[A-List] US/Saudi tensions

["Michael Keaney" <michael.keaney@xxxxxx>]

Bush Aides: Saudis Can Do More to Halt Terror Funds

By Dana Milbank and Glenn Kessler
Washington Post Staff Writers
Wednesday, November 27, 2002; Page A05

Bush administration officials yesterday praised Saudi Arabia's contributions
to the U.S. effort to cut off money to terrorists, following news reports
and criticism from congressional leaders about the kingdom's possible
involvement in financing terror.

In response to reports about growing frustration in the administration
toward Saudi Arabia, the Bush aides, while contending that they were pleased
with Saudi cooperation, said that the wealthy and influential Arab nation
could do more to stem the flow of funds to terror groups.

Secretary of State Colin L. Powell, traveling in Mexico City, told reporters
that the administration has "made it clear" that some Saudi financial
practices, such as the funding of charitable organizations that may have
links to terror, have concerned U.S. officials. But, he added, "in our
concern and in our desire to protect ourselves, we should not go to the
point where we rupture relations with a country that is a good friend of the
United States for many years and is a strategic partner."

In Washington, White House press secretary Ari Fleischer said in a briefing
that President Bush "believes that Saudi Arabia has been a good partner in
the war against terrorism. But even a good partner like Saudi Arabia can do
more. . . ."

Asked about a report in The Washington Post yesterday that a National
Security Council task force is recommending a plan to force the Saudis to
crack down on terrorist financiers, Fleischer said an NSC working group has
been exploring ideas on "how to continue the war on terrorism . . .
including the financial front."

Fleischer declined to characterize any specific recommendations the working
group had made and said recommendations have not yet been made to the
"deputy level," two levels below Bush. "The president will continue to use
every diplomatic channel to push for action by Saudi Arabia and other
nations so they continue to do everything that can be done to defeat
terrorism," the spokesman said.

The Post reported that the NSC task force is recommending a plan to force
Saudi Arabia to act against terrorist financiers or face unilateral U.S.
action against the suspects. The report quoted U.S. officials as saying the
United States would present the Saudis with evidence against individuals and
businesses suspected of aiding al Qaeda and other terrorist groups, along
with a demand that they be put out of business.

The report also said that Bush's top national security advisers had approved
the plan in concept but wanted to review its final language before it is
presented to Bush.

In contrast to Fleischer, Powell dismissed the story. "There is no substance
to those reports. I have no knowledge of any such study developing the
conclusions we should issue ultimatums or take unilateral action."

Since the Sept. 11, 2001, terror attacks, administration officials have
alternated between public shows of support for the Saudi government and
private complaints that the kingdom has not done enough to thwart terrorism
or to support U.S. military action against Iraq. Fifteen of the 19 hijackers
who carried out the strikes on New York and the Pentagon were Saudis.

The conflict flared again this weekend with reports that the FBI was
investigating whether a charitable contribution by Princess Haifa al-Faisal,
wife of Bandar bin Sultan, the Saudi ambassador to the United States, may
have indirectly benefited two of the hijackers. Some congressional leaders
followed with criticism of Saudi efforts to cut off terrorist funding.

The Saudis, as well as Powell, have strongly denied that the ambassador's
wife would knowingly support terrorists, and U.S. officials have privately
played down the idea.

The recipient of the contributions, Osama Bassnan, was quoted yesterday in
the London-based newspaper Asharq al-Awsat as saying that he did not give
the money to Omar al-Bayoumi, who knew two of the hijackers while they lived
in the San Diego area. Bassnan, now in Saudi Arabia, said the funds, which
the Saudi embassy said amounted to $2,000 per month from November 1999 to
May 2002, were for his wife's medical expenses.