MILNET:Fall 2002 Mideast Update

MILNET: Fall 2002 Mideast Update

A MILNET ANALYSIS
A leading Independent Defense & Intelligence Web-based information source in the United States

Bookmark www.milnet.com Contact milnet@milnet.com

_____________________________________________________________________________________

Selected Events since May 3, 2002 || Previous Middle East Update, May 3, 2002

Our third report of 2002 on the Middle East tries not to focus on the big headline issue of an invasion of Iraq, however, MILNET's research staff had a difficult time not adding a word about each country's stance on invasion -- primarily because it is a hot topic in the press and on the minds of Arab leaders. Our correspondents (no, we don't have more than a handful of contributors -- we are not MSNBC) have informed us that public support for invasion is nil in the streets but many government officials would love nothing better than to have a stable government in Iraq and Suddam is seen as a Loser, that is with a big L, in the long run. Invasion by the U.S. is seen to be a winning idea only if it appears the U.S. goes in and begins to win right away. Most governments are fearful of U.S. failure or the regime that follows Saddam. Most would only support U.S. action - post attack mind you -- if the U.S. and its coalition members stay in Iraq for many years to stablize the regime, and are watching the U.S. performance in aiding the stability of Afghanistan as a measure of U.S. ability to get that type of job done. A failure in Afghanistan will ensure no support post attack, wining or not.

____________________________________________________________________________________________________________

MILNET's Middle East Update, September 1, 2002

Note: On the map, Chad, Niger, Nigeria, Tunisia, European countries, and former Soviet Union States are not "live".

Middle East Updates

Bahrain Sheik Hamed ibn Isa Khalifa, the current Emir, anointed himself King of Bahrain. The country is now (supposedly) a constitutional monarchy, making if quite different then its neighbor the Kingdom of Saudi Arabia. Hamad's efforts resulted in a recent election where there were, for the first time, woman voters and woman candidates, although no women won office. Analysts are optimistic that the small country may continue on the path toward a more free society and that Hamed will be seen to be a benevolent monarch, a rare occurance in the Middle East.

Egypt Mubarak continues to condemn both Israel and Palestinians for continuing the violence. Egyptian police recently arrested 34 suspected members of the Muslim Brotherhood terrorist group, one of the largest operating in Egypt. Egypt is also cool on an attack on Iraq, perhaps taking their lead from the Arab Summit in the Spring of 2002 which had Saudi Arabia calling for more Arab solidarity with Iraq. In September, U.S. admitted it has not been able to halt missile shipments from North Korea to Egypt.

Iran Debate still continues in the media and in Congress over the President's branding of Iran as part of the axis of evil. However, events tend to support the President, with Russia aiding the Iranians to build a nuclear reactor facility, in a country whose waste natural gas venting would easily supply the power and heat for the entire country and which continues to be burned off and vented as waste. Hopes for a moderate government still wait for progress. Recent revalations that several top Al Qaeda Lieutenants are hiding out and may be operating from Iran has made hopes for timely moderate intervention in Iran seem distant. However, some hope remains as Iran moderates have been sheltering Iraqi dissidents and allowed them travel to the U.S. to discuss post-Saddam government in Iraq. Iranian NBC programs continue at a fast pace. Syria, Iran, Iraq, Lebanon, and Saudi Arabia appear to be building a pan-Arab alliance to pool aid and support for Palestinian terrorists such as Hamas and Hezbollah. See the recent MILNET and OWL OSINT report for more information. In September, U.S. admitted it has not been able to halt missile shipments from North Korea to Iran.
U.S. believes Iran is continuing to develop NBC weapons and remains under export controls. U.S. believes Iran would trade NBC weapons with terrorist organizations. There is also evidence of North Korea and Iran cooperating in MRBM and nuclear technology. Iran claims their biological and chemical weapons are for defense/deterrence only.

Iraq Iraqi air defenses continue to "lock up" on allied aircraft patrolling the no fly zones, with the usual allied response, destruction of the sites. Coalition military leaders have remarked that Iraq has quietly been shuffling air defense elements around and beefing up underground fiber optic links (supplied by Bejing). These steps may be in anticipation of U.S. attacks in the near future. Iraq's PR ability is increasing, as well as redoubled support from liberal efforts in the U.S. -- The anti-war fervor is now at an all time high since the Vietnam war in the mid 1960s. Secretary of Defense Rumsfeld has repeatedly stated very clear reasons why the U.S. classifies Iraq as a security threat to the region and Europe and U.S. -- predominatly the development of weapons of mass destruction and harboring of terrorists, and the possibility that Iraq will arm terrrorists with NBC weapons. Debate on whether pre-emptive strikes versus waiting until the danger is more present continues -- with V.P. Dick Cheney, speaking before the VFW, said the U.S. will not wait for Saddam to deliver the weapons into the hands of terrorists, not wait for information to leak out that Saddam has nuclear weapons before we act -- recalling the surprise worldwise at Indian and Pakistani nuclear weapons tests years ahead of the intelligence estimates. Meanwhile Iraq protests their innocence in the NBC development arena and vows defiantly to kill all invaders. Syria, Iran, Iraq, Lebanon, and Saudi Arabia appear to be building a pan-Arab alliance to pool aid and support for Palestinian terrorists such as Hamas and Hezbollah. See the recent MILNET and OWL OSINT report for more information.
U.S. believes that Iraq is continuing to develop NBC weapons and remains under export controls. U.S. believes Iraq would trade NBC weapons with terrorist organizations.

Israel The Israeli-Palestinian conflict continues to escalate. Today the violence is indistinguishable from open warfare. The Arab nations demonize the U.S. for providing verbal support for the Israelies and liberal voices in the U.S. casticize the admininstration for not doing enough -- when of course the problem is not solveable or aided by outside interference. Meanwhile the cycle of violence continues, with Israeli offers to withdraw, withdrawl and then resumption of suicide bombers or small arms attacks on Israeli citizens. The pattern is now quite predictable. Active still in Israel are terrorists from Hezbollah, Hamas, the Fatah Revolutionary Council (FRC) and Al Aqsa Matryrs Brigade. While having accepted the Oslo accords, PLO members were captured transporting weapons last year, thus it is not clear if PLO is "out of terrorist operations" as it claims. Israel is known to have or is able to assemble rapidly a number of nuclear weapons however their constitution prohibits sale and only allows use in defense. Israel has abundant chemical and biological weapons with their use being defined for defensive purposes only.

Jordan The son of the former King of Jordan has continued his father's steps to normalize relations with the West and act as a buffer and go-between with Arab nations. Jordan's diplomats have expressed fears that a new U.S. invasion of Iraq will result in Iraq firing missiles at Israel and that some will miss and fall into Jordan. There is economic pressure as well, every barrel of oil purchased by Iraq (according to L.A. Times reporter Michael Slackman) comes from Iraq's oil for food program and Iraq is Jordan's number 1 trading partner with the U.S. coming in second. AFI Research has published a telling analysis of the Jordanian situation in the Middle East that is worth reading. In September, Jordon and U.S. troops held a special exercise with 8000 soldiers along the Iraqi border to improve combat readiness and interoperability with Jordanian forces.

Kuwait Kuwait has slowly been reversing what some thought were promising signs of a new, more humanistic society. For instance, the introduction of non-female segragated schools and colleges is in the process of reversing. Many claim it is because conservative (fundamentalist) Muslims won't send their offspring to "radical" schools that offer same gender mixed classes. The Emir's still have been slow in bringing about other promised changes since the Gulf War, leading some to remark that the country was not worth saving -- despite the strategic interest in stopping an expanding Iraq.

Lebanon Lebanon government, under the firm control of Syria continues to support and provide refuge to Hamas, Hezbollah and Fatah terrorists. A boycott was conducted by pro-Palesinan protestors at the Beirut Starbucks, indicating a "grass roots" anti-American and anti-western movement in many Arab countries, fed by Mosque and Madrasses as well as youths encouraged by their heros in Hamas and Hezbollah. Meanwhile, Iran provides increased funding to Hezbollah camps and training via the Lebanese government, and Iraq, Saudi Arabia, and Syria are the main funds providers to Hamas via the Lebanese government and "donations" Syria, Iran, Iraq, Lebanon, and Saudi Arabia appear to be building a pan-Arab alliance to pool aid and support for Palestinian terrorists such as Hamas and Hezbollah. See the recent MILNET and OWL OSINT report for more information. In September Lebanon soldiers attacked a Fatah Revolutionary Council (FRC). U.S. Deputy Secretary of State Richard Armitage said that Hezbollah might soon become the target of anti-terrorist operations, reports Agence France-Presse. "They're on the list, their time will come, there's is no question about it," said Armitage. "All in good time we're going to go after these problems just like a high school wrestler goes out for a match: we're going to take [them] down one at a time," said Armitage, referring to the Syria-and Lebanon- backed terrorist group. Lebanon is seeking the aid of former Warsaw Pact members to upgrade its fleet of T-55 tanks, reports the Middle East Newsline. The overhaul of Lebanon's 180 T-55 tanks is needed because Beirut failed to purchase French AMX-30 tanks from its Arab allies.
MILNET believes Lebanon would purchase NBC weapons and supply them to terrorist organizations. MILNET also believes Lebanon is the source of weapons smuggled into Palestinian areas in Israel, including rockets, mortars and the explosives used by suicide bombers.

Libya Efforts have been to remove export controls with Libya since they have shown some improvement in human rights and recently agreed to turn over Lockerbie terrorist suspects. In an incredulous over-reaction, the U.N. has appointed Moyamar Khadaffi of Libya the new Human Rights Council Leader, leaving the U.S. and European members stunned into abject silence. Conservatives across the U.S. are not silent however, with most saying "That's it, no more money for the U.N." with increasing Congressional support for penalizng the U.N. following several similar votes including dropping the U.S. from key environmental posts. In September, U.S. admitted it has not been able to halt missile shipments from North Korea to Egypt.
Libya is thought to be continuing to develop NBC weapons and remains under export controls. MILNET believes Libya would supply NBC weapons to terrorist organizations.

Oman In the recent past Oman has been a friendly route for escaping middle eastern terrorists. U.S. media sources quote U.S. government officials citing Oman as a clearing house for funds ot terrorist groups including Al Qaida, even after September 11, 2001. Along with UAE and Qatar, Oman has implemented anti money laundering laws, subjecting all transactions over $10,000 to disclosure and identification. Numerous banking records have been turned over as promised. U.S. has been providing anti-terrorist and defense training, in some cases leaving behind small amounts of equipment to help Oman protect itself. However Oman has not been receptive to U.S. talks on invading Iraq.

Qatar Along with UAE and Oman, Qatar has implemented anti money laundering laws, subjecting all transactions over $10,000 to disclosure and identification. Numerous banking records have been turned over as promised. The U.S. has established at least one new staging base in Qatar, presumably to replace or augment bases in Saudi Arabia that it is expected can not be used to attack Iraq.

Saudi Arabia Crown Prince Abdullah has declared a plan for peace between Israel and Palestinains -- nothing new in the plan echoing much of the Oslo accords goals, but Saudis say they will support recognition of Israel as a nation if Israel will recognize the nation of Palestine. The Saudis have been engaged in a PR campaign on American TV attempting to soften their image, however the lack of real visible support has hurt them in the eyes of most Americans and has taken steps over the last 9 months to slowly and inexorably force the U.S. off of Saudi soil. The majority of the September 11 hijackers. This, plus the majority of Al-Qaida leadership having come from Saudi Arabia disturbs analysts worldwide. Many cite Saudi Arabia's support for the extreme, anti-western Islamic teachings which is part of the educational system that makes young men in Saudi Arabia ripe for recruitment into groups like Al Qaida. Indeed, the Saudis fund a spreading worldwide "disease" marked by these Madrasses and Mosques which teach the virulent form of Islam. Syria, Iran, Iraq, Lebanon, and Saudi Arabia appear to be building a pan-Arab alliance to pool aid and support for Palestinian terrorists such as Hamas and Hezbollah. See the recent MILNET and OWL OSINT report for more information. MILNET has also followed up with an analysis of the Saudi-U.S. relationship on the heels of the Rand Corporation report distributed to the Pentagon Defense Policy Board. A Middle East Newsline report on August 29 suggests Saudi Arabia is attempting to acquire nuclear weapons -- "Saudi officials have approached Pakistan to discuss nuclear weapons cooperation" states an internal U.S. State Department report. "Saudi Arabia does not have weapons of mass destruction. It did, however, buy long-range CSS-2 ballistic missiles from China. Very senior Saudi officials have held conversations with officials involved in the Pakistani nuclear program, and possibly with similar officials in other countries," in a report authored by former Pentagon official Anthony Cordesman

Syria New Syrian President BasharAssad, has made no real changes to his father's reign over Syria, however some dialog with the West had occurred. Exchange of ideas on how to normalize relations has occurred however no concrete action has taken place. Currently, Syria is estimated to be making upwards of half a billion dollars annually importing oil from Iraq in violation of resolutions adopted by the United Nations Security Council, to which Syria was recently elected as a non permanent member. Syria, Iran, Iraq, Lebanon, and Saudi Arabia appear to be building a pan-Arab alliance to pool aid and support for Palestinian terrorists such as Hamas and Hezbollah. See the recent MILNET and OWL OSINT report for more information. In September, U.S. admitted it has not been able to halt missile shipments from North Korea to Syria.
MILNET believes Syria would purchase NBC weapons and supply them to terrorist organizations. MILNET believes Syria's control of the Lebanese government is key in the Lebanese support of Hezbollah and Hamas mortar, rifle, rocket and suicide bomber attacks on Israel.

United Arabs
Emirate The suicide attacks on U.S. targets in September finally prompted U.A.E. officials to crack down on Al-Qaida and those funneling funds into that other terrorist organizations. Like Oman and Qatar, UAE has cooperated well in closing down money laundering and providing banking records. UAE has publicly refused to help in an attack on Iraq. An interesting financial note is that Pakistan is in debt to the UAE to the tune of some $314 million. The UAE says they consider the loans a personal matter, not governmental, and Pakistan, which is trying to sell its fourth largest bank as part of economic reforms, admits the debt is hurting the sale -- clearly a governmental issue for Pakistan.

Yemen Following the U.S.S. Cole attack, Yemen has been cooperating with U.S. Intelligence and others by sharing intelligence, as well as implementing financial tools to break up funding of terrorist cells using local banking systems. Since March 1, 2002, U.S. has been involved in the planning and execution of training Yemeni to protect their coastline. It is also thought that some equipment may be left behind as a reward for Yemini cooperation. However, Yemeni Mosques and Madrasses, funded primarily by Saudi Arabia, continue to provide virulent anti-American teaching and U.S. citizens interested in learning "pure" Islam study there. On the street, word is that recruiting to terrorist groups remains high in Yemen. Yemeni President Ali Abdullah Saleh confirmed his
government's purchase of Scud missiles from North Korea stating it was their right to purchase weapons from anyone they wished. He also chided the U.S. for attempting to interfere with the Saudi Government refering to a recent Rand Corporation report recommedation.

____________________________________________________________________________________________________________

Bahrain	Sheik Hamed ibn Isa Khalifa, the current Emir, anointed himself King of Bahrain. The country is now (supposedly) a constitutional monarchy, making if quite different then its neighbor the Kingdom of Saudi Arabia. Hamad's efforts resulted in a recent election where there were, for the first time, woman voters and woman candidates, although no women won office. Analysts are optimistic that the small country may continue on the path toward a more free society and that Hamed will be seen to be a benevolent monarch, a rare occurance in the Middle East.
Egypt	Mubarak continues to condemn both Israel and Palestinians for continuing the violence. Egyptian police recently arrested 34 suspected members of the Muslim Brotherhood terrorist group, one of the largest operating in Egypt. Egypt is also cool on an attack on Iraq, perhaps taking their lead from the Arab Summit in the Spring of 2002 which had Saudi Arabia calling for more Arab solidarity with Iraq. In September, U.S. admitted it has not been able to halt missile shipments from North Korea to Egypt.
Iran	Debate still continues in the media and in Congress over the President's branding of Iran as part of the axis of evil. However, events tend to support the President, with Russia aiding the Iranians to build a nuclear reactor facility, in a country whose waste natural gas venting would easily supply the power and heat for the entire country and which continues to be burned off and vented as waste. Hopes for a moderate government still wait for progress. Recent revalations that several top Al Qaeda Lieutenants are hiding out and may be operating from Iran has made hopes for timely moderate intervention in Iran seem distant. However, some hope remains as Iran moderates have been sheltering Iraqi dissidents and allowed them travel to the U.S. to discuss post-Saddam government in Iraq. Iranian NBC programs continue at a fast pace. Syria, Iran, Iraq, Lebanon, and Saudi Arabia appear to be building a pan-Arab alliance to pool aid and support for Palestinian terrorists such as Hamas and Hezbollah. See the recent MILNET and OWL OSINT report for more information. In September, U.S. admitted it has not been able to halt missile shipments from North Korea to Iran. U.S. believes Iran is continuing to develop NBC weapons and remains under export controls. U.S. believes Iran would trade NBC weapons with terrorist organizations. There is also evidence of North Korea and Iran cooperating in MRBM and nuclear technology. Iran claims their biological and chemical weapons are for defense/deterrence only.
Iraq	Iraqi air defenses continue to "lock up" on allied aircraft patrolling the no fly zones, with the usual allied response, destruction of the sites. Coalition military leaders have remarked that Iraq has quietly been shuffling air defense elements around and beefing up underground fiber optic links (supplied by Bejing). These steps may be in anticipation of U.S. attacks in the near future. Iraq's PR ability is increasing, as well as redoubled support from liberal efforts in the U.S. -- The anti-war fervor is now at an all time high since the Vietnam war in the mid 1960s. Secretary of Defense Rumsfeld has repeatedly stated very clear reasons why the U.S. classifies Iraq as a security threat to the region and Europe and U.S. -- predominatly the development of weapons of mass destruction and harboring of terrorists, and the possibility that Iraq will arm terrrorists with NBC weapons. Debate on whether pre-emptive strikes versus waiting until the danger is more present continues -- with V.P. Dick Cheney, speaking before the VFW, said the U.S. will not wait for Saddam to deliver the weapons into the hands of terrorists, not wait for information to leak out that Saddam has nuclear weapons before we act -- recalling the surprise worldwise at Indian and Pakistani nuclear weapons tests years ahead of the intelligence estimates. Meanwhile Iraq protests their innocence in the NBC development arena and vows defiantly to kill all invaders. Syria, Iran, Iraq, Lebanon, and Saudi Arabia appear to be building a pan-Arab alliance to pool aid and support for Palestinian terrorists such as Hamas and Hezbollah. See the recent MILNET and OWL OSINT report for more information. U.S. believes that Iraq is continuing to develop NBC weapons and remains under export controls. U.S. believes Iraq would trade NBC weapons with terrorist organizations.
Israel	The Israeli-Palestinian conflict continues to escalate. Today the violence is indistinguishable from open warfare. The Arab nations demonize the U.S. for providing verbal support for the Israelies and liberal voices in the U.S. casticize the admininstration for not doing enough -- when of course the problem is not solveable or aided by outside interference. Meanwhile the cycle of violence continues, with Israeli offers to withdraw, withdrawl and then resumption of suicide bombers or small arms attacks on Israeli citizens. The pattern is now quite predictable. Active still in Israel are terrorists from Hezbollah, Hamas, the Fatah Revolutionary Council (FRC) and Al Aqsa Matryrs Brigade. While having accepted the Oslo accords, PLO members were captured transporting weapons last year, thus it is not clear if PLO is "out of terrorist operations" as it claims. Israel is known to have or is able to assemble rapidly a number of nuclear weapons however their constitution prohibits sale and only allows use in defense. Israel has abundant chemical and biological weapons with their use being defined for defensive purposes only.
Jordan	The son of the former King of Jordan has continued his father's steps to normalize relations with the West and act as a buffer and go-between with Arab nations. Jordan's diplomats have expressed fears that a new U.S. invasion of Iraq will result in Iraq firing missiles at Israel and that some will miss and fall into Jordan. There is economic pressure as well, every barrel of oil purchased by Iraq (according to L.A. Times reporter Michael Slackman) comes from Iraq's oil for food program and Iraq is Jordan's number 1 trading partner with the U.S. coming in second. AFI Research has published a telling analysis of the Jordanian situation in the Middle East that is worth reading. In September, Jordon and U.S. troops held a special exercise with 8000 soldiers along the Iraqi border to improve combat readiness and interoperability with Jordanian forces.
Kuwait	Kuwait has slowly been reversing what some thought were promising signs of a new, more humanistic society. For instance, the introduction of non-female segragated schools and colleges is in the process of reversing. Many claim it is because conservative (fundamentalist) Muslims won't send their offspring to "radical" schools that offer same gender mixed classes. The Emir's still have been slow in bringing about other promised changes since the Gulf War, leading some to remark that the country was not worth saving -- despite the strategic interest in stopping an expanding Iraq.
Lebanon	Lebanon government, under the firm control of Syria continues to support and provide refuge to Hamas, Hezbollah and Fatah terrorists. A boycott was conducted by pro-Palesinan protestors at the Beirut Starbucks, indicating a "grass roots" anti-American and anti-western movement in many Arab countries, fed by Mosque and Madrasses as well as youths encouraged by their heros in Hamas and Hezbollah. Meanwhile, Iran provides increased funding to Hezbollah camps and training via the Lebanese government, and Iraq, Saudi Arabia, and Syria are the main funds providers to Hamas via the Lebanese government and "donations" Syria, Iran, Iraq, Lebanon, and Saudi Arabia appear to be building a pan-Arab alliance to pool aid and support for Palestinian terrorists such as Hamas and Hezbollah. See the recent MILNET and OWL OSINT report for more information. In September Lebanon soldiers attacked a Fatah Revolutionary Council (FRC). U.S. Deputy Secretary of State Richard Armitage said that Hezbollah might soon become the target of anti-terrorist operations, reports Agence France-Presse. "They're on the list, their time will come, there's is no question about it," said Armitage. "All in good time we're going to go after these problems just like a high school wrestler goes out for a match: we're going to take [them] down one at a time," said Armitage, referring to the Syria-and Lebanon- backed terrorist group. Lebanon is seeking the aid of former Warsaw Pact members to upgrade its fleet of T-55 tanks, reports the Middle East Newsline. The overhaul of Lebanon's 180 T-55 tanks is needed because Beirut failed to purchase French AMX-30 tanks from its Arab allies. MILNET believes Lebanon would purchase NBC weapons and supply them to terrorist organizations. MILNET also believes Lebanon is the source of weapons smuggled into Palestinian areas in Israel, including rockets, mortars and the explosives used by suicide bombers.
Libya	Efforts have been to remove export controls with Libya since they have shown some improvement in human rights and recently agreed to turn over Lockerbie terrorist suspects. In an incredulous over-reaction, the U.N. has appointed Moyamar Khadaffi of Libya the new Human Rights Council Leader, leaving the U.S. and European members stunned into abject silence. Conservatives across the U.S. are not silent however, with most saying "That's it, no more money for the U.N." with increasing Congressional support for penalizng the U.N. following several similar votes including dropping the U.S. from key environmental posts. In September, U.S. admitted it has not been able to halt missile shipments from North Korea to Egypt. Libya is thought to be continuing to develop NBC weapons and remains under export controls. MILNET believes Libya would supply NBC weapons to terrorist organizations.
Oman	In the recent past Oman has been a friendly route for escaping middle eastern terrorists. U.S. media sources quote U.S. government officials citing Oman as a clearing house for funds ot terrorist groups including Al Qaida, even after September 11, 2001. Along with UAE and Qatar, Oman has implemented anti money laundering laws, subjecting all transactions over $10,000 to disclosure and identification. Numerous banking records have been turned over as promised. U.S. has been providing anti-terrorist and defense training, in some cases leaving behind small amounts of equipment to help Oman protect itself. However Oman has not been receptive to U.S. talks on invading Iraq.
Qatar	Along with UAE and Oman, Qatar has implemented anti money laundering laws, subjecting all transactions over $10,000 to disclosure and identification. Numerous banking records have been turned over as promised. The U.S. has established at least one new staging base in Qatar, presumably to replace or augment bases in Saudi Arabia that it is expected can not be used to attack Iraq.
Saudi Arabia	Crown Prince Abdullah has declared a plan for peace between Israel and Palestinains -- nothing new in the plan echoing much of the Oslo accords goals, but Saudis say they will support recognition of Israel as a nation if Israel will recognize the nation of Palestine. The Saudis have been engaged in a PR campaign on American TV attempting to soften their image, however the lack of real visible support has hurt them in the eyes of most Americans and has taken steps over the last 9 months to slowly and inexorably force the U.S. off of Saudi soil. The majority of the September 11 hijackers. This, plus the majority of Al-Qaida leadership having come from Saudi Arabia disturbs analysts worldwide. Many cite Saudi Arabia's support for the extreme, anti-western Islamic teachings which is part of the educational system that makes young men in Saudi Arabia ripe for recruitment into groups like Al Qaida. Indeed, the Saudis fund a spreading worldwide "disease" marked by these Madrasses and Mosques which teach the virulent form of Islam. Syria, Iran, Iraq, Lebanon, and Saudi Arabia appear to be building a pan-Arab alliance to pool aid and support for Palestinian terrorists such as Hamas and Hezbollah. See the recent MILNET and OWL OSINT report for more information. MILNET has also followed up with an analysis of the Saudi-U.S. relationship on the heels of the Rand Corporation report distributed to the Pentagon Defense Policy Board. A Middle East Newsline report on August 29 suggests Saudi Arabia is attempting to acquire nuclear weapons -- "Saudi officials have approached Pakistan to discuss nuclear weapons cooperation" states an internal U.S. State Department report. "Saudi Arabia does not have weapons of mass destruction. It did, however, buy long-range CSS-2 ballistic missiles from China. Very senior Saudi officials have held conversations with officials involved in the Pakistani nuclear program, and possibly with similar officials in other countries," in a report authored by former Pentagon official Anthony Cordesman
Syria	New Syrian President BasharAssad, has made no real changes to his father's reign over Syria, however some dialog with the West had occurred. Exchange of ideas on how to normalize relations has occurred however no concrete action has taken place. Currently, Syria is estimated to be making upwards of half a billion dollars annually importing oil from Iraq in violation of resolutions adopted by the United Nations Security Council, to which Syria was recently elected as a non permanent member. Syria, Iran, Iraq, Lebanon, and Saudi Arabia appear to be building a pan-Arab alliance to pool aid and support for Palestinian terrorists such as Hamas and Hezbollah. See the recent MILNET and OWL OSINT report for more information. In September, U.S. admitted it has not been able to halt missile shipments from North Korea to Syria. MILNET believes Syria would purchase NBC weapons and supply them to terrorist organizations. MILNET believes Syria's control of the Lebanese government is key in the Lebanese support of Hezbollah and Hamas mortar, rifle, rocket and suicide bomber attacks on Israel.
United Arabs Emirate	The suicide attacks on U.S. targets in September finally prompted U.A.E. officials to crack down on Al-Qaida and those funneling funds into that other terrorist organizations. Like Oman and Qatar, UAE has cooperated well in closing down money laundering and providing banking records. UAE has publicly refused to help in an attack on Iraq. An interesting financial note is that Pakistan is in debt to the UAE to the tune of some $314 million. The UAE says they consider the loans a personal matter, not governmental, and Pakistan, which is trying to sell its fourth largest bank as part of economic reforms, admits the debt is hurting the sale -- clearly a governmental issue for Pakistan.
Yemen	Following the *U.S.S. Cole* attack, Yemen has been cooperating with U.S. Intelligence and others by sharing intelligence, as well as implementing financial tools to break up funding of terrorist cells using local banking systems. Since March 1, 2002, U.S. has been involved in the planning and execution of training Yemeni to protect their coastline. It is also thought that some equipment may be left behind as a reward for Yemini cooperation. However, Yemeni Mosques and Madrasses, funded primarily by Saudi Arabia, continue to provide virulent anti-American teaching and U.S. citizens interested in learning "pure" Islam study there. On the street, word is that recruiting to terrorist groups remains high in Yemen. Yemeni President Ali Abdullah Saleh confirmed his government's purchase of Scud missiles from North Korea stating it was their right to purchase weapons from anyone they wished. He also chided the U.S. for attempting to interfere with the Saudi Government refering to a recent Rand Corporation report recommedation.