannot find to be in full compliance with its safeguards agreement until the agency can establish that that country is completely out of the weapons business. Civilian nuclear exports from NPT member nations that the IAEA can't find in full compliance with the NPT should be considered illegitimate.
Mr. Sokolski would ratchet up the pressure on Iran in myriad other ways. For example, the secretary of state should call for help from France, the EU and Japan to declare that they will delay making investments in Iran's oil industry "until and unless the IAEA finds Iran in full compliance or Iran has dismantled the nuclear facilities and materials it forgot to declare from the IAEA as required by its safeguards agreement with the agency."
Washington should work with its allies to prepare against the contingency of Iran using its nuclear capabilities in the future, either to threaten the Straits of Hormuz (through conventional means, including mining) or to use nuclear mines directly.
As we noted yesterday, the United States does not have the luxury of waiting. Iran has become increasingly defiant in recent weeks, demanding that the IAEA end sanctions. Washington and its allies need to confront the danger before it is too late.

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Leaker of nuke secrets curbed

By Abraham Rabinovich
THE WASHINGTON TIMES
JERUSALEM -- Nuclear whistleblower Mordecai Vanunu, who will complete his 18-year prison sentence in April for having revealed some of Israel's nuclear secrets, will be denied a passport in order to prevent him from ever leaving the country, Israel Radio reported yesterday.
The decision was said to have been made at a meeting of senior officials called by Prime Minister Ariel Sharon Tuesday night.
Mr. Sharon, however, rejected a request by the head of the Defense Ministry's security department, Yehiel Horev, to keep Vanunu locked up even after completion of his sentence. Mr. Horev asked that Vanunu be placed under administrative detention, which would permit his incarceration indefinitely without trial.
Instead, it was decided to use "certain supervisory means" to keep track of him, according to a statement by the prime minister's office. There have been unconfirmed reports that Vanunu will be kept under semi-house arrest, denied use of telephones and kept under constant guard.
Vanunu, who had worked as a minor technician at the Dimona nuclear plant, left for Australia after his dismissal from the job in 1986 and converted to Christianity. He then flew to London for interviews with the Sunday Times about the nuclear plant, where he had secretly made numerous photographs. The articles and photographs led to estimates that Israel had about 200 nuclear warheads.
The U.S. government does not acknowledge publicly that Israel has a nuclear arsenal. But in his new book, "Rumsfeld's War," Rowan Scarborough, Pentagon correspondent for The Washington Times, reveals a Defense Intelligence Agency report that says Israel has about 82 deployable nuclear bombs and missiles.
A few days before the London Sunday Times story went to press, the Israeli Mossad had a female agent lure Vanunu to Rome where he was kidnapped, sedated and transported to Israel for trial. His confinement was mostly in solitary and the only visitors he has been permitted are first-degree relatives, his lawyer and a clergyman.
Security officials have recently met with Vanunu to sound out his intentions. According to reports in the Israeli media, he refused to answer most of their questions. However, family members have said that he told them he would not leak any more information.
During his interviews with the Sunday Times he had declined to give the names of co-workers, saying he did not want to endanger them and that the information was irrelevant.
A former senior official of the Shin Bet Security Services, Haim Ben-Ami, told Israel Television on Tuesday that Vanunu might be abducted if he left the country and forced to tell all he knew.
Most of Vanunu's family is said to have severed ties with him for having abandoned the Jewish faith. However, two brothers have remained in contact. One of them, Meir, is said to be living in Australia.
Tuesday's meeting on Vanunu, chaired by Mr. Sharon, was attended by senior legal and security officials, as well as a top official of Israel's Atomic Energy Commission.

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>> SO CALLED REVOLUTION WATCH...

From Chavez, Divisive Rhetoric
Embattled Venezuelan's Bluntness Is Fuel for Recall Effort
By Jon Jeter
Washington Post Foreign Service
Thursday, March 11, 2004; Page A23
CARACAS, Venezuela -- When he addresses the nation, President Hugo Chavez sometimes breaks into song. He sermonizes his supporters and taunts his foes. In January he called Condoleezza Rice, the White House national security adviser, "a real illiterate." And last month, he used a profanity to describe President Bush, alleging Bush supported a campaign by Venezuela's political opposition to remove him. Then he issued a challenge.
"We're going to make a bet to see who lasts longer, Mr. George Bush -- you in the White House or Hugo Chavez here in Miraflores," he said, referring to Venezuela's presidential residence. He added that he would make the bet in Venezuelan currency "or in dollars, as you wish."
Chavez's policies, Venezuela's faltering economy and allegations of creeping authoritarianism are ostensibly driving the violent street protests here and the growing efforts to oust the president.
But language also divides this country. Supporters and critics of Chavez have said that the president's salty, earthy and even profane speeches are anything but presidential. While Venezuela's poor, and its black and indigenous minorities, often find Chavez's use of blunt language appealing, wealthy and middle-class Venezuelans find it boorish and embarrassing.
"When Chavez talks, it is like he is one of us," said Pablo Rosales, 53, a black cab driver here. "He is the first president I've seen who talks to the poor and not just the high class. He includes us when he talks."
Said Adriana Ruggiero, 45, a dentist: "He uses such profanity. That is not how a world leader should present himself. He is like a cave man. He makes all Venezuelans look bad."
Class is the principal fault line in Venezuelans' fractured opinion of Chavez. Recent polls indicate that Venezuela's poor, who are nearly 80 percent of the country's 25 million people, are almost evenly split on Chavez. About 41 percent of Venezuelans support Chavez, the vast majority of them poor, said Luis Vicente Leon, executive director of the national polling firm Datanalisis.
But the 59 percent of Venezuelans who disapprove of Chavez include virtually all of the country's most prosperous residents, Leon said.
"There's no doubt that Chavez's strongest support comes from those sectors of Venezuelan society who have typically been the most excluded: blacks, indigenous people and the poor," Leon said.
The son of rural teachers, Chavez has said that he has more support than the polls reflect because researchers avoid the shantytowns and poor neighborhoods where the bulk of his supporters live.
His weekly broadcast program, "Hello President," has a preacher's cadence and is peppered with slang. When the actor Danny Glover visited last month and attended a ceremony to name an elementary school for the Rev. Martin Luther King Jr., televised news accounts showed Chavez pointing to his curly hair and broad nose and saying that he, like Glover, was of African heritage.
"He speaks the language of the excluded," said Maximilien Arvelaiz, a Chavez adviser. "He doesn't just speak about the poor. He speaks to the poor."
After returning from a state visit abroad, for example, Chavez has spoken on television using a map and pointer. "He will say this is where I was and it takes X number of hours to travel there by plane from Caracas," Arvelaiz said. "For the rich and the middle class, this is all quite boring because of course they know where Spain is on the map. They think it is stupid. But poor people love this. No one has ever taken the time to explain this to them."
Julio Borges, a spokesman for the campaign to recall Chavez, acknowledges that the president has considerable charisma. But Borges said there had not been any substantial improvements in the lives of the poor since Chavez took office five years ago. Inflation is rising, the economy has lost jobs and crime in urban centers has increased, he said. "He's a demagogue," Borges said.
Elections officials last week validated only 1.8 million of the more than 3 million signatures collected by Borges and other opposition leaders in support of a referendum to recall Chavez. Constitutional provisions require that 2.4 million signatures, representing 20 percent of eligible voters, be validated.
Monitors from the Organization of American States and the Atlanta-based Carter Center said they did not see widespread fraud in the referendum process. But the National Electoral Council ruled that many of the forms were improperly completed and that signatures did not match identification numbers. Chavez said many names were of dead people.
On Wednesday, his opponents condemned the electoral council's action, saying that Chavez's allies on the panel were blocking the referendum with a complex and unfair review process, the Reuters news agency reported. The opponents, a coalition of political parties, labor leaders and civic groups, said their analysis showed that they have enough signatures to force a vote.
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>> WHITE HOUSE WATCH

President's Unfunded Mandates Criticized
Group Says States Face Huge Bills
By David S. Broder
Washington Post Staff Writer
Thursday, March 11, 2004; Page A25
It's a familiar complaint from state officials -- the charge that the federal government passes bills that voters love and then passes the buck on paying for them.
The issue, a hardy perennial in the 1990s, came back with a vengeance yesterday as the National Conference of State Legislatures, a bipartisan organization that currently has Republican leadership, assailed the Bush administration and the Republican-controlled Congress for socking the states with at least $29 billion in "unfunded mandates" in the current fiscal year.
President Bush's budget for next year will increase the burden to $34 billion, according to the report made public at a news conference beginning the NCSL's winter leadership meeting in Washington.
Accusing the federal government of "cost-shifting," Utah House Speaker Martin R. Stephens (R), president of the NCSL, said "we have seen an increase" in that practice in recent years "and we're concerned this is going to get worse."
Nine years ago, a concerted campaign by organizations representing state and local governments led to the passage by the first Republican Congress in 30 years of the Unfunded Mandates Reform Act -- a measure that ostensibly requires Washington to provide the money needed to carry out the programs it passes. But Stephens and Pennsylvania state Rep. David Steil (R), the head of the NCSL's budgets and revenue committee, said the record in recent years is one of backsliding.
The report fingered two big education programs -- the Individuals With Disabilities Education Act and Bush's landmark No Child Left Behind Act -- as creating a gap of almost $20 billion in state budgets this year.
Another major culprit, the NCSL report said, was the mandate for states to provide prescription drugs for people eligible for both Medicare and Medicaid. It put the shortfall on that program at $6 billion.
The figures are open to dispute. The Congressional Budget Office does not classify either of the big education programs as mandates, because states are not required to participate in them. But Stephens, whose legislature considered not participating in No Child Left Behind, said staying out would have cost Utah $100 million a year it had been receiving to help school low-income children.
"It's kind of a shell game to say states have a right to decide" whether to participate, Stephens said.
NCSL officials said only one piece of legislation -- an immigration bill -- was repealed after Congress determined that it had violated the unfunded-mandates law. On only three other occasions in the past nine years, the report said, has the Congressional Budget Office identified other measures that appeared to violate the statute, and none of the three was altered.
One problem, NCSL officials said, is that the 1995 law does not apply when bills are amended on the floor or changed in a House-Senate conference committee. And it does not apply to appropriations bills, which the report said often fall short of the commitments made in the underlying legislation.
NCSL officials said they hope to highlight the problem by resuming publication of a regular newsletter, the Mandate Monitor, updating the fiscal effects of legislation. They also said they would lobby members of Congress while they are in Washington.
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>> WHITE HOUSE WATCH...2

Behind the gender gap
President Bush makes overtures to women, but is largely solidifying support among men.
By Linda Feldmann | Staff writer of The Christian Science Monitor
WASHINGTON - When President Bush addressed a Cleveland forum on women's entrepreneurship this week, the visuals matched the theme - the president standing with women. But the talk's focus on jobs seemed aimed more at Ohio, a central battleground of the 2004 election and a state struggling with massive job losses, than at the female vote.
In a nation where the "gender gap" has become a permanent feature of electoral politics, Bush is finding it as difficult as most other recent GOP presidents to bring women to his side. So far this year, the Gallup Poll gap between male approval and female approval of Bush is above 7 percent - slightly higher than it was in 2001.
Bush can get away with lower support from women as long as he keeps support from men high. And that is exactly what the president seems to be doing in the early phase of the campaign: solidifying and expanding his support among men (see appearances at NASCAR and the Houston rodeo) and saving the "compassionate conservative" theme of 2000 for later in the campaign.
"Each side's in a fight now to expand their base and mobilize their base," says Democratic pollster Celinda Lake, who notes that that's why Bush adviser Karl Rove is talking less about women and more about getting the 4 1/2 million born-again Christians who didn't vote in 2000 to turn out for Bush this time. "That's why we're saying we can get unmarried women, Hispanics, and African Americans."
To be sure, the Bush campaign isn't ignoring women. First lady Laura Bush has stepped up her political activity in recent months, spearheading efforts on women's health and appearing in Bush campaign ads. The Bush administration has pushed through major reforms in education and healthcare, issues that are especially important to women. But the public prefers the Democrats' positions to the Republicans'.
Still, says independent pollster John Zogby, the gender gap under Bush isn't as big as it has been under previous presidents. "The reason is that there's a marriage gap," he says. "Married women and married men tend to see things much more similarly. They're more conservative; they have more traditional family values."
And that is why there's a move afoot to target unmarried women, a segment of the population with a low rate of participation in politics. In the 2000 election, 68 percent of married women voted, while only 52 percent of unmarried women turned out. And those nonvoters would have, on balance, helped the Democrats.
The organization Women's Voices, Women's Votes, sees across the country a vast untapped population - 22 million single women, 16 million of them unregistered - that it wants to mobilize. The group is planning outreach to these women, through television, mail, Internet, and door-to-door canvassing.
Why are these women not voting? "They don't believe the politicians care about what they have to say," says project co-director Chris Desser, her conclusion drawn from focus groups and surveys. "When we respond with, 'Well, do you know there are 22 million of you?' - their minds are blown."
These single female nonvoters are also diverse - young, old, all races, rich, poor, divorced, never-married, widowed. Thus, they are hard to define, or at least to market to the press with a pithy nickname like NASCAR dads or soccer moms. But they share some traits: As unmarried people, they tend to bear their financial burdens alone - often as the sole caretakers for children, aging parents, or both.
"Healthcare is their No. 1 concern," says Ms. Desser. "Second comes employment - job parity, consistent employment, job security. Third is education. They want to make sure their children get a decent education and a shot at the American dream. They also know how important their own education is to job security and a decent salary."
In interviews on the street, women shared concerns as they look ahead to Nov. 2. Hilda DaSilva, a divorced mother of three from Brazil, fits the profile of the unmarried women that Democrats are keen to attract - though this is the first election she's eligible to vote in, as a newly minted US citizen. "I feel like a lot of people lost their jobs," says Ms. DaSilva, who lives in Somerville, Mass. "Healthcare has gone down so badly. I love this country, I see a better life here.... [But] I don't trust [Bush]."
For Susan, a married woman in her 40s who lives in suburban Boston, the issues are the economy, jobs, and healthcare. But national security factors in as well.
"I voted for Bush, but the whole war in Iraq - at first I thought it was a good thing, and then they never found the weapons of mass destruction," she says. "And the economy has tanked. I think back to his father, and the Democrats were saying, 'Are you better off than you were four years ago?' And I don't feel like I'm better off."
* Sara B. Miller contributed to this report

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>> ASHLAND WATCH...

String of alleged terror cases in Northwest
Muslim fundraising efforts in the region draw federal indictments, and a national guardsman is in prison.
By Brad Knickerbocker | Staff writer of The Christian Science Monitor
ASHLAND, ORE. - To his friends, neighbors, and customers, Pete Seda was known for two things: his professional work as an arborist, especially his efforts to save trees that otherwise would be cut down for development, and his dedication to showing the gentle face of Islam. He was active in interfaith groups, visited grade schools, and paraded his camel on the Fourth of July in this quintessential small town.
Now the man known as Pirouz Sedaghaty when he emigrated from Iran some 30 years ago is suspected of helping a Saudi Arabia-based charity raise and launder thousands of dollars used to fund jihad (holy war).
It's part of a recent confluence of terrorism-related events in the Pacific Northwest:
* The arrest of National Guardsman Ryan Anderson, accused of offering to help Al Qaeda by providing information about US weapons and military tactics.
* The conviction of several of the so-called "Portland Seven," Muslims who tried to get to Afghanistan, where they wanted to help fight Americans.
* The investigation of members of the Muslim community associated with the University of Idaho and Washington State University, where Mr. Anderson had been a student and converted to Islam.
* The sentencing of Earnest James Ujaama, a Seattle man charged with conspiring to aid the Taliban, including plans to set up a remote terrorist training camp in the desert of Oregon.
This region has a significant number of potential terrorist targets, including aircraft carriers and ballistic-missile submarines based in Puget Sound, plus 19 major hydropower dams.
But despite occasional concerns about explosives and weapons slipped across the border from Canada, there's nothing in particular that makes the Northwest interesting to federal officials urgently hunting for terrorists and their supporters. If anything, the most radical antigovernment types here tend to be otherwise engaged: white supremacists opposed to anything having to do with other races or religions, and their politically polar opposites - anarchists concerned with economic globalization and the evils of SUVs.
But federal officials, armed with the controversial USA-Patriot Act and other statutes, have brought the antiterrorism aspects of homeland defense to the region nonetheless. Today, Ryan Anderson - who also uses the name Amir Abdul Rashid - is in a military prison at Fort Lewis in Washington State. He was arrested last month shortly before his Army unit was to leave for Iraq, charged with seeking links to Al Qaeda on the Internet, where he told his contacts, "I share your cause." Those contacts turned out to be FBI and military intelligence agents in an online sting operation. He was quickly arrested.
One thing investigators want to know is if Anderson was recruited and trained while he was a student studying Middle Eastern history at Washington State University in Pullman. Washington State and the University of Idaho are less than 10 miles apart, and they share an active Muslim community of about 200 people.
The investigation of possibly illicit fundraising with connections to terrorism began there in 2002, the year Anderson graduated. There have been several arrests since then, and in January the first of those being investigated was indicted on federal charges of fundraising and recruiting on behalf of Saudi clerics and charities allegedly supporting terrorism.
Sami Omar Al-Hussayen, a doctoral student from Saudi Arabia, is charged with providing $300,000 to Islamic charities to support "murder, maiming, kidnapping and the destruction of property." Mr. Al-Hussayen also is alleged to have connections to a member of the "Portland Seven" as well as to a branch of the Al-Haramain charity in Ashland, Ore., started and run by Mr. Seda.
"The indictment alleges that Al-Hussayen operated more than a dozen websites, including some for the Al-Haramain Islamic Foundation and two radical Saudi sheikhs," US Attorney General John Ashcroft said last week. "It further alleges that Al-Hussayen knew and intended that his computer services and expertise would be used to recruit and raise funds for violent jihad around the world and that he conspired to conceal the nature of his support for terrorists." Members of the Portland group - who tried but failed to get into Afghanistan through China - reportedly were influenced by a website managed by Al-Hussayen.
In some of these varied cases, those charged appear to have been amateurs.
Many of those donating to charities now considered to have terrorist links thought they were helping fellow Muslims such as Palestinian or Chechnyan refugees. But in the post-9/11 era, that does not lift them above the cloud of suspicion.
"We continue to pursue financiers of terrorist barbarism as aggressively as those that actually perpetrate such horrible crimes," Attorney General Ashcroft has testified before Congress.
Mr. Seda, the Ashland, Ore., arborist, has yet to be charged, although he was placed on an FBI watch list. The IRS alleges that he tried to conceal the transfer of funds, and federal officials recently took computers and video tapes from his home. For the past year, he and his family have been living in the United Arab Emirates. Through his American lawyer he says, "I am certain that once all the facts come out, it will be clear that neither [the charity he represented] nor I have engaged in any criminal activities."
The whole episode has left many here in disbelief, including Rabbi David Zaslow, who told the local newspaper that "Pete is the kind of Muslim we Americans should be standing up applauding."
"The sad irony is that Pete Seda came to the United States as a refugee from Iran in the 1970s and has been promoting peace and understanding of the Islamic faith for many years," says Paul Copeland, co-chair of the local chapter of the American Civil Liberties Union and a long-time friend of Seda.

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>>
Bodies intended for science were used in Army land-mine tests
By Cain Burdeau
Associated Press
NEW ORLEANS -- Seven cadavers donated to Tulane University's medical school were sold to the Army and blown up in land mine experiments, officials said Wednesday. Tulane said it has suspended dealings with a national distributor of donated bodies.
Tulane receives up to 150 cadavers a year from donors but needs only between 40 and 45 for classes, said Mary Bitner Anderson, co-director of the Tulane School of Medicine's Willed Body Program.
The university paid National Anatomical Service, a New York-based company that distributes bodies nationwide, less than $1,000 a body to deliver surplus cadavers, thinking they were going to medical schools in need of corpses.
The anatomical services company sold seven cadavers to the Army for between $25,000 and $30,000, said Chuck Dasey, a spokesman for the Army's Medical Research and Materiel Command in Fort Detrick, Md. The bodies were blown up in tests on protective footwear against land mines at Fort Sam Houston in San Antonio.
Tulane said it found out about the Army's use of the bodies in January 2003. It suspended its contract with the anatomical services company this month. The company did not immediately return calls for comment.
"There is a legitimate need for medical research and cadavers are one of the models that help medical researchers find out valuable information," Dasey said. "Our position is that it is a regulated process. Obviously it makes some people uncomfortable."
Cadaver remains are routinely cremated, he added.
For years military researchers have bought cadavers to use in research involving explosive devices. In the last five years, that research has been used to help determine safe standoff distances, on how to build the best shelters, and to improve helmets, Dasey said.
Michael Meyer, a philosophy professor at Santa Clara University in California who has written about the ethics of donated bodies, said the military's use is questionable because it knows donors did not expect to end up in land mine tests.
"Imagine if your mother had said all her life that she wanted her body to be used for science, and then her body was used to test land mines. I think that is disturbing, and I think there are some moral problems with deception here," Meyers said.
The market in bodies and body parts is under scrutiny after two men, including the head of the Willed Body Program at the University of California at Los Angeles, were arrested for trafficking in stolen body parts.
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>> FT ENERGY...

El Paso may face probe over reserves
By Sheila McNulty in Houston and Adrian Michaels in New York
Published: March 11 2004 22:12 | Last Updated: March 11 2004 22:12
US regulators are poised to consider a formal inquiry following El Paso's sharp downward revision of its oil and gas reserves and delayed earnings report.
The company said on Thursday that it had been supplying the Securities and Exchange Commission, the US's chief financial regulator, with details of its 41 per cent reduction in reserves.
"We have been providing information to the SEC all along, upon their request," said Aaron Woods, a spokesman. "If we receive notification from the SEC regarding a formal inquiry, we will make that information public."
The SEC does not comment on individual investigations. However, people close to the discussions said the agency was reviewing the latest moves by El Paso and considering its next steps.
Analysts expect the SEC to step up its review to a formal investigation, as it did with Royal Dutch/Shell, which is under SEC scrutiny for a 20 per cent reduction in its proven reserves. Proven reserves are the amount of oil or gas a company estimates will be recovered by a certain date.
Gordon Howald of Credit Lyonnais Securities said he had been expecting an SEC investigation since El Paso surprised the market with its announcment last month.
The revision has forced El Paso to delay the release of its fourth quarter 2003 earnings, scheduled for Thursday, as well as a 10K filing to the SEC. Analysts said that delay breaches its $3bn bank covenant, although they expected the banks to grant a waiver, which could come at a higher cost to El Paso. The company is in the process of unloading a series of assets to reduce its $24bn in debt.
Analysts say El Paso has long been seen as aggressive with its figures, noting it has sold assets that new owners booked for 25-30 per cent less than what they had been on El Paso's books.
Standard & Poor's has pushed El Paso's credit rating down to B-. "S&P considers it to be a highly speculative rating and one that is very much susceptible to default," said Todd Shipman of S&P.
Below the B- category, companies are seen to have substantial risks associated with them or actually be in default. S&P believes that rating is more likely to go down than up.
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Sibneft tycoon seeks to sell 46% stake
By Carola Hoyos and James Politi in New York and Arkady Ostrovsky in Moscow
Published: March 12 2004 0:13 | Last Updated: March 12 2004 0:13
Roman Abramovich, the Russian billionaire and owner of Chelsea football club, is in talks to sell half his 92 per cent stake in Sibneft, the Russian oil company, to a foreign energy group.
Royal Dutch/Shell, the Anglo-Dutch group, ChevronTexaco of the US, and Total of France have had discussions about a possible deal giving them a stake in Sibneft close to 46 per cent, according to oil industry bankers.
Shell is in upheaval after slashing 20 per cent of its oil and gas reserves that had been wrongly listed with the US Securities and Exchange Commission. Last week, Sir Philip Watts, the company's chairman, and Walter van de Vivjer, its head of exploration and production, were forced out.
Analysts say the possible Sibneft stake sale will be a key test of whether the management reshuffle will handicap Shell in making investment decisions that would be vital to its future growth. Buying Sibneft would help Shell catch up with its peers in Russia - such as BP, its UK rival, which has a joint venture with TNK - and add to its reserves base.
Mr Abramovich is keen to line up a buyer before he completes the unravelling of Sibneft's merger with Yukos, its bigger Russian partner.
However, a firm decision is unlikely to come before that process is complete. Any deal would also require the blessing of Vladimir Putin, Russia's president, who is expected to be re-elected on Sunday for a second term.
Analysts speculate Mr Abramovich does not yet have Mr Putin's blessing to sell a controlling stake.
It is believed that Mr Abramovich started looking for a buyer after a Moscow court ruling paved the way for unwinding the merger with Yukos. He had been trying to offload his Russian assets since last year, at a time of growing pressure on the oligarchs from the Kremlin.
Bankers said ChevronTexaco is particularly keen on acquiring a controlling stake in Sibneft and would probably push for a promise that this would eventually happen.
Total executives have said they would rather move into Russia on a project-by-project basis, but people close to the Paris-based company say they are keeping their options open with Sibneft.

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Assets of Yukos Oil's Shareholders Frozen

By Susan B. Glasser
Washington Post Foreign Service
Thursday, March 11, 2004; 1:00 PM
MOSCOW, March 11 -- Swiss authorities have frozen nearly $5 billion in personal bank accounts belonging to imprisoned Russian tycoon Mikhail Khodorkovsky and other major shareholders in his embattled Yukos oil company, Russian prosecutors announced here Thursday.
In a statement, the prosecutor general's office said the $5 billion was frozen at Russia's request, in accounts of 20 individuals "implicated in the misappropriation of particularly large amounts of state funds." It gave no details about why such a large amount was involved but said prosecutors have asked a court to allow the seizure of the frozen funds.
One of the targeted Yukos shareholders confirmed the frozen bank accounts in an interview but disputed the sum cited by Russian prosecutors. "There's never been $5 billion in these accounts," said Leonid Nevzlin, a close Khodorkovsky associate who fled prosecution here for exile in Israel.
Nevzlin, a billionaire who said his frozen account contained less than $100,000, said the prosecutors appeared to be making an inflated claim in advance of Russian presidential elections Sunday. "They're just excited before the elections, and they're going to be apologizing after the elections," he said.
President Vladimir Putin, the inevitable winner Sunday, has seen his approval ratings climb since his government launched an all-out legal assault on Yukos shareholders last year and arrested Khodorkovsky on fraud and tax evasion charges last October. Prosecutors have publicly accused Khodorkovsky and Yukos of costing the state $1 billion.
Andrea Sadecky, a spokeswoman for the Swiss attorney general, said she could not confirm or deny how much money was frozen. "We cannot speak for investigations by Russia," she said.
The Russian statement, by spokeswoman Natalya Vishnyakova, named only six of the 20 individuals whose bank accounts were blocked, including Khodorkovsky, Nevzlin and two other Yukos shareholders who have also fled to Israel to avoid prosecution. Khodorkovsky is Russia's richest man, with a net worth estimated at $15 billion by Forbes magazine.
Many investors have feared that the legal assault on Yukos could mark the start of a broader attempt to renationalize the oil company that rose, under Khodorkovsky, to become Russia's largest producer. But Vishnyakova denied that, saying the frozen funds were purely "personal cash deposits by private individuals" and not the result of "a review of privatization."
Nevzlin said that his frozen Swiss account at UBS bank had contained a token sum just for the purposes of paying off credit card bills. He said the Russian request to freeze Yukos shareholders' accounts had been made about six months ago, and that there was no way Khodorkovsky or others had kept billions of dollars there. Khodorkovsky's Swiss account, he said, "cannot exceed several million dollars."
Anton Drel, a lawyer for Khodorkovsky, said he was unaware of the Swiss action but also doubted that his client would have had such a sum in his bank account there. "They've never had close to this amount in the past" in Switzerland, Drel said. "Can you imagine them keeping $5 billion in cash?" He said that as far as he knew, Khodorkovsky had closed his personal Swiss bank account last year.
Swiss authorities revealed last week they had searched offices of several companies and seized documents in Switzerland in connection with the Yukos investigation.


---------------------------------------------

Tough targets set for China's state banks
By Mure Dickie in Beijing
Published: March 11 2004 13:43 | Last Updated: March 11 2004 20:41
China's banking regulator has set tough performance targets for two leading state lenders chosen to spearhead financial sector reform by cleaning up their books and selling shares to international investors.
However, Liu Mingkang, chairman of the China Banking Regulatory Commission, also highlighted the difficulty of dealing with the bad debt burden weighing down the nation's financial institutions.
"Our fight against non-performing loans will be long and arduous," Mr Liu said. Beijing recently injected $45bn into the Bank of China and the China Construction Bank as part of a reform effort aimed to clear the way for their listings in the next few years in Hong Kong and possibly New York.
Mr Liu said the CBRC had set strict performance targets for the banks, two of China's "big four" lenders, including achieving return on equity of 11 per cent by 2005 and 13 per cent by 2007 and return on assets of close to the "average level of the top 100 banks in the world".
And Mr Liu, a former head of the Bank of China, said efforts this year would concentrate on rooting out those responsible for "policy mistakes that caused losses", underlining Beijing's determination to ensure that senior bank officials focus on financial performance.
The two banks have already made progress in improving their balance sheets, with Bank of China cutting its non-performing loan ratio to under 16 per cent and Construction Bank reducing its NPL ratio to under 12 per cent.
Regulators say the NPL ratio for China's overall banking sector fell by 5.32 percentage points to 17.8 per cent, a dramatic improvement.
However, Mr Liu acknowledged that although the stock of bad loans was reduced, the improvement in the NPL ratio was mainly the result of rapid growth in new loans.
Some economists and officials say enthusiastic lending risks fuelling over-investment in sectors such as automaking and steel, an issue of increasing concern to government planners.
The rapid lending growth also raises the possibility that the new loans will merely add to the NPL burden in the future.
"Of the 5 percentage point fall in the NPL ratio, 4 percentage points were the result of the increase in overall lending," Mr Liu said.
"If banks cannot correctly review, judge, quantify and control the risk involved in expansion of assets, this will be a very dangerous issue," he said.
The success China's banking reform will depend largely on whether managers can adopt more market-oriented lending policies.
Some analysts say change will be difficult as the leading state banks are seen as too big to be allowed to fail, but Mr Liu stressed that Construction Bank and Bank of China should not rely on further injections of public funds.
The banks would be able to raise enough capital by issuing subordinated debts, seeking new investors or selling assets, he said.

-------------------
China vows bank reforms and stable currency
By Richard McGregor in Beijing
Published: March 11 2004 10:09 | Last Updated: March 11 2004 10:09
Zhou Xiaochuan, the governor of the People's Bank of China, said on Thursday that Beijing's efforts to relieve upward pressure on its currency through a series of monetary measures to reduce renminbi demand had begun to take effect.
The central bank head said tighter controls on lending, open market operations to soak up liquidity and allowing Chinese firms to hold greater amounts of foreign currency had helped reduce pressure on the renminbi.
"We have been able to choke the over-supply of the monetary base and the excessive growth of credit," Mr Zhou said.
Mr Zhou, who was speaking at a press conference during the annual meeting of the National People's Congress, warned that there was a "time lag" before the impact of monetary policy could be assessed, which meant that the Bank remained vigilant about the need for further measures.
China has resisted pressure from Washington to begin loosening the longstanding dollar peg for the renimbi, a policy that it believes has been a cornerstone of its economic success in recent years.
Mr Zhou continued to emphasise the benefits of "currency stabilty" on Thursday, saying it was crucial in "promoting economic development."
China's longer-term plan is to allow the renminbi to fluctuate within a wider band than its current Rmb8.3 peg to the dollar but it has given no indication to the timing of such a move.
Some foreign analysts have ambitiously forecast a revaluation as high as 10 to 15 per cent this year, but government officials have suggested that any initial policy change will be slight.
China has witnessed a surge in consumer inflation and wholesale prices recently, mainly caused by rising food and raw materials prices, which may help ease pressure on the currency by reducing the country's export competitiveness. Mr Zhou ruled out an interest rate increase this month to tackle rising prices, as he said inflation was still relatively mild.
"We have yet to adjust the interest rate this month - the reason why is, although there has been some increase of the CPI, the extent of the growth is not large enough for the adjustment," he said.
China last changed deposit and lending rates more than three years ago, in February 2001, reducing the savings rate to 1.98% for single year renminbi deposits and 5.31% for one-year renminbi loans.
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China brushes aside Intel's Wapi protest
By Mure Dickie in Beijing
Published: March 11 2004 18:10 | Last Updated: March 11 2004 18:10
The developers of a controversial Chinese standard for wireless data networks on Thursday waved aside a decision by Intel, the world's largest computer chip producer, to shun their technology.
"This could be a critical decision that Intel is making. China is such a strategic market," said an official of the state-backed group promoting China's new standard, known as Wapi. "I think Intel should calm down."
Beijing says Wapi resolves chronic security problems suffered by the popular "Wi-fi" standard for local wireless networks, and has demanded that all manufacturers selling such mobile data products in China adopt the standard by June 1.
However, Intel this week announced it would not support Wapi, saying the standard was backward and poor quality. The move throws into doubt future sales in China of computers that use Intel's wireless-enabled Centrino chips.
"If the Centrino remains what it is today, without any upgrading, it will not comply with the law so it will obviously be banned," the Chinese standards official said. "I don't see any reason why the Chinese government should retreat on this."
The dispute between standards authorities and Intel reflects a gulf in attitudes toward the new standard that may become an increasingly hot issue in trade ties between China and the US. Last week, US officials warned Beijing that Wapi would create a dangerous precedent in using technology as a trade barrier.
US electronics manufacturers fear that Wapi marks an attempt to force them to share their technology with Chinese companies, since Beijing refuses to share encryption methods at the heart of the standard directly with international manufacturers.
They also object to the need to tailor products to the Chinese market, a demand that will raise their costs while handing a competitive advantage to local rivals.
However, Chinese officials and the local companies entrusted with Wapi encryption insist that international wireless equipment manufacturers can easily abide by the new standard by developing simple software or hardware upgrades, and that there is no risk to their intellectual property.
Any halt in Chinese sales of Centrino would also have particular impact for leading local computer manufacturers such as Legend, one of the Chinese companies given access to the Wapi encryption but which uses the Centrino in many of its "Lenovo" brand laptop computers.
Legend on Thursday declined to comment.

----------------------------------------------------------------------

>> SOUTH KOREA WATCH...

S. Korea Parliament Impeaches President
By SANG-HUN CHOE
ASSOCIATED PRESS
SEOUL, South Korea (AP) -
Parliament voted to impeach President Roh Moo-hyun on illegal electioneering and incompetence charges Friday following hours of scuffles and dramatic protests.
Roh's presidential powers will be suspended while the matter is referred to the Constitutional Court for final approval to unseat the leader. The court has 180 days to rule.
The impeachment passed by a vote of 193 to 2.
The voting took place as pro-Roh lawmakers who earlier tried to block the vote were held outside the chamber by National Assembly security officers.
A shoving match was sparked earlier when pro-Roh Uri Party members tried to stop Assembly Speaker Park Kwan-yong from taking the podium, the only place he can call a vote.
Assembly security officers then moved in to begin removing lawmakers trying to block his progress. Park had warned Thursday that he might exercise his right to have security officials clear the lawmakers.


------------------------------------------------------

Fmr. Daewoo Head Kills Himself Following Roh's Comments
119 rescue forces search for the body of Nam Sang-guk, former head of Daewoo Construction. Nam committed suicide Thursday in the southern end of Hannam Bridge, after being investigated by prosecutors for allegedly giving bribes to President Roh Moo-hyun's older brother Geon-pyeong. / Yonhap
Nam Sang-guk, former Daewoo Construction head, committed suicide Thursday by jumping into the Han River. The act was committed at 12:30 p.m. near the southern end of Hannam Bridge, leading to the Olympic Expressway. Nam had recently been undergoing investigations by prosecutorssp and was charged with passing W30 million to Roh's older brother Geon-pyeong, in a request that he be reappointed as the head of Daewoo Construction last September.
President Roh said in a morning press conference at Cheong Wa Dae that Roh's older brother Geon-pyeong had approached the president with a request from Nam that he be re-appointed head of the company, but Roh had ordered Civil Affairs and the personnel office to reject the reappointment of Nam as head of the company, and made sure that Nam was not hired for the job.
Roh added, "I hope that people like the former head of Daewoo Construction, who have attended good schools and have greatly succeeded, will no longer go to small people in the countryside and pass them money for their own interests."
Before committing suicide, Nam called Mr. Shin, Daewoo Construction Judicial Affairs Manager, at 12:09 p.m. On the phone, Nam said, "I will bear everything and go. My car is parked at the southern end of the Han River, so take it later," reports Chae Dong-wook, Director of the Special Investigations 2nd Unit at the Seoul District Public Prosecutors' Office.
Shin repeated the conversation to Nam's lawyer Shin Man-seong, who called the prosecutors' office, and reported the incident to police.
The police found a gray Leganza sedan with the license plate "Seoul 30 Ma 1343," a car owned by Nam's wife, at the southern end of Hannam Bridge at 1:20 p.m. Police also found Nam's cellular phone floating in the water between the 12th and 13th piers, but were unable to find Nam's body. Search operations still continue.
Choi Jong-chang, a witness of the act, said, "I was driving my car around 12:30 p.m. when a person suddenly got out from the car in front of me and went on to the railing. I had a strange feeling and stopped for a moment. When the man jumped down, I immediately called the police."
Nam was a graduate of Seoul National University and Kyunggi High School, and entered Daewoo in 1974. A former engineer of an introvert character who spent much of the next 19 years on construction sites, Nam was promoted to executive director in 1997. As Nam did not appear to conduct public relations activities when his reappointment as head was being decided, Daewoo employees have been showing surprise at recent investigations into Nam's political lobbying activities. Daewoo Construction workers say that they "cannot believe that quiet Nam Sang-guk would give money to Roh Geon-pyeong to ensure his reappointment."
One Daewoo Construction employee who wishes to remain anonymous says that Nam was a person of "great pride and responsibility." Although the employee claims to be unsure of whether Nam, who "attended a good school and greatly succeeded," actually "went to small people in the country to pass them money for his own interests," in the words of President Roh Moo-hyun, the employee says that Nam certainly felt deeply insulted by the president's remarks.
(Youm Kang-su, ksyoum@chosun.com )

Posted by maximpost at 10:19 PM EST
Updated: Thursday, 11 March 2004 10:28 PM EST
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