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 You are in: Bureaus/Offices Reporting Directly to the Secretary > Office of the Coordinator for Counterterrorism > Releases > Country Reports on Terrorism > Country Reports on Terrorism 2006 (html format) 
Country Reports on Terrorism   -Report Home Page
Released by the Office of the Coordinator for Counterterrorism
April 30, 2007

Chapter 5 -- Terrorist Safe Havens (7120 Report)

Update of Information Originally Reported Under Section 7120(b) of the Intelligence Reform and Terrorist Prevention Act

Section 2656f(b) requires that this report include "an update of the information contained in the report required to be transmitted to Congress under Section 7120(b) of the 9/11 Commission Implementation Act." Section 7120(b) includes certain reporting requirements relating to terrorist "sanctuaries" in addition to other reporting requirements. [We have integrated the terrorist sanctuary reporting required under Section 7120(b) in the present chapter. Because the term "sanctuary" is commonly associated with places of worship, we have, for greater clarity and for consistency with the terminology used elsewhere in Country Reports on Terrorism, referred instead here to terrorist "safe havens." We interpret terrorist "safe haven" to have the same meaning as terrorist "sanctuary" for purposes of Section 7120(b).

The 7120 report includes:

  1. Terrorist Safe Havens: Strategies, Tactics, Tools for Disrupting or Eliminating Safe Havens
  2. Support for Pakistan
  3. Collaboration with Saudi Arabia
  4. Struggle of Ideas in the Islamic World
  5. Outreach through the Broadcast Media
  6. Visas for Participants in United States Programs
  7. Basic Education in Muslim Countries
  8. Economic Reform

5.1. Terrorist Safe Havens

Terrorist safe havens are defined in this report as ungoverned, under-governed, or ill-governed areas of a country and non-physical areas where terrorists that constitute a threat to U.S. national security interests are able to organize, plan, raise funds, communicate, recruit, train, and operate in relative security because of inadequate governance capacity, political will, or both. Physical safe havens provide security for terrorist leaders, allowing them to plan acts of terrorism around the world. Global communications and financial systems, especially those created by electronic infrastructure such as the internet, global media, and unregulated economic activity, further allow terrorists to carry out activities, particularly the dissemination of propaganda and misinformation, without the need for a physical safe haven. These "virtual" havens are highly mobile, difficult to track, and difficult to control, and are not based in any particular state. This part of the report, however, will not address virtual safe havens, focusing instead on physical safe havens.

Africa

Somalia. A small number of al-Qaida operatives found safe haven in East Africa, particularly Somalia, where they continued to pose a serious threat to American and allied interests in the region. Although these elements were severely disrupted at year's end as a result of Ethiopian and Somali Transitional Federal Government military actions, AQ continued to operate in Somalia and elsewhere in East Africa. Somalia remains a concern given the country's long unguarded coastline, porous borders, continued political instability, and proximity to the Arabian Peninsula all of which provide opportunities for terrorist transit and/or safe haven. AQ remains likely to make common cause with Somali extremists.

The Trans-Sahara. The Algeria based Salafist Group for Preaching and Combat (AQIM/GSPC) officially merged with al-Qaida in September, and subsequently changed its name to al-Qaida in the Islamic Maghreb (AQIM). The AQIM/GSPC continues to operate in the Trans-Sahara region, crossing difficult-to-patrol borders between Mali, Mauritania, Niger, Algeria, and Chad to recruit extremists within the region for training and terrorist operations in the Trans-Sahara, and possibly for operations outside the region. Its new alliance with Al-Qaida potentially has given it access to more resources and training.

Northern Mali served as a potential safe haven for terrorists, traffickers, and smugglers because the region's remoteness and harsh desert climate discouraged effective assertion of central government control. The al-Qaida-aligned AQIM/GSPC maintained a small-scale presence using sparsely populated areas in northern Mali as a safe haven, although the group does not maintain permanent facilities and is constantly on the move. Since a brief exchange of gunfire in April 2004, during which four Malian armed forces personnel were wounded, there have been no confrontations between the Malian military and the AQIM/GSPC. In September and October, a group of Malian Tuareg rebels, known as the Alliance for Democracy and Change (ADC), engaged in two fire-fights with the AQIM/GSPC in northern Mali. The Malian government has announced no official position on the violence between the ADC and AQIM/GSPC, nor did it attempt to confront AQIM/GSPC elements in the North or prevent their use of Malian territory in 2006.

The Government of Mauritaniaaggressively pursued AQIM/GSPC members on its territory, and several AQIM/GSPC members who attempted to infiltrate the country were arrested. In contrast with 2005, there were no terrorist attacks on Mauritanian soil. However, fighting between the AQIM/GSPC and Tuareg rebels in Northern Mali occasionally threatened the border region.

East Asia and Pacific

The Sulu/Sulawesi Seas Littoral. Southeast Asia includes a safe haven area composed of the Sulawesi Sea and Sulu Archipelago, which sit astride the maritime boundary between Indonesia, Malaysia, and the Philippines. The geography of the thousands of islands in the region makes them very difficult for authorities to monitor. The range of non-terrorist activities, both licit and illicit, that are occurring in this maritime area pose another challenge to identifying and countering the terrorist threat. Although Indonesia, Malaysia, and the Philippines have improved their efforts to control their shared maritime boundaries, the area remained difficult to control. Surveillance is partial at best, and traditional smuggling and piracy groups provided an effective cover for terrorist activities in the area, such as movement of personnel, equipment, and funds. This area represents a safe haven for the AQ-linked Jemaah Islamiya (JI) organization and the Philippine Abu Sayyaf Group (ASG).

In 2006, Malaysian authorities arrested several members of a JI support cell in Sabah, Malaysia, who were facilitating JI activities across the tri-border area. In December, the Malaysian Defense Minister/Deputy Prime Minister and his Indonesian counterpart announced an initiative to enhance bilateral police cooperation along the land border on Borneo.

  • The Southern Philippines. The Abu Sayyaf Group (ASG), responsible for multiple bombings and kidnappings throughout the southern Philippines in recent years, remained active, although weakened. Several key operatives, including ASG leader Khadaffy Janjalani and his lieutenant Abu Solaiman, were killed during a counterterrorism offensive by the Armed Forces of the Philippines. JI and ASG operatives continued to enjoy safe haven in the Southern Philippines, but sustained, effective counterterrorist field operations by Philippine military forces on key islands of the Sulu archipelago have had a marked impact on the terrorists' freedom of action. Development programs, civil-military affairs projects such as infrastructure construction, medical and dental clinics, and other measures have undermined public sympathy for terrorist groups and boosted popular support for the government.
  • Indonesia. Although Indonesia has made significant progress in weakening the JI terrorist organization, JI continues to operate in Indonesia, a geographically widespread archipelago country with porous borders and CT resource constraints. Key JI operational planner Noordin Mat Top remains on the run, although aggressively pursued by Indonesian CT authorities.

Near East Asia

Iraq. Iraq is not currently a terrorist safe haven, but terrorists, including Sunni groups like al-Qaida in Iraq (AQI), Ansar al-Islam (AI), and Ansar al-Sunna (AS), as well as Shia extremists and other groups, view Iraq as a potential safe haven and are attempting to make it a reality.

The June 7 death of AQI leader, Abu Musab al-Zarqawi, damaged the group's leadership but did not diminish attacks against Coalition Forces, Iraqi civilians and infrastructure nor did it halt overall increasing attack trends by the group and other affiliated groups. Senior Iraqi officials, including Iraqi President Talabani, traveled to Iran throughout the year encouraging the Iranian government to support Iraq's political process and to stop material support of terrorist groups and militias. Although efforts by the Iraqi government, the United States, Coalition partners, and the international community are helping to thwart the terrorists' ambitions, the battle is not over. Prospects for increasing stability in Iraq over the next year will depend on: the extent to which the Iraqi government and political leaders can establish effective national institutions that transcend sectarian or ethnic interests and, within this context, the willingness of the security forces to pursue extremist elements of all kinds; the extent to which extremists, most notably AQI, can be defeated in their attempt to foment inter-sectarian struggle between Shia and Sunnis; and the extent to which Iraq's neighbors, especially Iran and Syria, can be persuaded to stop the flow of militants and munitions across their borders.

  • Northern Iraq. The Kongra-Gel/PKK maintains an active presence in northern Iraq, from which it coordinates attacks in the predominantly ethnic Kurdish areas of southeastern Turkey and provides logistical support to forces that launch attacks into Turkey, primarily against Turkish security forces, local Turkish officials, and villagers who oppose the organization. In an effort to demonstrate further that the Iraqi government would not allow Iraq to become a safe haven for terrorist organizations, Prime Minister Nuri al-Maliki appointed the Minister of State for National Security, Shirwan al-Waeli, as the Iraq coordinator for PKK issues.

Lebanon. In accordance with UNSC Resolution 1701, the Lebanese Armed Forces (LAF) strengthened its border presence and deployed 15,000 troops to patrols in the south, establishing itself in this region for the first time in 30 years. The LAF was assisted by UNIFIL, authorized to deploy up to 15,000 international peacekeepers south of the Litani River. Also, the Internal Security Force created a special unit to combat terrorism and established branches of this unit to preempt terrorist activity in northern and central Lebanon. Despite these steps, Lebanon remains a safe haven for terrorist activities. Hizballah remains the most prominent and powerful terrorist group in Lebanon, with a strong influence among Lebanon's large Shia community. Hizballah maintains offices in Beirut and elsewhere in the country, has official liaison officers to the security services, is represented by elected deputies in parliament, and has two ministers in the cabinet (although they have suspended their participation in the government). Hizballah is still recognized by the Lebanese government as a legitimate "resistance group" and political party.

The unstable political situation in Lebanon also contributed to enabling foreign Sunni extremists with links to AQ to infiltrate Lebanon and to set up cells, including within the Palestinian refugee camps. Palestinian extremist groups also have exploited the absence of Lebanese government authority within the 12 refugee camps, which have become terrorist safe havens and LAF no-go zones. We believe that some of these groups, such as AQ-associated Asbat al-Ansar, and Fatah al-Islam, have used the safe haven within the camps to train for terrorist attacks in Lebanon proper.

See Chapter 3, State Sponsors of Terrorism, for discussions on Iran and Syria, which provide safe haven to Hizballah and Palestinian terrorist groups, and are used as safe havens by al-Qaida-linked operatives and groups.

Yemen. AQ's operational structure in Yemen has been weakened and dispersed, but concerns remain about the organization's attempts to reconstitute operational cells there. Yemen continues to increase its maritime security capabilities, but land border security along the extensive frontier with Saudi Arabia remains a problem, despite increased Yemeni-Saudi cooperation on bilateral security issues.

Southwest Asia

Afghan-Pakistan Border. Historically, Islamabad and Kabul have not exerted comprehensive control over the mountainous and sparsely populated Afghan-Pakistan border - the famed "Durand Line." Fiercely independent Pashtun and Baluch tribes straddle the border, which is routinely crossed by militants and extremists.

Pakistan. The Federally Administered Tribal Areas (FATA) of Pakistan have become a safe haven for AQ terrorists and Afghan insurgents since the fall of the Taliban in December 2001. Islamist Deobandi groups and many local tribesmen in the FATA continue to resist the government's efforts to improve governance and administrative control at the expense of longstanding local autonomy. Despite Pakistan's efforts to eliminate threats and establish effective governance in the FATA, these tribal areas continued to be terrorist safe havens and sources of instability for Pakistan and its neighbors. The government maintains approximately 80,000 troops, including Army and Frontier Corps (FC) units, along the Afghanistan border. The U.S. plans to help modernize and increase the capacity of the Frontier Corps so they can become a more effective force. The Pakistani government expects to close four Afghan refugee camps-in which terrorists and violent extremists often hide - this year. Pakistan Army and FC units have targeted and raided AQ and other militant safe havens in the FATA. The failure of the tribal leaders in the FATA to fulfill their promises to the government under the terms of the North Waziristan agreement signed in September, failed to stem insurgent infiltration into Afghanistan.

In order to increase the central government's writ in the FATA, the Government of Pakistan is implementing a comprehensive approach with three prongs: political, security, and developmental. For the political prong, Pakistan seeks to bolster effective governance by empowering local officials. For the security prong, Pakistan's objective is to increase the capacity and efficacy of local security forces. For the developmental prong, the Government of Pakistan has designed a comprehensive sustainable development plan for the region. The plan concentrates on four sectors (basic human services, natural resources, communication/ infrastructure, and economic development) and, if fully implemented, would cost $2 billion. The plan was developed with the extensive grassroots participation of all stakeholders and will provide essential economic and livelihood opportunities while upgrading and expanding social services to a population at risk for recruitment by extremist and terrorist organizations.

  • Afghanistan. The Afghan government, in concert with ISAF/NATO forces and the international community, continues efforts to build security on the Afghan side of the border. The border areas remain contested , however, with ongoing insurgent and terrorist attacks, to include al-Qaida activity. Taliban terrorist attacks, alongside with those of associated extremist movements such as Hizb-e-Islami Gulbuddin (HIG) and the Haqqani network, continued throughout Afghanistan. Taliban-sponsored insurgency, terrorism, and related narcotics cultivation remained particularly prevalent in the South and East of the country.

Western Hemisphere

Colombia Border Region. This region includes the borders between Colombia on one side, and Venezuela, Ecuador, Peru, Panama, and Brazil on the other. Rough terrain, dense forest cover, low population densities, and lack of government authority and presence in this area create an area of safe haven for insurgent and terrorist groups, including especially the Revolutionary Armed Forces of Colombia (FARC). Brazil, Ecuador, Peru, and Panama have adopted an tacit policy mix of containment and non-confrontation with Colombian narcoterrorist groups, with, however, some confrontations occurring. Much of this depends on local decisions and relations. The FARC uses remote areas in Colombia's border regions to rest and regroup, procure supplies, and stage and train for terrorist attacks. In addition, the FARC and another designated terrorist organization, the National Liberation Army (ELN) regard Venezuelan territory near the border as a safe haven and often use the area for cross-border incursions. Splinter groups of the FARC and breakaway members of another designated terrorist organization, the United Self-Defense Forces of Colombia (AUC), operate in various parts of Venezuela and are involved in drug trafficking.

The Tri-Border Area (Argentina, Brazil, and Paraguay). The United States remains concerned that Hizballah and HAMAS are using the Tri-Border area as a safe haven in which to raise funds by participating in illicit activities and soliciting donations from extremists within the sizable Muslim communities in the region and elsewhere in Argentina, Brazil, and Paraguay. Although there was no corroborated information that these or other Islamic extremist groups used the region for military-type training, or planning of terrorist operations, suspected supporters of Islamic terrorist groups, including Hizballah, take advantage of loosely regulated territory and proximity to Muslim communities in Ciudad del Este, Paraguay, and Foz do Iguacu, Brazil, to engage in illegal activity and illicit fundraising. The governments of the TBA have long been concerned with arms and drugs smuggling, document fraud, money laundering, and the manufacture and movement of contraband goods through this region. In the early 1990s, the governments established a mechanism to address these illicit activities.

Strategies, Tactics, Tools for Disrupting or Eliminating Safe Havens

Corruption, poverty, a lack of civic institutions and social services, politically repressive governments, inadequate or unjust law enforcement and legal systems are conditions terrorists exploit for recruitment, operational planning or physical safe haven. Efforts to build partner capacity and encourage states to cooperate more effectively at the local and regional level are key to denying terrorists safe haven. U.S. Ambassadors, as the President's personal representatives abroad, have a unique responsibility to bring all elements of national power to bear against the terrorist enemy. They lead interagency Country Teams that develop strategies to help host nations understand the threat and to strengthen their political will and capacity to counter it.

Defeating the terrorist enemy requires a comprehensive effort executed locally, nationally, regionally and globally. Working with partner nations, we must eliminate terrorist leadership, but incarcerating or killing terrorists will not achieve an end to terrorism. We must simultaneously eliminate terrorist safe havens, tailoring regional strategies to disaggregate terrorist networks, breaking terrorist financial, travel, communications and intelligence links. Finally, and most challenging, we must address the underlying conditions that terrorists exploit. These include geo-political issues, lack of economic opportunity and political participation, ethnic conflict, ungoverned space, or political injustice.

Regional Strategic Initiative. Building on this understanding, we have worked to develop the Regional Strategic Initiative (RSI), an effort to develop flexible regional networks of interconnected Country Teams. The State Department's Office of the Coordinator for Counterterrorism (S/CT) is working with ambassadors and interagency representatives in key terrorist theaters of operation to assess the threat and devise collaborative strategies, action plans, and policy recommendations.

The RSI is a key tool in promoting cooperation between our partners in the War on Terror - for example with Malaysia, Indonesia and the Philippines as they confront terrorist transit across the Sulawesi Sea; or among Mauritania, Algeria, Morocco, Niger, Chad, and Mali, to counter a GSPC/AQIM enemy recruiting and hiding in the desert that sits astride national borders. Terrorists are highly adaptable; defeating them requires both centralized coordination and field authority. Resources and responses must be applied in a rapid, flexible, and focused manner. The RSI helps achieve this coordinated approach.

As of December 2006, RSI strategy groups were in place for Southeast Asia, Iraq and its neighbors, the Eastern Mediterranean, the Western Mediterranean, and the Horn of Africa. These groups are chaired by Ambassadors, with interagency representatives participating. RSI programs focus on developing a common understanding of the strategic situation in a region. Using this shared perspective, networked Country Teams then identify opportunities for collaboration and pool resources not only to eliminate terrorism safe havens, but also to address the conditions that terrorists exploit for recruitment.

Terrorists operate without regard to national boundaries. To effectively counter terrorists, we are working to strengthen our regional and transnational partnerships and increasingly operate in a regional context. Denying safe haven plays a major role in undermining terrorists' capacity to operate effectively and forms a key element of U.S. counterterrorism strategy as well as the cornerstone of UN Security Council Resolution 1373, adopted in September 2001. UNSCR 1373 specifically targets terrorists' ability to move across international borders and find safe haven, to solicit and move funds, and to acquire weapons. It also calls on UN member states to enact laws criminalizing terrorist activity and support to enact such laws.

Countering Terrorism on the Economic Front

Since the terrorist attacks of September 11, 2001, the United States has acted to block funding of terrorists and their supporters and to promote international cooperation against them. On September 23, 2001, the President signed E.O. 13224, giving the United States a powerful tool to impede terrorist funding. This executive order provides a means to disrupt the financial support network for terrorists and terrorist organizations by authorizing the U.S. government to designate and block assets of foreign individuals and entities that commit, or pose a significant risk of committing, acts of terrorism. In addition, because of the pervasiveness and expansiveness of the financial base of foreign terrorists, the order authorizes the U.S. government to block the assets of individuals and entities that provide support, offer assistance to, or otherwise associate with designated terrorists and terrorist organizations. The order also covers their subsidiaries, front organizations, agents, and associates.

The Secretary of State, in consultation with the Attorney General and the Secretary of the Treasury, continues to designate Foreign Terrorist Organizations (FTOs) pursuant to Section 219 of the Immigration and Nationality Act, as amended. These designations play a critical role in the U.S. fight against terrorism and are an effective means of curtailing support for terrorist activities and pressuring groups to get out of the terrorism business. Among the consequences of such a designation, it is unlawful for U.S. citizens or any persons subject to the jurisdiction of the U.S. to provide funds or material support to a designated FTO. U.S. financial institutions are also required to freeze the funds of designated FTOs.

Executive Order and Foreign Terrorist Organization designations support U.S. efforts to curb the financing of terrorism and encourage other nations to do the same. They internationally stigmatize and isolate designated terrorist entities and individuals. They also deter donations or contributions to, and economic transactions with, named entities and individuals. In addition, they heighten public awareness and knowledge of terrorist organizations and signal to other governments U.S. concerns about named entities and individuals.

International cooperation remains fundamental to our common endeavors for the simple reason that most of the funds used to support terrorism are located outside the jurisdiction of the United States. International cooperation is essential to initiatives in fields ranging from intelligence and law enforcement coordination to targeted financial sanctions to norms and standards of financial regulation.

United Nations Security Council Resolution 1267 and successor resolutions require member states to impose financial and other sanctions on listed groups and individuals associated with Usama bin Ladin, the Taliban, or al-Qaida. In 2006, UNSCR 1735 was adopted, clarifying procedures for both listing and delisting terrorist groups and entities under 1267 in an effort to increase transparency. UNSCR 1735, also encourages member states and the 1267 Committee to update the Taliban section of the 1267 consolidated sanctions list, both by submitting additional names for inclusion on the Consolidate List of individuals and entities associated with the Taliban, especially those responsible for the recent upsurge of Taliban violence in Afghanistan, as well as considering petitions to remove listed members and/or associates no longer associated with the Taliban. In December 2006, the United States and France co-sponsored UNSCR 1730 in response to a call for improving procedures for delisting individuals and entities from the 1267 Committee's Consolidated List.

In 2006, the United States and other UN members designated a number of individuals and entities:

  • On February 8, the United States designated five individuals and four entities for their role in financing the Libya Islamic Fight Group (LIFG), an AQ affiliate known for engaging in terrorist activity in Libyan and cooperating with AQ worldwide. Abd Al-Rahman Al-Faqih, Ghuma Abd'rabbah, Abdulbaqi Mohammed Khaled, Tahir Nasuf, and Mohammed Benhammedi were designated pursuant to E.O.13224 as were the four entities Sara Properties Ltd., Meadowbrook Investments Ltd., Sanabel Relief Agency Ltd., and Ozlam Properties, Ltd. On February 7, the UN 1267 Sanctions Committee added these individuals and entities and entities to its list of individuals and entities associated with Usama bin Ladin, the Taliban, or al-Qaida.
  • On March 23, the United States designated Al-Manar, a satellite owned or controlled by the Iran-funded Hizballah terrorist network. Also designated were Al-Nour Radio and the Lebanese Media group, the parent company to both Al-Manar and Al-Nour.
  • On April 13, the United States designated four top leaders of the al-Qaida-linked Southeast Asian terrorist organization Jemaah Islamiya (JI) pursuant to E.O. 13224: Abdullah Anshori, Abu Bakar Ba'asyir, Gun Gun Rusman Gunawan, and Taufik Rifki.
  • On July 20, the United States designated Abu Sufian Al Salambai Muhammed Ahmed Abd Al-Razziq for high level ties to and support for the al-Qaida network pursuant to E.O.13224.
  • On August 4, the United States designated the Indonesian and Philippine branches of the Saudi-based International Islamic Relief Organization (IIRO) for facilitating fundraising for al-Qaida and affiliated terrorist groups pursuant to E.O. 13224. The Executive Director of the Eastern Province Branch of IIRO in Saudi Arabia, Abd Al Hamid Sulaiman Al-Mujil, was also designated for using his position to bankroll the al-Qaida network in Southeast Asia. On August 4, the UN 1267 Sanctions Committee added Abd Al Hamid Sulaiman Al-Mujil and the Philippine branch of the IIRO to its list of individuals and entities associated with Usama bin Ladin, the Taliban, or al-Qaida.
  • On August 30, the Islamic Resistance Support Organization (IRSO), a key Hizballah fund-raising organization, was designated under E.O.13224.
  • On September 7, the United States designated two financial companies and one individual that provided financial support to the Iran funded Hizballah terrorist network. Bayt al-Mal and the Yousser Company as well as Husayn al-Shami, the head of Bayt al-Mal and a senior Hizballah leader, were designated under E.O.13224.
  • On December 6, the United States designated nine individuals and two entities located in the triple frontier of Argentina, Brazil and Paraguay that provided financial and logistical support to Hizballah. Muhammad Yusuf Abdallah, Hamzi Ahmad Barakat, Hatim Ahmad Barakat, Muhammad Fayez Barakat, Muhammad Tarabain Chamas, Saleh Mahmud Fayad, Sobhi Mahmud Fayad, Ali Muhammad Kazan, and Farouk Omairi, and two businesses, Casa Hamze and Galeria Page; were designated under E.O. 13224.
  • On December 7, the United States designated five individuals under E.O.13224 for providing financial support to al-Qaida and other terrorist organizations as well as facilitating terrorist activity. Mullah Krekar, Hamed Al Ali, Jaber Al Jalamah, Mubarak Al Btahali, and Mohamed Moumou were designated. On December 7, the UN 1267 Sanctions Committee approved the request that Mohamed Moumou and Mullah Krekar be added to its list of individuals and entities associated with Usama bin Ladin, the Taliban, or al-Qaida.
  • December 12, Mohammed Al-Ghabra, a British citizen who provided material and logistical support to al-Qaida and other terrorist organizations, was added to the UN 1267 Sanctions Committee list. On December 19, the United States designated Mohammed Al-Ghabra under E.O. 13224.
  • As of December 31, 2006, the United States has designated a total of 469 individuals and entities as terrorists, their financiers, or facilitators, since 2001. The global community has frozen more than $153 million in terrorist-related assets.

Bringing Terrorists to Justice. The Rewards for Justice(RFJ) Program continues to be one of America's most valuable assets in the War on Terror. Through RFJ, the Secretary of State may offer rewards for information that prevents or successfully resolves an act of international terrorism against the United States. Rewards of up to $25 million have been authorized for information leading to the capture of Usama bin Laden and other key al-Qaida leaders. Since its inception in 1984, RFJ has paid more than $62 million to over 40 people who provided credible information. In 2006, rewards totaling $1.1 million were approved for the successful resolution of terrorist cases in Afghanistan and the Philippines. In January, the Department of State paid a reward of $500,000 to an individual who assisted U.S. authorities in resolving a terrorist case involving al-Qaida operative Habis Abdulla al-Saoub.

In January and May, two public rewards ceremonies were jointly sponsored by the U.S. Embassy in Manila and the Government of the Philippines. In January, the Department paid a reward of $100,000 to an individual who helped the Government of the Philippines bring to justice Abu Sayyaf Group member Toting Craft Hanno. In May, the Department paid rewards of $250,000 each to two persons who supported Filipino authorities in their efforts to bring Rajah Solaiman Movement leader Ahmad Santos to justice.

New initiatives included adding five new reward offers at $1 million each for key al-Qaida leaders. In June, Abu Ayyub al-Masri was added to the RFJ program upon the death of Abu Musab al-Zarqawi, the former leader of al-Qaida in Iraq. In addition, the Secretary approved a reward of up to $1 million for the American-born al-Qaida terrorist Adam Gadahn. In October, the Bureau of Diplomatic Security and the FBI conducted a joint press conference announcing the RFJ reward offer and the indictment of Gadahn on charges of treason.

Bilateral and Multilateral Efforts to Identify and Address Terrorist Safe Havens

Throughout the year, the United States worked closely with multilateral partners in numerous counterterrorist financing efforts, including the Counterterrorism Committee of the United Nations, the Egmont Group of Financial Intelligence Units, the Financial Action Task Force (FATF), the G8's Counterterrorism Assistance Group (CTAG), and international financial institutions. In addition, the United States continued its regular dialogue on terrorism finance with the European Union. Since its launch in September 2004, the dialogue has served as the framework for ongoing exchanges to promote information sharing and cooperation on FATF and on technical assistance issues.

European nations are active participants in a variety of multilateral organizations that contributed to counterterrorist efforts, including the G8, NATO, the Financial Action Task Force (FATF), the Organization for Security and Cooperation in Europe (OSCE), the International Maritime Organization (IMO), and the International Civil Aviation Organization (ICAO). The United States and its partners worked through these organizations to establish and implement best practices, build the counterterrorism capabilities of "weak but willing" states, and institutionalize the War on Terror globally. The World Bank and International Monetary Fund also have pledged to provide countries with training to increase their capacity to combat money laundering and terrorist financing.

The United Nations. The United Nations continued to devote energy to the fight against terrorism. The Security Council adopted four resolutions related to terrorism:

  • Resolution 1673, adopted in April, reauthorized and improved the mandate of the 1540 committee, which deals with nonproliferation and preventing terrorist access to WMD.
  • Resolution 1686, adopted in June, extended the mandate of the International Independent Investigation Commission and supported its intention to extend further technical assistance to the Lebanese authorities regarding their investigations in terrorist attacks in Lebanon since October 1, 2004.
  • Resolution 1699, adopted in August, endorsed and encouraged increased cooperation between the UN and INTERPOL to help facilitate the implementation of sanctions, including counterterrorism sanctions.
  • Resolution 1735, adopted in December, strengthened the current sanctions regime against the Taliban, Usama bin Laden, and al-Qaida.

The Counter-Terrorism Committee (CTC) was established by Security Council Resolution 1373 after September 11, 2001, with the goal of enhancing the ability of UN member states to combat terrorism. The Counter-Terrorism Committee's Executive Directorate (CTED), established by Resolution 1535 in 2004, became fully operational in December 2005. CTED's mandate is to enhance the Committee's ability to monitor the implementation of Resolution 1373 and to continue its capacity-building work by facilitating technical assistance to member states and promoting closer cooperation and coordination with international, regional, and sub-regional organizations. It also conducts visits in member states to assess the implementation of Resolution 1373. CTED visited ten states in 2006, and the CTC has approved another 17 visits for the future. Resolution 1624 (2005), concerning incitement to terrorism and denial of safe havens, also directs the CTC, among other things, to include implementation of Resolution 1624 (2005) in its dialogue with states. CTED is doing so in its visits to member states.

The 1267 Sanctions Committee, also established by the Security Council, maintains a list of individuals and entities associated with al-Qaida, the Taliban, and/or Usama bin Ladin who are subject to international sanctions -- assets freeze, travel ban, and arms embargo -- that member states are obligated to implement. The Committee entered into an agreement to exchange information with Interpol with the goal of better enforcing the sanctions.

In 2006, the UN General Assembly took several important steps to counterterrorism. The General Assembly negotiated and adopted three terrorism-related resolutions, 61/40, 61/86, and 61/161, and continued work on the negotiation of a Comprehensive Convention on International Terrorism. The General Assembly concluded the International Convention for the Suppression of Acts of Nuclear Terrorism in 2005, and, by July 2006, 106 states had signed this important new instrument. In September 2006, the United Nations General Assembly adopted the United Nations Global Counter-Terrorism Strategy.

Then-UN Secretary General, Kofi Annan continued to use his office to focus the international community on terrorism. He took steps to institutionalize the Counterterrorism Implementation Task Force, which brings together 23 United Nations system entities that address different aspects of terrorism. He also established a focal point within the Secretariat to help coordinate a civil society campaign to counterterrorism and suggested the creation of an informal group of UN technical assistance providers, donors and recipients to exchange information and coordinate efforts.

UN Secretariat staff of the Terrorism Prevention Branch in Vienna, Austria, continued to help countries build the legal framework necessary to become party to and implement the international counterterrorism conventions and protocols.

UN Specialized Agencies are also involved in the work of fighting terrorism. For example, the International Civil Aviation Organization adopted passport security standards, and the International Maritime Organization engaged in security-related activities designed to make it harder for terrorists to operate in the commercial shipping arena. In February, a new protocol to the 1988 Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation and a new protocol to the 1988 Protocol for the Suppression of Unlawful Acts against Fixed Platforms on the Continental Shelf opened for signature. The International Atomic Energy Agency (IAEA) launched a nuclear security action plan to combat the threat of terrorism involving nuclear and other radioactive materials. The IAEA also promoted more rigorous standards for securing radioactive sources and released the first international export control framework for radioactive sources. In February, under a global security initiative, an IAEA-supported operation safely conditioned, packaged, and shipped radioactive neutron sources from three African countries to the United States for ultimate disposition. In April, the IAEA supported the removal of potentially weapon-usable highly enriched uranium from a civilian research reactor in Uzbekistan. In July, two potentially dangerous radioactive devices were successfully secured in the Republic of Georgia. In December, the IAEA supported the return to Russia of over 200 kg of highly enriched uranium from a research reactor in Germany.

G8 Counterterrorism Actions. The Group of Eight (G8), the United States, Canada, France, Germany, Italy, Japan, Russia, and the United Kingdom, has been instrumental in developing cutting-edge counterterrorism standards and practices. These included enhanced travel document security standards, as well as strengthened controls over exports and stockpile security to mitigate the threat to airports from illicit acquisition of shoulder-fired anti-aircraft missiles (man portable air defense systems, or MANPADS).

G8 counterterrorism initiatives often have an impact well beyond the borders of G8 member states since the group actively seeks to promulgate the standards and practices it develops to international standard-setting organizations. In 2006, the G8 completed the Secure and Facilitated International Travel Initiative (SAFTI) and produced two counterterrorism-related documents for the St. Petersburg Summit.

Since 2004, G8 leaders have expressed their commitment to defending against bioterrorism. Through the work of the Bioterrorism Experts Group (BTEX), G8 efforts to counter bioterrorism include strengthening national and international biosurveillance capabilities, increasing protection of the global food supply, and improving bioterrorism response and mitigation capabilities.

Securing Critical Energy Infrastructure. At the July 2006 St. Petersburg Summit, President Bush and the other leaders of the G8 announced a plan of action to secure global critical energy infrastructures, including:

  • Defining and ranking vulnerabilities of critical energy infrastructure sites;
  • Assessing emerging and potential risks of terrorists attacks; and
  • Developing best practices for effective security across all energy sectors.

Counterterrorism Action Group (CTAG). At the June 2003 Evian Summit, G8 leaders adopted a plan to build political will and capacity to combat terrorism globally, and established the Counterterrorism Action Group (CTAG) to implement this plan. CTAG supports the UN Counter-Terrorism Committee's efforts to monitor and promote implementation of UNSCR 1373 by developing an active forum for donors to coordinate counterterrorism cooperation with, and assistance to, third countries. CTAG promotes counterterrorism by prioritizing needs, and targeting and coordinating assistance to expand counterterrorism capacity in recipient countries. CTAG also encourages all countries to meet their obligations under UNSCR 1373 and, for states party to them, the 13 international counterterrorism conventions and protocols.

Under the leadership of the rotating G8 presidency, CTAG meets three times per year with the active participation of G8 member states, the European Commission, the UN Counterterrorism Committee, and other countries and organizations. Coordination meetings hosted by the local embassy of the G8 presidency were also held among CTAG members' diplomatic missions in recipient countries.

In 2006, CTAG coordinated diplomatic, donor cooperation, and donor assistance efforts, including:

  • Cooperated with the UN Counterterrorism Committee Executive Directorate (CTED) during country visits by contributing significantly to the preparation of the visits, meeting with CTED during those visits, and monitoring the implementation by visited countries of the CTC's recommendations;
  • Facilitated universal adherence to the 13 international counterterrorism conventions and protocols by encouraging more than a dozen countries to approve unratified instruments;
  • Focused counterterrorism donor assistance on needs in the Asia-Pacific Economic Cooperation (APEC) region, especially port and maritime security gaps, in concert with APEC's Counterterrorism Task Force;
  • Coordinated donor assistance to help countries in the Asia and South America assess and improve airport security; and
  • Promoted and assisting implementation of travel security and facilitation standards and practices being developed by the G8 under its Secure and Facilitated International Travel Initiative (SAFTI).

Financial Action Task Force (FATF). Under the Department of Treasury's leadership, the United States played a strong role in developing new initiatives within FATF to meet evolving anti-money laundering and counterterrorism finance threats. The United States became a co-chair, with Italy, of the newly created International Cooperation Review Group to examine AML/CTF systemic threats and participated in major FATF studies (e.g., Trade-Based Money Laundering) and FATF mutual evaluations.

European Union (EU). The United States and the European Union's Judicial Cooperation Unit (Eurojust) agreed to improve cooperation and information exchange among investigators and prosecutors, posting a U.S. Liaison Prosecutor at Eurojust. We continue to make progress toward ratification and entry into force of the U.S. - EU Extradition and Mutual Legal Assistance Agreements between the United States and EU member states. Expert level discussions have begun on mutual recognition of the EU Authorized Economic Operator provisions and the U.S. Customs -Trade Partnership Against Terrorism. We have begun a pilot project to the Container Security Initiative for feeder ports, to increase security of goods transiting our ports, and continue to work jointly to refine our risk assessments. A pilot in Southampton under the U.S. Secure Freight Initiative should improve detection and response capabilities for high-risk container traffic.

In October, the United States and the EU concluded an interim agreement on the processing of passenger name record data. We are studying the comparability of our airport assessment programs and will continue to refine international airport security measures, as in our successful joint effort to establish a common standard for liquids in carry-on baggage.

The United States and the EU continued to improve procedures for information sharing and for proactively implementing FATF Special Recommendations, including enforcing cash declaration regulations for travelers and getting private sector financial institutions to improve implementation of asset freeze measures. We continue to exchange information and best practices in expert-level discussions. In 2006, conferences on terrorism finance and money laundering issues were held with sanctions implementers, analysts, and prosecutors and investigators. We are working on a public outreach statement on fairness and transparency in the implementation of sanctions regimes.

Organization for Security and Cooperation in Europe (OSCE). The United States worked with the OSCE to establish and implement best counterterrorism practices and help build the capacity of OSCE members. OSCE members committed themselves to becoming parties to the 13 UN terrorism conventions and protocols, to work together to modernize travel documents and shipping container security, to prevent and suppress the financing of terrorist organizations, and to implement UNSC Resolution 1540 to counter WMD (related materials and the means of delivery) proliferation. The OSCE also held two regional workshops on ICAO's minimum security standards for handling and issuance of passports, sponsored visits by ICAO and other experts to provide technical advice to requesting countries on new travel document security features, and increased OSCE countries' cooperation with Interpol in reporting lost or stolen passports. The OSCE, in conjunction with the UNODC, held its second experts workshop in 2006 on promoting legal cooperation in criminal matters as related to terrorism, which covered such issues as extradition and mutual legal assistance. The OSCE also held a conference on countering the use of the Internet for terrorist purposes.

North Atlantic Treaty Organization (NATO). The North Atlantic Treaty Organization (NATO) plays a key role in combating terrorism at the regional level in Europe. First and foremost, NATO is contributing to the War on Terror by leading security and stability operations in Afghanistan and continuing Operation Active Endeavor (OAE), a naval operation that aims to combat terrorism by monitoring maritime traffic in the Mediterranean. The Alliance is also engaged in a far-reaching transformation of its forces and capabilities to better deter and defend against 21st Century threats, including terrorism, and is working closely with partner countries and organizations to ensure interoperability of forces and broad cooperation.

Trans-Sahara Counterterrorism Partnership (TSCTP). The Trans-Sahara Counterterrorism Partnership (TSCTP) is a multi-faceted, multi-year strategy aimed at defeating terrorist organizations by strengthening regional counterterrorism capabilities, enhancing and institutionalizing cooperation among the region's security forces, promoting democratic governance, discrediting terrorist ideology, and reinforcing bilateral military ties with the United States. The overall goals are to enhance the indigenous capacities of governments in the pan-Sahel (Mauritania, Mali, Chad, and Niger, as well as Nigeria and Senegal) to confront the challenge posed by terrorist organizations in the region, and to facilitate cooperation between those countries and our Maghreb partners (Morocco, Algeria, and Tunisia) in combating terrorism. See Chapter 2, Country Reports, Africa, for further information on the TSCTP.

The African Union. The African Union (AU) has several counterterrorism legal instruments, including a Convention on Prevention and Combating of Terrorism (1999), a 2002 Protocol to the Convention, and a 2004 Plan of Action. See Chapter 2, Country Reports, Africa, for further information on the AU.

Association of Southeast Asian Nations (ASEAN) and the ASEAN Regional Forum (ARF). The United States works closely with the ten-member Association of Southeast Asian Nations (ASEAN), comprising Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam to enhance counterterrorism cooperation. In July 2006, Secretary of State Rice and her ASEAN counterparts signed the "Framework Document for the Plan of Action to Implement the ASEAN-U.S. Enhanced Partnership." The Plan of Action identifies a range of measures to strengthen cooperation on maritime security, law enforcement, border security, information sharing, suppressing illicit money transfers and terrorist financial flows, curbing the abuse of NGOs and charities, as well as on other transnational crime issues. The United States actively participates in counterterrorism-related activities of the 26-member ASEAN Regional Forum (ARF), including the annual meetings on counterterrorism and transnational crime. The United States has continued efforts to increase maritime security cooperation by co-chairing with Singapore an ARF confidence-building measure in 2005 focused on preventing and countering terrorist attacks and other unlawful acts. This event built on earlier efforts to strengthen agreement on the key elements of maritime security among participants. Subsequent events, hosted by India and Japan respectively, have focused on expanding cooperation in capacity building for maritime security. In July of 2005, ARF Foreign Ministers adopted the "Statement on Information Sharing and Intelligence Exchange and Document Integrity and Security in Enhancing Cooperation to Combat Terrorism and other Transnational Crimes" in which ministers committed to improve cooperation among participants in these areas.

Asia Pacific Economic Cooperation (APEC). The 21 member economies of APEC (Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei, Thailand, the United States, and Vietnam) are committed to creating a safe environment for the movement of goods, services, and people throughout the region. The APEC Counterterrorism Task Force (CTTF) was established in 2003 to coordinate implementation of Leaders' and Ministers' statements on counterterrorism and non-proliferation. The United States works within APEC to dismantle transnational terrorist groups and to eliminate the severe and growing danger posed by proliferation of weapons of mass destruction and their means of delivery.

In 2006, with Australian and Chilean co-sponsorship, the United States introduced the first bioterrorism/biodefense initiative in APEC to protect the food supply from deliberate contamination. The United States co-hosted an experts-level workshop in Bangkok in November to share experiences and develop best practices. APEC is also committed to bolstering regional maritime and port security, and to strengthening international non-proliferation regimes. In 2005, APEC members adopted the Framework for Secure Trade and provided capacity building to seven economies to assist with implementation of the International Ship and Port Facility Security code. APEC export control systems were strengthened through capacity building initiatives, such as the 2005 Export Control Conference for APEC Economies. APEC also ensured the safe handling of radioactive sources through an agreement to implement the International Atomic Energy Agency (IAEA) Code of Conduct and Import/Export Guidelines for Radioactive Sources by the end of 2006. Airport Security was further enhanced through APEC members' agreement to undertake Man Portable Air Defense Systems (MANPADS) Vulnerability Assessments at international airports based on ICAO or similar international guidelines. APEC enhanced travel security through improvements in travel document security standards and the launch of a pilot project to share lost and stolen passport data between Australia, New Zealand, and the United States. APEC also continues to combat terrorist financing in APEC economies through efforts to strengthen financial intelligence units.

OAS Inter-American Committee against Terrorism (CICTE). CICTE delivered more than $5 million in counterterrorism capacity-building assistance in the region. CICTE provided training to nearly 500 port and airport security officials from 29 member states to help meet the requirements of the International Maritime Organization's International Ship and Port Facility Security (ISPS) code, and the International Civil Aviation Organization's (ICAO) new air security standards. CICTE advised 15 member state governments on how to meet the requirements of UNSCR 1373, the 13 international conventions and protocols relating to terrorism, and the Inter-American Convention against Terrorism (IACAT), which complements and expands on international conventions and protocols. CICTE also organized its sixth annual regular session in Bogota, Colombia.

Three Plus One Group on Tri-Border Area Security (3+1). Argentina hosted a meeting of the 3+1 Group (Argentina, Brazil, Paraguay, and the United States) in December. Delegates highlighted the importance of early warnings among States and the immediate exchange of information to prevent and combat illegal activities, and to deny refuge to those who finance, plan, or commit acts of terrorism. In November, Brazil inaugurated a new Regional Intelligence Center, in Foz do Iguacu, dedicated to coordinating intelligence activities of the police forces of Argentina, Brazil, and Paraguay, and invited Argentina and Paraguay to send official representatives to help staff the center.

Long-Term Goals and Programs/Actions Designed to Reduce Conditions that Allow Terrorist Safe Havens to Form

The Middle East Partnership Initiative. As President Bush noted, when an "entire region sees the promise of freedom in its midst, the terrorist ideology will become more and more irrelevant, until that day when it is viewed with contempt or ignored altogether." Conversely, systems characterized by an absence of political choice, transparent governance, economic opportunities, and personal freedoms can become incubators for extremism, hate, and violence.
To this end, in 2006, the State Department's Middle East Partnership Initiative (MEPI) continued to provide tangible support to reformers in the region so democracy could spread, education could thrive, economies could grow, and women could be empowered. Working in 16 countries and the Palestinian territories, MEPI invested in programs ranging from campaign schools to civic education to an Arab businesswomen's network. Despite a difficult political environment in the region throughout the year, reformers continued to provide reasons to believe that positive change is possible for the people of the Middle East. Examples of MEPI's work with reformers include the following:

Political

  • MEPI-supported local and regional election monitors in Yemen reported a process with an absence of the violence of previous electoral contests in the country and with an opposition candidate garnering over 20 percent of the vote against the incumbent leader, a rarity in the region. Technical support also was provided to all parties contesting provincial and municipal elections on the same day;
  • MEPI-supported domestic monitors in Bahrain observed the most competitive elections in the kingdom's history with a turnout of more than 70 percent and without the opposition boycotts that undermined the last round of elections.;
  • Provided technical assistance to women candidates and voter awareness campaigns in Kuwait's first parliamentary elections through universal suffrage as Kuwait joined Oman, Bahrain, Qatar, and the UAE in enfranchising women in electoral processes;
  • Continued to provide technical assistance to parties and candidates across the region in anticipation of new rounds of municipal and parliamentary elections in 2007;
  • Strengthened the role of civil society in the democratic process by facilitating dialogue among activists, NGOs, and their respective governments within the framework of the G8's Broader Middle East and North Africa Initiative and by awarding direct grants to numerous civil society organizations across the region to advance the Freedom Agenda; and
  • Trained journalists in free and independent media techniques to support greater transparency and accountability in their countries.

Economic

  • Provided technical and other assistance in support of successfully completed free trade agreements with Bahrain and Oman; 
  • Expanded trade capacity of Arab countries with training and technical assistance; a number of Gulf countries are drafting new labor laws and updating new customs codes and agricultural import/export standards;
  • Provided entrepreneurial training for more than 300 participants, almost half of them women, from 16 Middle Eastern and North African countries, with 35 alumni going on to start or expand businesses. At least 500 new jobs have been created following their participation in MEPI programs; 
  • Extended credit and services to small- and medium-sized businesses through peer consultation and training for regional banks and financial organizations; 
  • Established self-sustaining Junior Achievement chapters in 12 countries throughout the Middle East, with more than 10,000 students participating. Created public-private partnerships that assisted in the sustainability of Junior Achievement chapters; and 
  • Expanded commercial and legal reform efforts in the Gulf by working to update legal curricula at law schools in Qatar and Oman, update commercial codes to meet international standards in Bahrain and Oman, and provide continuing education programs for the judiciary.

Education

  • Provided English language study to more than 4,500 underserved youth from 13 countries in the Middle East through a micro-scholarship program, bringing the total number of students reached with MEPI support to more than 12,000; 
  • Empowered young, highly motivated Arab men and women with leadership, problem-solving, and entrepreneurial skills through intensive five-week institutes. More than 200 students have participated, and most have started their own civic projects back home;
  • Supported a regional civic-education network that promotes youth civic awareness and involvement. Examples of resulting youth-led projects included starting after-school classes for poor students and improving health services at local hospitals. The program is being widely accepted and adopted; for example, education officials committed to adopting Project Citizen in all schools in Marrakesh, Morocco; and 
  • Promoted critical thinking and independent reading with an initiative to provide more than 80 titles of high-quality American children's books to more than 3,000 schools in three Middle Eastern countries.

Women's Empowerment

  • Strengthened the technology, business and advocacy skills of women across six Gulf nations; 
  • Established the first U.S.-Middle East Partnership for Breast Cancer Awareness and Research, which activated women across the region in private-public partnerships, civic engagement, and networking;
  • Established business network hubs in six countries, focusing on training, professional development, and information sharing on laws, business opportunities, skills, and the global economy; and 
  • Focused on women's rights, particularly family law, in three Gulf states and Morocco.

Antiterrorism Assistance Program (ATA). The Antiterrorism Assistance Program (ATA) provides partner countries with the training, equipment, and technology needed to increase their capabilities to find and arrest terrorists, and to build the kind of cooperation and interactivity between law enforcement officers that has a lasting impact.

At the operational level, ATA alumni have led the investigation of a number of recent terrorist attacks. In Indonesia, a special unit trained and equipped by DS/ATA tracked SE Asia's most wanted terrorist, Dr. Azahari. The suspect refused to give himself up and was killed along with another accomplice. Azahari and his accomplice were responsible for the Bali bombing in 2002, the J.W. Marriott attack in 2003, and the bombing of the Australian Embassy in 2004. The ATA program has also been crucial in helping local initiatives take root. In Tanzania, ATA assistance mapped out the foundation for the establishment of a counterterrorism center and the implementation of an innovative mechanism to regularly communicate with Kenyan counterparts. In Colombia, ATA financed a training facility in Sibate, which has become an international training hub for officials across the Hemisphere.

ATA sponsored 289 courses and technical consultations and trained approximately 4,816 participants from 77 countries in 2006. In its two-decade long existence, ATA has trained more than 57,116 students from 151 countries, providing programs tailored to the needs of each partner nation and to local conditions. Such training included crisis management and response, cyber terrorism, dignitary protection, bomb detection, airport security, border control, kidnap intervention and hostage negotiation and rescue, response to incidents involving weapons of mass destruction, countering terrorist finance, and interdiction of terrorist organizations. All courses emphasized law enforcement under the rule of law and respect for human rights.

Terrorist Interdiction Program (TIP). The Terrorist Interdiction Program (TIP) assisted priority countries at risk of terrorist activity to enhance their border security capabilities. TIP provided participating countries with a computerized watch listing system to identify suspect travelers at air, land, or sea ports of entry. TIP further promotes expanded cooperation and close liaison with host governments in the areas of rule of law, anticorruption, and law enforcement. Since 2001, the State Department has provided TIP assistance to more than 20 countries, assistance that was instrumental in impeding terrorist travel. Hundreds of individuals traveling on stolen passports in Pakistan, as well as wanted criminals, narcotics smugglers, and human traffickers have been identified and intercepted worldwide. The Terrorist Interdiction Program complements other counterterrorism-related U.S. Government efforts to enhance aviation, border, cyber, maritime, and transportation security.

Counterterrorist Finance Training. In response to the development of new international standards against the growing threat of illicit cash couriers and bulk cash smuggling, the State Department worked with its interagency partners to develop a training course on interdicting bulk cash smuggling. This course provided operational training to foreign customs officers, investigators, and other officials on the detection, interdiction, analysis, investigation, and seizure of illicit cross-border cash used to facilitate terrorism and criminal activities. The training, conducted in three Middle Eastern countries, emphasized the need to investigate the source, destination, and organization behind cash smuggling, and stressed FATF requirements on reporting of outbound/inbound currency and working with Financial Intelligence Units. Based on the vulnerabilities uncovered during this training, one country moved aggressively to implement new laws and regulations. Due to high demand, the State Department is planning to increase the number of courses offered and to provide this training to countries in other geographical regions.

Increasing Economic Development. Development is central to the President's National Security Strategy. Expanding the circle of prosperity is critical to our national security. Poverty, weak institutions, and corruption can turn nations of great potential into recruiting grounds for terrorists. Well-conceived targeted aid is a potential leveraging instrument that can help countries implement sound economic policies, helping to improve the conditions that terrorists exploit.

The Millennium Challenge Account, established by Congress in 2004 based on President Bush's concept, represents a new model for achieving transformational development by providing assistance to those countries that rule justly, invest in their people and encourage economic freedom. The prospect of an MCA Compact provides a powerful incentive for the poorest countries to reform. Good governance and sound policies, not foreign aid, are the keys to economic development. U.S. private sector flows to the developing world, including trade and investment ($450.2 billion in 2004), dwarf our foreign aid ($19.7 billion). Unutilized capital in developing countries, owing to weak policies and poor property rights, is estimated to be as high as $9 trillion.

Debt relief for the poorest is another element of our development strategy. Our long-standing support for the Heavily Indebted Poor Countries (HIPC) initiative, as well as for the Multilateral Debt Relief Initiative (MDRI) introduced in 2006, promotes debt sustainability, reduces the likelihood of debt distress and enables the poorest countries to devote additional resources to reducing poverty and promoting economic growth. Our aggressive multilateral and bilateral trade agenda to open agricultural and non-agricultural markets and liberalize financial services, transportation, telecommunications, and government procurement all support development.

The U.S. Agency for International Development (USAID), carries out foreign assistance programs that support key U.S. foreign policy interests and have a positive public diplomacy impact for many people in the developing world. USAID's humanitarian aid programs and its activities in the areas of economic growth, agriculture, trade, health, democracy, and conflict prevention help reduce the risk of countries becoming breeding grounds for terrorism. In Afghanistan, USAID is helping to build a safe, stable society that meets the needs of its people and eliminates an environment in which terrorist groups have flourished. USAID has been on the front lines of support to tsunami-affected countries, garnering goodwill toward the United States among people in the hardest-hit areas. Our rapid humanitarian assistance and generous reconstruction pledge in response to the devastating South Asian earthquake helped Pakistan in its hour of need, tangibly changing hearts and minds about the U.S. role in this predominately Muslim country.

5.2. Support for Pakistan

The 9/11 Commission recommended that the United States "make the difficult long-term commitment to the future of Pakistan" and "support Pakistan's government in its struggle against extremists with a comprehensive effort that extends from military aid to support for better education, so long as Pakistan's leaders remain willing to make difficult choices of their own."

Composition and Levels of Assistance, Including Security and Other Assistance

The USG commitment to a long-term relationship with Pakistan is highlighted by President Bush's pledge to Pakistani President Musharraf to seek from Congress $3 billion in Economic Support Funds (ESF) and Foreign Military Financing (FMF) for Pakistan during the five-year period from FY-2005 through FY-2009. In addition to Economic Support Funds and Foreign Military Financing, the United States Government is also providing other forms of assistance to Pakistan, including funding for Child Survival and Health (CSH), Development Assistance (DA), International Military Education and Training (IMET), International Narcotics and Law Enforcement (INCLE), Anti-Terrorism Assistance (NADR-ATA), Export Control and Border Security (NADR-EXBS), Small Arms and Light Weapons (NADR-SALW), Terrorism Interdiction Programs (NADR-TIP), Food for Peace (P.L. 480 Title I & II), and Emergency Refugee and Migration Assistance (ERMA). The chart below offers a comparison of levels:

Assistance to Pakistan

($ in millions)

Account

FY-2005

(Includes Supplemental.)

FY-2006

FY-2006

Supplemental

FY-2007

Request

FY-2008

Request

CSH

21.000

22.757

5.300

21.700

39.800

DA

29.000

26.990

10.500

29.000

18.000

ESF

297.600

296.595

40.500

350.000

382.900

FMF

298.800

297.000

-

300.000

300.000

IMET

1.885

2.037

-

2.075

2.000

INCLE

32.150

34.97

-

25.500

32.000

NADR-ATA

6.051

6.885

-

8.590

8.000

NADR-CTF

-

-

-

0.100

0.400

NADR-EXBS

1.000

0.700

-

0.600

0.500

NADR-SALW

0.500

NADR-TIP

0.900

1.000

-

1.000

0.900

P.L. 480 Title I & II

-

17.675

-

TBD

TBD

ERMA

-

0

-

-

-

IDFA

-

-

70.000

-

-

TOTAL

688.386

706.609

126.300

738.565

785.000

Approximately $706.6 million in U.S. assistance was provided to Pakistan from monies appropriated for Fiscal Year 2006. In addition, the Administration received a supplemental Fiscal Year 2006 appropriation from Congress for $126.3 million for Pakistan to meet relief needs from the devastating October 8, 2005, earthquake. The Administration requested $738.565 million in assistance for Pakistan for Fiscal Year 2007 and is requesting $785 million for Fiscal Year 2008.

The mix of U.S. assistance for Pakistan reflects the diverse ways that the U.S. Government is cooperating with Pakistan in pursuit of critical U.S. policy goals. These include prosecuting the War on Terror; countering nuclear proliferation; building a stable and democratic Afghanistan; ensuring peace and stability in South Asia through the continuation of the India-Pakistan reconciliation process; supporting Pakistan's efforts to become a modern, prosperous, democratic state; and assisting it in recovering from the October 8, 2005, earthquake.

U.S. Foreign Military Financing (FMF) funding for Pakistan is designed to enhance Pakistan's capabilities in the War on Terror; help it to better control its borders; meet its legitimate defense needs; and make Pakistan more secure so that it can more readily take the steps necessary to build a durable peace with all its neighbors-thus fostering security and stability throughout the South Asia region. FMF is being used by Pakistan to purchase helicopters, aircraft, weapons systems, munitions, and other equipment, which, inter alia, has enabled Pakistan's armed forces to operate effectively against foreign terrorists and militants in the rugged border areas along the Pakistan-Afghanistan border. The Pakistani military is continuing major military operations along that border, which to date have resulted in the capture or death of several hundred foreign terrorists and militants, at the expense of the lives of several hundred Pakistani servicemen.

International Military Education and Training (IMET) assistance for Pakistan complements Foreign Military Financing by providing training to Pakistani officers with the aim of promoting military-to-military cooperation, increased professionalism, and enhanced military interoperability between Pakistan and the United States. IMET also assists Pakistan in developing expertise and systems to more effectively manage its defense establishment; builds technical skills for better operation and maintenance of U.S.-origin equipment; and promotes military subordination to democratic civilian rule and respect for human rights. For Fiscal Year 2008, the Administration's International Military Education and Training request is $2.0 million, a slight decrease over the $2.075 million requested for Fiscal Year 2007.

Measures to Ensure that Assistance Has the Greatest Long-Term Positive Impact on the Welfare of Pakistani People and Their Ability to Cooperate Against Terror

Economic Support Funds, Development Assistance, and Child Survival and Health assistance is being used to improve the lives of ordinary Pakistanis; lay the groundwork for the country's sustained economic growth; and strengthen social, political, and economic institutions, thus alleviating the conditions that breed extremism while demonstrating that the U.S. interest in Pakistan extends beyond the War on Terror to concern for the Pakistani people as a whole. Economic Support Funds reduced Pakistan's bilateral debt to the United States by $1 billion in Fiscal Year 2003 and a further $460 million in Fiscal Year 2004. This debt reduction, together with prior comprehensive donor debt rescheduling, enabled Pakistan to reduce its total sovereign debt from 89 percent of gross domestic product in 2000 to 64 percent of gross domestic product in 2004, laying the groundwork for the implementation of economic reforms designed to stabilize its macroeconomic environment, boost economic growth, and reduce poverty.

During Fiscal Year 2007, $200 million in Economic Support Funds are being provided to the Government of Pakistan as budget support to enable the country to carry out further economic and social reforms, expand its poverty alleviation programs, and reform and expand access to public education and health care. Pakistan's use of this money is guided by the Shared Objectives agreed to with the U.S. Government.

A total of approximately $61 million in Fiscal Year 2007 Economic Support Funds and Development Assistance funds ($69 million in Fiscal Year 06) were requested to implement education reform programs in Pakistan and support the Government of Pakistan's education sector reform initiative. Pakistan's literacy rate greatly hampers its ability to develop and expand its economic base. Literacy averages 49 percent nationwide, and in Pakistan's remote tribal areas can be as low as 0.5% for women. The dearth of good public schools results in thousands of youth attending private madrassas, schools teaching only religious subjects, some of which also inculcate a radical, jihadist ideology. To tackle these problems, U.S. Government-funded education programs in Pakistan are aimed at improving the quality of education in Pakistani primary and secondary schools, especially in Baluchistan and Sindh provinces; improving early childhood education; training teachers; increasing parental and community involvement in schools, ensuring that teachers have adequate classroom materials; and promoting the development of a new generation of Pakistani leaders by providing scholarships for disadvantaged students to obtain a higher education. Adult and youth literacy education programs are targeting out-of-school youth and illiterate adult populations, with a focus on women and girls. In addition, student exchanges play a large part in our education efforts, with Pakistan's Fulbright program being the largest in the world.

Democratization is a key focus of U.S. Government assistance toward Pakistan. One of the fundamental tools for combating terrorism over the long-term is democracy. The programs include several mutually reinforcing components: legislative training to increase the effectiveness, transparency, and accountability of Pakistan's provincial and national parliaments; political party strengthening focused on identifying and training young reformers - tomorrow's political leadership; support for increased women's political participation; civil society development designed to increase the capacity of indigenous nongovernmental organizations to serve as policy watchdogs and promote human rights; and independent media training for journalists.

Pakistan trails its South Asian neighbors in almost all key health areas: maternal and infant mortality; safe, affordable family planning; and control of infectious diseases. Fiscal Year 2007 Child Survival and Health funds will be used to increase availability of maternal and child health services, especially in rural areas; to improve healthcare at the provincial and district level through better resource management; to help maintain Pakistan's low human immunodeficiency virus prevalence rate by increasing awareness; to control other infectious diseases; and to improve water and sanitation.

Throughout 2007, Economic Support Funds, Development Assistance, and Child Survival and Health will support reconstruction efforts to rebuild, furnish, and supply health and education sector infrastructure and human resource capacities; to re-establish the livelihoods of earthquake victims; to relocate displaced victims; and to train skilled and unskilled individuals in vocational training, agriculture and livestock development, asset formation, enterprise development, micro-credit, and market restoration.

The Administration is requesting $382.9 million in Economic Support Funds and $39.8 million in Child Survival and Health for Pakistan for Fiscal Year 2008, a combined increase of $51 million from its Fiscal Year 2007 request. This increase is designed to complement Musharraf's Federally Administered Tribal Areas Sustainable Development Plan to improve governance, provide security, and encourage economic development of the border area between Afghanistan and Pakistan. These funds will also help meet earthquake reconstruction needs, with a focus on rebuilding education, economic, social and health care infrastructure, including human capital, in the earthquake zone. The Administration is requesting for Fiscal Year 2008 $18 million in Development Assistance and $39.8 million in Child Survival and Health funds, a decline from the $29 requested for Development Assistance and an increase from the $21.7 requested for Child Survival and Health in Fiscal Year 2007.

International Narcotics and Law Enforcement funds for Pakistan continue to strengthen border security and enable law enforcement access to remote areas along the Pak-Afghan border - thus enhancing the country's capability to interdict traffickers in narcotics, arms, persons, and contraband, as well as terrorists. International Narcotics and Law Enforcement funds are used to reform, strengthen, and improve cooperation among Pakistan's law enforcement agencies, all of which play an important role in the War on Terror. International Narcotics and Law Enforcement funds support a counternarcotics Air Wing based in Quetta, Baluchistan, operated by Pakistan's Interior Ministry, which includes fixed-wing surveillance aircraft and Huey II helicopters. International Narcotics and Law Enforcement funds are used to procure vehicles and communications, surveillance, and related equipment for border control and counter-narcotics activities. Border security roads that facilitate law enforcement access to inaccessible parts of Pakistan's Federally Administered Tribal Areas are also funded by International Narcotics and Law Enforcement, as are an Automated Fingerprint Identification System and National Criminal Database, and training and equipment to expand law enforcement investigative skills and forensic capacities. In tackling poppy cultivation, International Narcotics and Law Enforcement funds also support crop control, alternative livelihood, and demand reduction programs.

Nonproliferation, Anti-terrorism, Demining, and Related Programs/Export Control and Related Border Security assistance strengthens Pakistan's export control system and thus prevents weapons of mass destruction and related technology transfers that raise proliferation concerns. Nonproliferation, Anti-terrorism, Demining, and Related Programs/Export Control and Related Border Security funds are used for nonproliferation export control training addressing legal/regulatory reform, export licensing systems, and customs enforcement; for general inspection and weapons of mass destruction detection training for border control personnel; and for procuring specialized radiation/chemical-detection equipment. The Administration's $500,000 Fiscal Year 2008 request in Nonproliferation, Anti-terrorism, Demining, and Related Programs/Export Control and Related Border Security assistance represents a slight decrease from the $600,000 requested for Fiscal Year 2007.

Nonproliferation, Anti-terrorism, Demining, and Related Programs/Anti-terrorism Assistance funding for Pakistan enhances the capabilities of elite national police units responsible for counterterrorism investigations and tactical operations. Nonproliferation, Anti-terrorism, Demining, and Related Programs/Anti-terrorism Assistance trained the Special Investigation Group and crisis response teams that were integral in making arrests after the December 2003 assassination attempts on President Musharraf and the May 2004 car bombs near the U.S Consulate in Karachi. The Administration's Fiscal Year 2008 request of $8 million for Nonproliferation, Anti-terrorism, Demining, and Related Programs/Anti-terrorism Assistance represents a decrease from the $8.59 million requested in Fiscal Year 2007.

Nonproliferation, Anti-terrorism, Demining, and Related Programs/Terrorism Interdiction Programs funding for Pakistan is being used to support the Personal Identification Secure Comparison Evaluation System automated border control system, including to sustain ongoing program operations and to expand coverage to additional Pakistani ports-of-entry. The Administration is requesting $900,000 in Nonproliferation, Anti-terrorism, Demining, and Related Programs/Terrorism Interdiction Programs funds for Pakistan for Fiscal Year 2008, a slight decrease from the $1 million requested for Fiscal Year 2007.

The Administration is requesting $400,000 in Nonproliferation, Anti-terrorism, Demining, and Related Programs/Counter-Terrorism Finance funds for Fiscal Year 2008, an increase from the $100,000 requested in Fiscal Year 2007, to support assignment of a resident legal advisor to U.S. Embassy Islamabad. The legal advisor will assist the Pakistani government in establishing the counter-terrorist finance infrastructure needed to prevent money flows to terrorist groups.

Measures to Alleviate Difficulties, Misunderstandings, and Complications in U.S.-Pakistani Relations

The United States and Pakistan engage in extensive consultations to ensure that U.S. foreign assistance has the greatest long-term benefit for Pakistanis and also enhances the country's ability to cooperate in the global War on Terror. This is exemplified by the annual consultations that result in mutually-agreed Shared Objectives for the Government of Pakistan's use of $200 million in Economic Support Funds in direct budget support. The United States also participates in the annual Pakistan Development Forum, which brings together the Government of Pakistan and bilateral and multilateral donors to discuss Pakistan's development priorities and assistance needs. The United States holds regular consultations with major donors, including the European Union, Japan, and World Bank, to ensure that assistance to Pakistan is effectively coordinated and that its impact is maximized.

U.S. public diplomacy programs in Pakistan play a critical role in improving mutual understanding; garnering Pakistani support for United States policies; supporting Pakistani reforms; and laying the foundation for a stable, productive, long-term U.S.-Pakistan relationship. U.S. public diplomacy efforts include: people-to-people exchanges to bring Pakistani students, journalists, academics, politicians, and other opinion leaders to the U.S. for academic programs and study tours; placement of articles and opinion pieces in the Pakistani media and interaction with Pakistani journalists to explain U.S. policies; and public speeches and appearances by the U.S. Ambassador to Pakistan, other U.S. mission staff, and American exchange visitors.

5.3. Collaboration with Saudi Arabia

Steps to Institutionalize and Make More Transparent Government-to-Government Relations

The U.S.-Saudi Strategic Dialogue, inaugurated in November 2005 by Secretary Rice and Foreign Minister Saud al-Faisal and reporting to President Bush and King Abdullah, continues to be the highest level institutionalized forum for coordinating U.S. and Saudi interests. The Strategic Dialogue consists of six working groups focusing on human development, economy, energy, consular affairs, military cooperation, and counterterrorism. These Strategic Dialogue working groups meet periodically to address issues ranging from reform to human rights to visas to child custody cases to security cooperation. Ministerial-level meetings, dealing with bilateral issues of strategic importance, are held as part of the Strategic Dialogue.

Intelligence and Security Cooperation in the Fight against Islamic Terrorism

The United States and Saudi Arabia have an ongoing and robust dialogue on a full range of counterterrorism issues, including regular high-level discussions and close working-level collaboration. Saudi cooperation in this area is significant, and U.S. law enforcement and intelligence agencies have benefited and continue to benefit greatly from Saudi information and intelligence on individuals and organizations. U.S. law enforcement agencies have provided counterterrorism training to Saudi security services in both Saudi Arabia and in the United States. We hope to continue to build upon past cooperation and training through additional CT initiatives.

In 2006, Saudi Arabia improved its capabilities to disrupt terrorist organizations and operations and attempted to preempt the resurgence of al-Qaida and any potential attacks. Since May 2003, the Saudi government has killed or captured al-Qaida's operational Saudi-based senior leadership, as well as almost all of the network's key operatives and many of the Kingdom's most wanted individuals. Saudi security forces killed or captured within four months all of the members of the al-Qaida cell that conducted the February 2006 attack on Aramco's Abqaiq facility. On August 21, five wanted terrorists surrendered in response to government assurances in the media that they would receive mitigated sentences. The Saudi government continues to arrest individuals associated with terrorism, including nascent operational cells and members of facilitation networks for terrorist groups in Iraq and South Asia, including al-Qaida.

In November 2006, the Saudi government announced that security forces had captured 136 known or suspected terrorists or those who supported terrorist networks during the previous three months, continuing a trend in which hundreds of terrorist suspects have been killed or captured since 2003. However, the United States continues to urge Saudi Arabia to take action against additional key terrorist financiers and facilitators in the Kingdom. The U.S. and Saudi Arabian cooperation on designations in the UN 1267 Committee has also been good. The Saudi Arabian Monetary Authority circulates to all financial institutions under its supervision the names of suspected terrorists and terrorist organizations on the UNSCR 1267 Sanctions Committee's consolidated list.

Saudi Contribution to Stability in the Middle East and Islamic World, Including the Middle East Peace Process, by Eliminating Support for Extremist Groups

Saudi Arabia was one of the first countries to condemn the September 11 attacks and provided key logistical support to U.S. forces in Afghanistan. Saudi Arabia has been an important partner in the War on Terror, particularly since the onset of the al-Qaida-sponsored terror campaign inside the Kingdom in 2003. Saudi Arabia also has strengthened its border controls and security and, in particular, its border with Iraq. These efforts have hampered the flow of terrorists and weapons across the border.

The United States and Saudi Arabia have worked closely to combat extremist groups and tendencies in Saudi Arabia. The government continued its wide-ranging re-education and training program that requires all government-sponsored religious leaders to attend courses designed to eliminate extremist ideology from mosques. Those who fail to abide by government directives have been fired or reassigned. Several religious leaders were fired or subjected to punitive action for failure to abide by government instructions to avoid provocative speeches against non-Muslims and non-Sunni Muslims. In previous years in some mosques, a second preacher would appear after the main preacher during the Friday prayer and speak provocatively against Americans, Jews, or non-orthodox Muslims. This practice is less prevalent now, due in large part to the government's efforts to combat extremism in the mosques.

In the cultural arena, official visits by a number of U.S. officials, including Ambassador-at-Large for International Religious Freedom John Hanford, highlighted the government's efforts to remove references in textbooks that promote hatred towards non-Muslims and Muslims of different sects. Senior Saudi officials have acknowledged the need to combat extremism by addressing comprehensive education reform. In November 2006, the King Abdul Aziz Center for National Dialogue held the Sixth National Dialogue Forum in Al-Jawf called "Education: Reality and Promises." The Dialogue produced a "road map" for educational reform, including revision of textbooks, curricula, and teaching methods to promote tolerance. The government also initiated the National Campaign to Counter Terrorism, which includes publications, lectures, and workshops intended to educate school-age girls and boys about the evils of terrorism. Additionally, The Ministry of Education recently issued a new regulation that allows only Ministry-approved summer camps to operate.

Political and Economic Reform in Saudi Arabia and Throughout the Islamic World

Since 2005, Saudi Arabia has taken incremental steps toward political reform through holding municipal city council elections and allowing women to both vote in and compete for seats in chamber of commerce elections and the Saudi Engineer's Council. The United States welcomed the municipal elections as an opportunity to increase citizen participation in government and to increase government accountability. However, in the future the United States hopes to see the inclusion of women in the municipal elections, further expansion of citizen participation in politics, and the development of independent political and civil society institutions.

In 2006, there was also greater involvement in government activities by the Majlis Al-Shura (the Consultative Council) and the 178 municipal councils. Despite increased public and media discourse about human rights, the overall human rights environment remained poor.

The United States sponsors a variety of initiatives focused on increasing freedom and opportunity for Saudi citizens, including the Middle East Partnership Initiative (MEPI), support to the Middle East Democracy Assistance Dialogue and the Broader Middle East and North Africa (BMENA) Civil Society Dialogue, and a broad variety of public diplomacy educational, exchange, and outreach programs of the State Department's Bureaus of Educational and Cultural Affairs and International Information Programs. With MEPI support, Junior Achievement International--a program to educate youth on the benefits of free enterprise, business, and economics--will focus on opening a new chapter in Saudi Arabia this summer. MEPI also is supporting the creation of a women's business hub in the kingdom to expand the participation and variety of economic opportunities for women.

Higher oil prices bolstered the Saudi economy in 2006, resulting in a budget surplus of roughly $71 billion. In addition to reducing the national debt, Saudi Arabia is re-investing much of the surplus revenue in ambitious social development and massive infrastructure projects. The government also has supported investments to diversify the economy away from petroleum and the petrochemical industry. Saudi Arabia's accession to the World Trade Organization in December 2005 strengthened the Kingdom's ability to attract foreign investment.

Ways to Promote Greater Tolerance and Respect for Cultural and Religious Diversity in Saudi Arabia and Throughout the Islamic World

In November 2006, the Secretary of State designated Saudi Arabia a "Country of Particular Concern" pursuant to the International Religious Freedom Act. This is an important element of our bilateral dialogue with the Saudi government. The United States is working to promote religious and cultural diversity in Saudi Arabia and counter the spread of extremist ideology through high-level engagement and through exchange programs aimed at reaching key population groups. We also support efforts to promote moderation and tolerance, such as King Abdullah's National Dialogue initiative.

On April 25, 2005, following the visit of then-Crown Prince Abdullah to Crawford, Texas, the United States and Saudi Arabia issued a joint declaration noting that "future relations must rest on a foundation of broad cooperation. We must work to expand dialogue, understanding, and interactions between our citizens." The declaration noted that such cooperation would include programs designed to:

  • Increase the number of young Saudi students traveling and studying in the U.S.;
  • Increase military exchange programs so that more Saudi officers visit the U.S. for
military training and education; and
  • Increase the number of Americans traveling to work and study in Saudi Arabia.

In 2005, Saudi Arabia initiated a scholarship program to increase the number of young Saudi men and women pursuing undergraduate and graduate studies in the United States. By 2006, more than 15,000 Saudis were studying in the United States on government scholarships.

Ways to Assist Saudi Arabia in Reversing the Impact of Financial, Moral, Intellectual, or Other Support to Extremist Groups in Saudi Arabia and Other Countries, and to Prevent this Support from Continuing in the Future

The United States and Saudi Arabia work closely together to combat terrorism in Saudi Arabia and abroad. This includes collaboration on countering terrorist financing. The United States and Saudi Arabia have established a Joint Task Force on Terrorism Finance (JTFTF) that has strived to improve cooperation on combating terrorist financing. However, the Saudis still have not established a High Commission for Charities to oversee all charities in Saudi Arabia. Although the Saudis have increased oversight and monitoring of domestic charities, the government does not subject the foreign activities of Saudi-based international charities to the same level of scrutiny. Additionally, although the Saudis announced plans to establish the Commission for Relief and Charitable Works Abroad to oversee the activities of Saudi charities overseas, this body is not yet functioning.

The United States and Saudi Arabia have worked together to jointly designate entities to the UN 1267 Committee, and the Saudis have submitted over 20 names. To combat terrorist financing, Saudi Arabia has instituted new anti-money laundering and counterterrorism finance laws and regulations, including removing charity boxes from mosques, restricting the amount of cash that can be carried into or out of the Kingdom, and establishing a Financial Investigations Unit (FIU) in the Ministry of Interior to investigate money-laundering cases. However, the Customs authorities have not yet implemented the new regulations governing the movement of cash across Saudi Arabia's border.

5.4. The Struggle of Ideas in the Islamic World

Public diplomacy is essential to a successful foreign policy and to America's national security. The United States recognizes that the global and generational challenge of countering terrorism is, at its heart, a contest of ideas and values, and that America is more secure when people around the world share the same hopes and freedoms.

Goals for Winning the Struggle of Ideas

The State Department's public diplomacy work is guided by three strategic imperatives. First and foremost, it continues to offer a positive vision of hope and opportunity rooted in the enduring U.S. commitment to freedom. It promotes the fundamental and universal rights of free speech and assembly, the freedom to worship, the rule of law, and rights for women and minorities. It strives to isolate and marginalize violent extremists and undermine their efforts to exploit religion to rationalize their acts of terror. Finally, it fosters a sense of common interests and common values between Americans and people around the world.

Tools to Accomplish Such Goals

The United States advances these strategic objectives by vigorously engaging foreign publics to explain and advocate American policies. Reaching foreign audiences with core policy messages on democracy, tolerance, and the universal values of liberty, justice, and respect are at the center of U.S. efforts to counter extremist rhetoric and disinformation coming from hostile groups.

The United States is promoting increased exchanges, which exemplify the transformative power of American global engagement. The significance of people-to-people exchanges has never been more clear or compelling. The 9/11 Commission Report recognizes the essential contribution exchanges make to national security. The National Intelligence Reform Act of 2004 reaffirms the importance of America's commitment to exchanges.

The United States is expanding educational opportunities as the path to hope and opportunity. English language programs not only provide crucial skills but also open a window to information about the United States, its people, and its values. Americans must also better educate themselves about the world; the President's National Strategic Languages Initiative will encourage more American students to study critical languages such as Chinese and Arabic.

Responding to and quickly debunking misinformation, conspiracy theories, and urban legends is crucial for success in the war of ideas. The State Department maintains a public "Identifying Misinformation" website, in English and Arabic, devoted to countering false stories that appear in extremist and other web sources. The site focuses on disinformation likely to end up in the mainstream media. Embassies have used information from this site to counter disinformation in extremist print publications in Pakistan and other countries. One article, "A Trio of Disinformers," was the subject of a 1,100-word front-page article in an issue of the influential pan-Arab newspaper al-Sharq al-Awsat. "Identifying Misinformation" is featured on the usinfo.state.gov website, and is listed first of 17.6 million sites in a Google search for the term "misinformation." At least 49 websites have direct links to it.

The Internet, radio, television, and video products remain powerful tools for bringing America's foreign policy message to worldwide audiences. The State Department produces a wide array of print and electronic materials describing for foreign audiences, in their own languages, the need to counter those who have committed or wish to commit terrorist acts, as well as the achievements made in that struggle.

The State Department's premier web page to explain U.S. counterterrorism policy is "Response to Terrorism," created more than seven years ago and featured on usinfo.state.gov. The site is listed third out of 241 million sites in a Google search for the terms "terrorism U.S." At least 133 websites link directly to it.

In addition to featuring articles, texts, and transcripts from key policymakers, this site provides valuable links to the Electronic Journals series, the National Strategy for Combating Terrorism, the designated Foreign Terrorist Organization list, and the State Department's Country Reports on Terrorism. "Response to Terrorism" is located on the Internet at: http://usinfo.state.gov/is/international_security/terrorism.html.

Support for and understanding of the United States go hand-in-hand with strengthening and empowering the voices most credible to speak out in favor of tolerance and rule of law to counter the violent extremists' message of hate and terror. One of public diplomacy's greatest assets is the American people. Empowerment of individuals and groups--from all walks of life--is a key aspect of the Department's public diplomacy efforts.

As we actively prosecute the struggle of ideas, we need to recognize that this will require a long-term effort spanning years and generations. For that reason, we are placing increased emphasis on programs directed at younger audiences, including undergraduate and, in select cases, high school students.

The U.S. Government's assistance programs, administered through USAID, the Middle East Partnership Initiative, the Millennium Challenge Corporation, and other U.S. entities, advance U.S. interests in this area directly through programs to increase access to education, improve health care and empower people to build better lives. Civic engagement is an important component. Assistance programs to strengthen and professionalize independent media and civic society contribute to opening the "marketplace of ideas," as well as support development and reform across the board.

Through the $66 million in FY 2006 supplemental funds for civil society development, broadcasting, and exchange efforts related to Iran, we have dramatically increased our ability to speak directly to the Iranian people and Diaspora. This supports efforts to clarify U.S. policy objectives to the Iranian people and to increase pressure on the Iranian regime to suspend its funding of extremist activities abroad.

Benchmarks for Measuring Success and Linking Resources to Accomplishments

In 2004, State established the Public Diplomacy Evaluation Office (PDEO). Its mandate is to evaluate all major public diplomacy and exchange programs individually as well as provide an overall strategic framework for public diplomacy assessment.

The PDEO has researched other government public diplomacy evaluation and measurement tools and it is considered one of the most advanced in terms of measuring outcomes of public diplomacy. Organizations as diverse as the Peace Corps, Department of Defense, the British Council, the World Bank, and non-profits in Italy, Japan, and the Netherlands have all consulted with the PDEO on how to measure public diplomacy activities.

The measures used by the PDEO are based upon recognized social and behavioral science methodologies and include measuring changes in audience attitudes (knowledge, skills, perceptions, and understanding), behavior, and condition. Examples include:

  • Improved or increased understanding of the United States, its policies and values;
  • Initiated or implemented "positive" change within an individual's organization--positive referring to changes that support U.S. ideals and values;
  • Institutional partnerships and linkages and on-going collaboration; and
  • Changes in editorial content in major media.

Participation in International Institutions for the Promotion of Democracy and Economic Diversification

The United States is a leading participant in many international organizations, such as the United Nations and NATO, that are important to the struggle of ideas and the War on Terror. We also play a leading role in other initiatives, such as the Forum for the Future and the Community of Democracies, which stimulate cooperation with other nations to advance the agenda of freedom. For the first time since its creation in 2000, the Community of Democracies, in response to U.S. recommendations, created regional dialogues which brought together governmental and non-governmental organization representatives from each region, including the Middle East, to discuss the particular challenges and solutions unique to their area. We will continue to seek opportunities to build on the momentum coming out of the April ministerial, particularly in support of the Forum for the Future and the Broader Middle East and North Africa (BMENA) processes.

U.S. Assistance Sufficient to Convince Allies and People in the Islamic World that the United States Is Committed to Winning This Struggle

U.S. assistance programs are intended to improve economic conditions and opportunities in developing countries around the world, thereby serving the U.S. national interest in a more prosperous and secure international community. Our assistance can have the additional impact of demonstrating our commitment to help poorer countries or countries in special need, as we saw after the tsunami of 2004, and the Pakistan earthquake of 2005. There is, however, no set amount of money or time that we could identify as being sufficient to win the struggle of ideas.

5.5. Outreach through Broadcast Media

This section is provided by the Broadcasting Board of Governors (BBG).

Broadcasting Board of Governors Initiatives: Outreach to Foreign Muslim Audiences

The Broadcasting Board of Governors (BBG) continues to build its capacity to broadcast to Muslim populations in the Middle East and other parts of the world. In the past four years, the establishment of the Middle East Broadcasting Networks (MBN) illustrates the urgency and gravity of the broadcast priorities associated with the nation's War on Terror. Radio Sawa and Alhurra television's 24/7 Arabic broadcasts reach audiences in 22 countries in the Middle East as well as throughout Europe.

In 2006, the BBG made further progress in implementing its broadcast strategy across the broad geographical and cultural landscape of the Middle East and beyond. A dramatic increase in the Persian language television programming of the Voice of America has been a singular accomplishment, providing four hours of original television news and information each day to the people of Iran. A 12-hour stream of programming is expected to be on line by April 2007. At the same time, Radio Free Europe/Radio Liberty strengthened its 24/7 Persian broadcasts via Radio Farda by adding 30 minutes of additional daily news programming, as well as creating a more substantive, interactive website that enhances our ability to communicate directly with the Iranian people.

Through the combined skills of broadcasters at MBN, VOA, RFE/RL, and Radio Free Asia, the BBG is securing a public diplomacy strategy that mirrors U.S. national security priorities and focuses on nations that may suffer from, or contribute to, the scourge of terrorism. The implementation of this strategy focuses on building BBG's reach and impact within the Islamic world; facilitating citizen discourse; engaging the world in conversation about America; enhancing program delivery; helping audiences understand the principles of democratic societies; and employing modern communication techniques. The rigorous use of research, more frequent program review and oversight, and more compelling broadcast formats that will resonate in competitive, but critical, international markets remain crucial to this strategy. But underlying these techniques, the journalistic product and integrity remain the same. BBG broadcasters provide accurate, objective, and comprehensive news and information.

As BBG resources have shifted from areas of the world where the local media are increasingly free and robust to the Middle East and Southwest Asia, the BBG has created a new broadcast entity, MBN, and refocused the broadcasts of others. RFE/RL is now a major broadcaster to Iran, Iraq and Afghanistan. RFE/RL reaches audiences in the Muslim countries of Uzbekistan, Kazakhstan, Turkmenistan, Kyrgyzstan, Tajikistan, and Azerbaijan as well as the majority Muslim populations of Tatarstan, Bashkortostan, and the North Caucasus. VOA has similarly reduced its broadcasts to Europe, increasing its focus on Iran, Afghanistan, Indonesia, Pakistan, and other critical nations.

During the past year, BBG's broadcasters harnessed their broad journalistic resources to fully report on issues such as the Israeli-Hezbollah conflict in Lebanon, to provide a program perspective that is often lacking in media outlets abroad. BBG correspondents in the Unites States and around the world contribute to coverage available in 58 languages. Live, simultaneous interpretation of Presidential speeches, such as the State of the Union, and of Congressional hearings enables Muslim audiences to hear the President's message, as well as the Democratic response.

Arabic Broadcasting. To effectively communicate with the predominantly young audiences in the Middle East, the BBG created a new concept in international broadcasting - Radio Sawa - a 24/7 network of stations specifically designed to reach the large segment of the Arabic-speaking population under the age of 35. Radio Sawa went on the air in March 2002, quickly attracting and sustaining a loyal audience throughout the Middle East, as new transmission sites were added throughout the region. In 2007, Radio Sawa continues to broadcast accurate, authoritative, comprehensive, and timely news about the Middle East, the U.nited States, and the world. In addition to 325 newscasts per week, Radio Sawa offers discussion and informational programs such as the popular "Sawa Chat" interactive feature and the "Free Zone," a weekly review and discussion of democracy and freedom as they relate specifically to the Middle East. Feature programs encourage discussion of key social and political issues in a manner very different from indigenous Arab media.

Radio Sawa broadcasts on FM in Morocco (Rabat, Casablanca, Tangier, Meknes, Marrakesh, Agadir and Fes), Jordan (Amman and Ajlun), the Palestinian Territories (Ramallah and Jenin), Kuwait (Kuwait City), Bahrain (Manama), Qatar (Doha), U.A.E. (Abu Dhabi and Dubai), Iraq (Ba