Patterns of Global Terrorism 2003

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The Year in Review

There were 190 acts of international terrorism in 2003, a slight decrease from the 198 attacks that occurred in 2002, and a drop of 45 percent from the level in 2001 of 346 attacks. The figure in 2003 represents the lowest annual total of international terrorist attacks since 1969.

A total of 307 persons were killed in the attacks of 2003, far fewer than the 725 killed during 2002. A total of 1,593 persons were wounded in the attacks that occurred in 2003, down from 2,013 persons wounded the year before.

In 2003, the highest number of attacks (70) and the highest casualty count (159 persons dead and 951 wounded) occurred in Asia.

There were 82 anti-US attacks in 2003, which is up slightly from the 77 attacks the previous year, and represents a 62-percent decrease from the 219 attacks recorded in 2001. Thirty-five American citizens died in 15 international terrorist attacks in 2003:

■ Michael Rene Pouliot was killed on 21 January in Kuwait when a gunman fired at his vehicle that had halted at a stoplight.

■ Thomas Janis was murdered by Revolutionary Armed Forces of Colombia terrorists on 13 February in Colombia. Mr. Janis was the pilot of a plane owned by Southern Command that crashed in the jungle. He and a Colombian army officer were wounded in the crash and shot when the terrorists discovered them.Three American passengers on the plane—Keith Stansell, Marc D. Gonsalves, and Thomas R. Howes—were kidnapped and are still being held hostage.

■ William Hyde was killed on 4 March in Davao, Philippines, when a bomb hidden in a backpack exploded in a crowded airline terminal.Twenty other persons died, and 146 were wounded. The Moro Islamic Liberation Front (MILF) denies any connection to the suspected bomber who claimed he was an MILF member.

■ Abigail Elizabeth Litle was killed on 5 March when a suicide bomber boarded a bus in Haifa, Israel, and detonated an explosive device.

■ Rabbi Elnatan Eli Horowitz and his wife Debra Ruth Horowitz were killed on 7 March when a Palestinian gunman opened fire on them as they were eating dinner in the settlement of Kiryat Arba.

■ The deadliest anti-US attack occurred in Riyadh, Saudi Arabia, on 12 May when suicide bombers in boobytrapped cars filled with explosives drove into the Vinnell Jadewel and Al-Hamra housing compounds, killing nine US citizens. Killed at the Vinnell compound were: Obaidah Yusuf Abdullah, Todd Michael Blair, Jason Eric Bentley, James Lee Carpenter Ⅱ, Herman Diaz, Alex Jackson, Quincy Lee Knox, and Clifford J. Lawson. Mohammed Atef Al Kayyaly was killed at the Al-Hamra compound.

■ Alan Beer and Bertin Joseph Tita were killed on 11 June in a bus bombing near Klal Center on Jaffa Road near Jerusalem.

■ Howard Craig Goldstein was killed in a shooting attack near the West Bank settlement of Ofra on 20 June.

■ Fred Bryant, a civilian contractor, was killed on 5 August in Tikrit, Iraq, when his car ran over an improvised explosive device.

■ Three Americans were among the victims of a deadly truck bombing of the UN headquarters in Baghdad’s Canal Hotel on 19 August. They were Arthur Helton, Richard Hooper, and Martha Teas. UN Special Representative Sergio Vieira de Mello was also among the 23 fatalities.

■ Five Americans were killed in Jerusalem on 19 August when a suicide bomber riding on a bus detonated explosives attached to his body. They were Goldy Zarkowsky, Eli Zarkowsky, Mordechai Reinitz,Yessucher Dov Reinitz, and Tehilla Nathansen. Fifteen other persons were killed and 140 wounded in the attack.

■Dr. David Applebaum and his daughter Naava Applebaum were killed on 9 September in a bombing at the Cafe Hillel in Jerusalem.

■Three Americans were killed on 15 October in Gaza Strip as their US Embassy Tel Aviv motorcade was struck by an apparent roadside blast.They were John Branchizio, Mark T. Parson, and John Martin Linde, Jr. All three were security contractors.

■Lt. Col. Charles H. Buehring was killed on 26 October in Baghdad during a rocket-propelled grenade attack on the Al-Rasheed Hotel. Deputy Secretary of Defense Paul D. Wolfowitz was staying at the hotel at the time of the attack.

■ Two Americans,William Carlson and Christopher Glenn Mueller, were killed in an ambush by armed militants in Shkin, Afghanistan, on 27 October. Both were US Government contract workers.

Note: Most of the attacks that have occurred during Operation Iraqi Freedom and Operation Enduring Freedom do not meet the longstanding US definition of international terrorism because they were directed at combatants, that is, US and Coalition forces on duty. Attacks against noncombatants, that is, civilians and military personnel who at the time of the incident were unarmed and/or not on duty, are judged as terrorist attacks.

Africa Overview

Westerners and Africans alike continued to be the victims of terrorism in Africa during 2003. Nevertheless, the cooperation of African governments in the war on terrorism improved and strengthened during the year.

East Africa, particularly Somalia, continued to pose the most serious threat to American interests due to the presence of active al-Qaida elements.

In nearby Kenya, a policeman was killed in August when a terrorist suspect detonated a hand grenade, killing the suspect and the policeman, but permitting a confederate of the suspect to escape. As a result of this and other events, Kenyan authorities reevaluated their views of terrorism.They appear to have concluded that terrorism in Kenya is not just a foreign problem and that terrorism has put down roots in Kenya too.

The US East Africa Counterterrorism Initiative (EACTI) has dedicated sizeable resources to improving police and judicial counterterrorist capabilities in the East African countries of Kenya, Uganda, Tanzania, Djibouti, Eritrea, and Ethiopia.The EACTI also provides training and some equipment for special counterterrorism units for senior-level decisionmakers and for legislators who are concerned with drafting legislation on terrorist financing and money laundering. EACTI also includes a strong public diplomacy and outreach component.

During February and March, an Algerian terrorist group, the Salafist Group for Call and Combat (GSPC), kidnapped some 30 European tourists in Algeria. They took their captives to Mali, whose government was instrumental in securing their release in August. Members of the GSPC continued to hide in the Sahel region, crossing difficult-to-patrol borders between Mali, Mauritania, Niger, and Algeria.

The United States continued to work with the Governments of Mali, Mauritania, Niger, and Chad on the implementation of the Pan-Sahel Initiative, a program designed to assist those nations in protecting their borders, combating terrorism, and enhancing regional stability. Components of the program are intended to encourage the participating countries to cooperate with each other against smuggling and trafficking in persons, as well as in the sharing of information.

Africans themselves have taken cooperative action against terrorism. Many nations made real efforts to sign and ratify the 12 international conventions and protocols relating to terrorism. Botswana, Ghana, Kenya, Mali, and Sudan have signed all 12 protocols. The African Union (AU) has designated Algiers as the location of an AU counterterrorism center. Several nations have formed national counterterrorism centers.

The Revolutionary United Front of Sierra Leone no longer exists as a terrorist organization, although some former members have organized a political party that has a small following. The Allied Democratic Front terrorist organization in Uganda has lost the ability to function as a group. However, the Lord’s Resistance Army (LRA) continues to kill and plunder Ugandan civilians and villages, even though the Ugandan Government has offered amnesty (though not for all) and negotiations with the group. Sudan appears to have cut off the supplies for the LRA in large part. Sudan itself remains one of seven state sponsors of terrorism, however, and is discussed in the state sponsorship section of this report.

Angola

With a year having passed since the final peace agreement ending the Angolan civil war, Angola has made limited progress in reconstruction and national reconciliation. As a nonpermanent member of the United Nations Security Council, Angola actively supported UN antiterrorism efforts. It has publicly condemned acts of international terrorism and has worked domestically to strengthen immigration and border controls. In the past, Cabindan separatists have kidnapped Westerners, including an American citizen in 1990; however, there were no reports of terrorist incidents in Angola this year.

Djibouti

Djibouti, a staunch supporter in the global war on terrorism and a member of the Arab League, has taken a strong stand against international terrorist organizations and individuals. Djibouti hosts the only US military base in Sub-Saharan Africa. In addition to US forces, it hosts Coalition forces from four other countries including France, Germany, Spain, and Italy. There were no confirmed acts of domestic or transnational terrorism in Djibouti in 2003, but the Government took extraordinary measures from its limited resources to try and ensure the safety and security of Westerners posted in Djibouti.The Government also began an aggressive immigration campaign to remove illegal aliens from Djibouti in an attempt to weed out potential terrorists.The Government also has closed down terrorist-linked financial institutions and shared security information on possible terrorist activity in the region.The counterterrorism committee under President Guelleh moved to enhance coordination and action on information concerning terrorist organizations.

In October 2002, the United States established the Combined Joint Task Force-Horn of Africa (CJTF-HOA). Based in Djibouti, CJTF-HOA coordinates Coalition counterterrorism operations in six East African countries and Yemen.

Djibouti is a party to three of the 12 international conventions and protocols relating to terrorism and signed the Convention for the Suppression of the Financing of Terrorism on 15 November 2001.

Ethiopia

Ethiopia has been consistently helpful in its cooperation in the global war on terrorism. Significant counterterrorism activities included political, financial, media, military, and lawenforcement actions. To counter the threat from the Somalia-based Al-Ittihad al-Islami (AIAI), Ethiopia has undertaken increased military efforts to control its lengthy and porous border with Somalia. The Government also has enhanced counterterrorism coordination with the United States.

Ethiopia is a party to seven of the 12 international conventions and protocols relating to terrorism.

Kenya

Kenya remains a responsive and active partner in the war on terrorism, providing assistance with ongoing terrorist investigations and stepping up efforts to target terrorist groups operating within Kenya. In 2003, Kenya began to more vigorously address institutional weaknesses that impede its ability to pursue terrorists and respond to threats. In April of 2003, Kenya published a draft “Suppression of Terrorism” bill and is in the process of redrafting the bill to incorporate concerns from civil society leaders who fear the bill may violate human rights.

Kenya and the United States continue to share information on suspected terrorists, including those associated with or supportive of al-Qaida. It has taken the initiative in arresting terrorist suspects and disrupting terrorist operations. Kenya, for example, is an active participant in the Terrorist Interdiction Program. As one of the nations affected by the East Africa bombings in 1998, Kenya remains fully cooperative in assisting the US investigations of those attacks.

The Kenyan Government has been more outspoken on the domestic nature of Kenya’s terrorist threat and the involvement of Kenyan nationals in terrorist activity, particularly after a policeman was killed while attempting to apprehend suspected terrorists in August 2003. Kenyan Cabinet ministers, some of whom had earlier downplayed the terrorist presence in Kenya, have called for communities to be vigilant in looking for terrorists working in their midst. Courageous leadership combined with success in revealing and disrupting terrorist activity has contributed to a nationwide change of attitude toward terrorism in 2003.

Kenya has ratified all 12 international counterterrorism conventions and protocols.

Mali

Mali has taken consistent and active steps to combat terrorism and has been particularly responsive on terrorist financing issues.The Government, for example, regularly distributes terrorist finance watch lists to the banking system.

The Malian Government has been receptive to the idea of strengthening its borders and is the key recipient of the Pan-Sahel Initiative, which is primarily focused on common border-security issues with Chad, Niger, Mali, and Mauritania. There were no acts of terrorism against US interests in

Mali during 2003. However, the Government was actively involved in the freeing of European tourists in northern Mali who had been kidnapped in Algeria by the Algeria-based terrorist group the Salafist Group for Preaching and Combat. Mali has ratified all 12 UN conventions and protocols relating to terrorism.

Nigeria

Nigeria remained committed to the global war against terrorism and has continued diplomatic efforts in both global and regional forums concerning counterterrorism issues.The President and other African heads of state founded the New Partnership for African Development—geared toward sustainable development in Africa—which has helped African countries combat terrorism.

Nigeria has been helping to monitor threats to US citizens living in Nigeria and has cooperated with the United States on tracking and freezing terrorists’ assets. Nigeria’s relatively large and complex banking sector, combined with widespread corruption, makes combating terrorism financing more difficult, however.The Government has actively shared information about the rise of radical Islam in Nigeria—home of Africa’s largest Muslim population.

Nigeria is a party to six of the 12 international conventions and protocols relating to terrorism, including the Convention for the Suppression of the Financing of Terrorism.

Rwanda

The Rwandan Government has continued to give full support to US-led efforts to combat terrorism. The Government has been responsive to US requests to eradicate terrorism financing and has increased surveillance of airports, border controls, and hotel registrations in an effort to identify potential terrorists. Rwanda established an intergovernmental counterterrorism committee and has an antiterrorism section in its police intelligence unit.

During 2003, the Government aggressively pursued the Democratic Forces for the Liberation of Rwanda, formerly known as the Army for the Liberation of Rwanda (ALIR), an armed rebel force composed of former soldiers and supporters of the previous government that orchestrated the genocide in 1994. The group, which operates in the Democratic Republic of the Congo, employs terrorist tactics. In 1999, ALIR was responsible for the kidnapping and murder of nine persons, including two US tourists in Bwindi Park.With the assistance of Rwandan authorities in 2003, three suspects in the attack were transferred to the United States for prosecution, and other evidence was obtained through interviews with witnesses.

Rwanda is a party to eight of the 12 international counterterrorism conventions and protocols.

Sierra Leone

The Government of Sierra Leone has cooperated in the struggle against terrorism.The Revolutionary United Front, essentially dismantled by the imprisonment of its leader Foday Sankoh in 2001, has disappeared as a terrorist organization, although some of its former members have organized into a political party that has attracted a small following. Allegations of West African and particularly Sierra Leonean diamonds being used by al-Qaida to finance terrorism have not been proven.

The government of Sierra Leone is a party to seven of the 12 international conventions and protocols relating to terrorism.

Somalia

Somalia’s lack of a functioning central government; protracted state of violent instability; and long coastline, porous borders, and proximity to the Arabian Peninsula make it a potential location for international terrorists seeking a transit or launching point to conduct operations elsewhere. Regional efforts to bring about a national reconciliation and establish peace and stability in Somalia were ongoing in 2003.The US Government does not have official relations with any entity in Somalia. Although the ability of Somali entities to carry out counterterrorism activities is constrained, some have taken limited actions in this direction.

Members of the Somali-based AIAI have committed terrorist acts in the past, primarily in Ethiopia. AIAI was originally formed in the early 1990s with a goal of creating an Islamic state in Somalia. In recent years, AIAI has become highly factionalized, and its membership is difficult to define. Some elements of AIAI continue to pose a regional domestic threat, other factions may be targeting Western interests in the region, while still other elements are concerned with humanitarian issues. At least one faction is sympathetic to al-Qaida and has provided assistance to its members.

Somalia has signed, but has yet to become a party to, the Convention for the Suppression of the Financing ofTerrorism.

South Africa

South Africa has taken a number of actions in 2003 as part of the global war on terrorism. It has declared its support for the antiterrorism Coalition and has shared financial, lawenforcement, and intelligence information with the United States. Approximately one year after President Mbeki signed into law the Financial Intelligence Center legislation, the center is focusing on suspicious transaction reports and plans to broaden its services in the coming year.

Parliament’s National Assembly adopted broad antiterrorism legislation entitled Protection of Constitutional Democracy Against Terrorists and Related Activities Bill.The measure is expected to pass the bicameral legislature in early 2004. Despite initial opposition to previous versions of the bill, all South African political parties supported the final version.

Public and private statements by South Africa have been supportive of US counterterrorism efforts. President Mbeki has, on several occasions, voiced his opinion that there is no justification for terrorism.

In the past year, South Africa acceded to four United Nations antiterrorism conventions, making South Africa a party to nine of the 12 UN antiterrorism conventions.

Tanzania

Tanzania continues to be a supportive partner in the global war against terrorism. It has cooperated on several multiyear programs to build law-enforcement capacity, enhance border security, improve civil aviation security, and combat money laundering and terrorist finance.

Tanzanian and US authorities established a close working relationship after the bombing in 1998 of the US Embassy in Dar es Salaam and have cooperated in bringing bombing suspects to trial in New York and Dar es Salaam; one suspect stood trial in Tanzania in 2003. Although cooperative, Tanzanian law enforcement authorities still have a limited capacity to investigate terrorist suspects and bring them to justice. A comprehensive Prevention of Terrorism Act—approved in late 2002—has yet to be enforced, and implementing regulations for the law have not been drafted.

Tanzania is a party to seven of the 12 international conventions and protocols relating to terrorism.

Uganda

Uganda continued its firm stance against local and international terrorism in 2003.A new anti-money laundering bill is slated to go before Parliament for adoption in early 2004. In 2002, the Government enacted the Suppression ofTerrorism Act, which imposes a mandatory death penalty for terrorists and potential death penalty for their sponsors and supporters. The Act’s list of terrorist organizations includes al-Qaida, the LRA, and the Allied Democratic Front (ADF).

The Ugandan military continued its successful operations against the ADF, resulting in a decrease in ADF activities in western Uganda.There were no bombings by the ADF in 2003, although there were numerous fatal attacks by the LRA against civilian targets in northern Uganda.

Uganda is a party to 10 of the 12 international conventions and protocols relating to terrorism.

South Asia Overview

In 2003, South Asia continued to be a central theater of the global war on terrorism. The Afghan Transitional Authority convened a Loya Jirga, and representatives debated and approved a new national constitution. The first units of the Afghan National Army joined in US and Coalition operations against antigovernment forces in the south and east of the country.The national police force continued to grow as government institutions prepared for elections in 2004.

Despite this progress, security remained a concern; the Taliban, al-Qaida, and Hizb-I Islami Gulbuddin (HIG) continued to target the Coalition, noncombatant reconstruction civilians, and the Afghan Government.The NATO-led International Security Assistance Force (ISAF) announced its intention to expand its operations outside of Kabul.

Pakistan remained a key partner in the war on terror and continued its close cooperation with the United States in law enforcement, border security, and counterterrorism training. In 2003, the Musharraf government began to increase pressure on terrorists seeking refuge along the border with Afghanistan, conducting antiterrorist operations in the Federally Administered Tribal Areas for the first time. As in the previous year, Pakistani security authorities made numerous arrests of suspected terrorists, including important members of the al-Qaida leadership.

India continued to be the object of attacks by foreignbased and Kashmiri groups operating in Jammu and Kashmir. Nevertheless, Indian counterterrorist authorities could point to significant progress in the areas of legislation, finance, and investigations. India remained an important US partner in the global war on terror, and the United States hopes to continue to strengthen this relationship.

The cease-fire in Sri Lanka between the Liberation Tigers of Tamil Eelam (LTTE) and the Sri Lankan Government held throughout 2003, despite a political crisis within the government that has delayed the resumption of direct talks between the two sides. International aid has begun to reach Sri Lankans living in LTTE-controlled territory, addressing one of the obstacles to a negotiated settlement. In contrast, the Maoists in Nepal abrogated an eight-month cease-fire and resumed their campaign of armed attacks, bombings, assassination, and extortion against the Government and citizens of Nepal. The Maoists have also extorted money from Western tourists and threatened US citizens and interests, as well as nongovernmental organizations (NGO) and businesses connected with the United States.

Afghanistan

Afghanistan made progress toward rebuilding the government and the country in 2003. In December, Afghanistan successfully held the Constitutional Loya Jirga or Grand Assembly, with delegates from around the country assembling in Kabul and approving a national constitution. Other achievements include: continued development of the Afghan National Army (ANA) and expanded training of the Afghan National Police, preliminary efforts to demobilize militia forces, and initial voter registration. In the coming year, Afghans will face challenges as they prepare for elections—scheduled for June 2004—with a precarious security environment in parts of the country.

President Karzai and the Afghan Government remained committed to the war on terrorism.The ANA began combat operations against antigovernment elements, including the Taliban, al-Qaida, and HIG, largely in Afghanistan’s south and east in support of the US-led international Coalition and the ISAF.

The Taliban, al-Qaida, and HIG targeted Afghan Transitional Administration (ATA), US, Coalition, and ISAF assets in Kabul and in eastern and southern Afghanistan in an effort to destabilize the country. These groups also hampered reconstruction efforts with attacks on nongovernmental organizations and United Nation facilities and personnel.

Al-Qaida regards Afghanistan as an important base of operations and continues its armed opposition to US presence. Al-Qaida fighters remain along the rough eastern border between Afghanistan and Pakistan’s tribal areas. Afghan troops conduct joint operations against antigovernment elements with US military and Coalition forces.Through a series of tripartite commission meetings, Afghanistan and Pakistan have also made significant progress in sharing information and coordinating their efforts to improve security along the border.

Afghanistan is a party to 11 of the international conventions and protocols relating to terrorism.

India

The Indian Government remained steadfast in its desire to combat terrorism in 2003 and has worked closely with the United States in this regard. For example, several hundred Indian law enforcement officials participated in training as part of the Antiterrorism Assistance program. During the year, the Indian Government also moved to strengthen its international cooperation in curbing terrorism financing. In January, the Parliament enacted an anti-money laundering law that provides the legal basis for establishing a financial intelligence unit to monitor suspect transactions.

In March, the Indian Government announced that 32 terrorist organizations had been listed under the Prevention of Terrorism Act and, in July, informed Parliament that 702 persons had been arrested under the Act.

The Indian Government stepped up its efforts to counter the activities of various groups. In the states of Jammu and Kashmir, killings of civilians by foreign-based and Kashmiri militant groups continued and included the murder of numerous political leaders and party workers. The Indian Government asserted that Lashkar-i-Tayyiba and Jaish-e-Mohammed were behind a number of high-profile attacks in the state, which included the massacre of 24 Hindu civilians in southern Kashmir in March and an attack on 17 October outside the Chief Minister’s residence compound in Srinagar.

Attacks took place in other parts of the country as well. Indian police said they had captured or killed all of the individuals responsible for the twin bombings on 25 August in Mumbai that left 53 dead and 160 injured.The Indian Government asserted that the responsible individuals were associated with Lashkar-i-Tayyiba. The People’s War Group—a Maoist “Naxalite” organization—claimed responsibility for a car-bomb attack in October that seriously injured Chandrababu Naidu, chief minister of Andhra Pradesh.

India is a party to all 12 of the international conventions and protocols relating to terrorism.

Nepal

The Government of Nepal in 2003 strongly supported US counterterrorism activities and was responsive to multilateral efforts to police international terrorism. On 25 April 2003, Nepal signed an agreement with the US Government to establish an antiterrorism assistance program. Nepal’s primary focus, however, remained the Maoist insurgency, active in Nepal since February 1996.

The Maoist insurgency poses a continuing threat to US citizens and property in Nepal. Repeated anti-US rhetoric and actions suggest the Maoists view US support for Kathmandu as a key obstacle to their goal of establishing a doctrinaire communist dictatorship. After they unilaterally withdrew from a seven-month cease-fire on 27 August, the Maoists resumed full-scale hostilities. Since then, the Maoists have been responsible for the deaths of an estimated 259 civilians and 305 government security forces. The Government says that Nepalese security forces have arrested thousands of suspected Maoists and killed more than 1,000 during the year. As part of their program, the Maoists have threatened attacks against US-sponsored NGOs and have sought to extort money from Westerners to raise funds for their insurgency. The Maoists’ public statements have criticized the United States, the United Kingdom, and India for providing security assistance to Nepal.

Limited government finances, weak border controls, and poor security infrastructure have made Nepal a convenient logistic and transit point for some outside militants and international terrorists. The country also possesses a number of relatively soft targets that make it a potentially attractive site for terrorist operations. Security remains weak at many public facilities, including the Tribhuvan International Airport in Kathmandu, but the United States and others are actively working with the Government to improve this situation.

Nepal is a party to five of the 12 international conventions and protocols relating to terrorism and is a signatory to the Convention for the Suppression of Terrorist Bombings.

Pakistan

Pakistan continues to be one of the United States’ most important partners in the global coalition against terrorism. President Musharraf has himself been the target of terrorist violence, narrowly escaping two assassination attempts in late 2003. US assistance supported Pakistan’s efforts to establish a government presence along the Pakistan-Afghanistan border and eliminate terrorist safehavens. Pakistan continued operations in the autonomous Federally Administered Tribal Areas, capturing and killing a number of terrorist operatives.

Pakistan’s military, intelligence, and law-enforcement agencies are cooperating closely with the United States and other nations to identify, interdict, and eliminate terrorism both within Pakistan and abroad. To date, hundreds of suspected operatives of these groups have been successfully apprehended with the cooperation of Pakistani authorities.Among those captured in 2003 were Khalid Shaykh Muhammad—the mastermind of the 9/11 attacks—andWalid Bin Attash—a prime suspect in the attack on the USS Cole in October 2002.When several militant and sectarian groups that had been banned in 2002 began operating under new aliases, the Pakistani Government banned them as well.

Pursuant to its obligations under UN Security Council Resolutions 1267, 1333, 1390, and 1455, Pakistan continues to work with the UN 1267 Sanctions Committee to freeze the assets of individuals and groups identified as terrorist entities linked to al-Qaida or the Taliban.

Pakistan’s Anti-Terrorism Courts continue to respond to both international and domestic cases of terrorism. In April 2003, an Anti-Terrorism Court in Karachi convicted four defendants charged with organizing the bombing of the US Consulate in June 2002 in Karachi and, in June 2003, convicted three men charged with the bombing in May 2002 that killed 11 French naval technicians. In November 2003, the same court handed down death sentences for three members of the banned extremist groups Lashkar-i-Jhangvi for planning and committing sectarian murders.

US-Pakistan joint counterterrorism efforts have been extensive. They include cooperative efforts in border security and criminal investigations, as well as several long-term training projects. In 2002, the United States and Pakistan established the Working Group on Counterterrorism and Law-Enforcement Cooperation.The meetings provide a forum for discussing ongoing US-Pakistani efforts, as well as a means for improving capabilities and cooperation. Pakistan provides significant assistance in the investigation of international terrorism, acting on leads provided to its counterterrorism and law enforcement agencies by the United States and other nations.

Pakistan has signed 11 of the 12 international conventions and protocols relating to terrorism and is a party to 10.

Sri Lanka

Sri Lanka continues to support our global efforts to combat terrorism as well as undertaking their own efforts to combat terrorism domestically. Sri Lanka has actively supported international regimes to combat terrorist financing as well.

There were no incidents of international terrorism in Sri Lanka in 2003, as the cease-fire signed between the Government of Sri Lanka and the LTTE held, despite a halt in face-to-face negotiations and a serious political crisis within the Sri Lankan Government. There were no LTTE suicide bomb attacks throughout 2003, and the group continues to pursue ways to further peace talks. The LTTE has publicly accepted the concept of internal autonomy within a federal Sri Lankan state, conceding its longstanding demand for a separate Tamil Eelam state. In support of the peace process, the US Government has made limited, working-level contact with LTTE authorities to facilitate delivery of humanitarian aid.

Despite this progress, the LTTE, one of the world’s deadliest terror groups, did not renounce terrorism or disband its “Black Tiger” suicide squads. It continues to smuggle weaponry into Sri Lanka and to forcibly recruit children into its ranks.

It is too early to tell whether the Sri Lankan peace process will ultimately bear fruit or whether the LTTE will actually reform itself. Although guarded optimism continued to surround the peace process, the United States will maintain the designation of the LTTE as a Foreign Terrorist Organization until it unequivocally renounces terrorism in both word and deed.

Sri Lanka is a party to 10 of the 12 international conventions and protocols relating to terrorism.

East Asia Overview

The capture by Thai authorities in August of top Jemaah Islamiya (JI) leader and al-Qaida’s representative in Southeast Asia, Nurjaman Riduan bin Isomuddin (a.k.a. Hambali) was a significant victory in the global war on terrorism. Hambali, an Indonesian, was captured at an apartment complex in Ayutthaya,Thailand, and is suspected of masterminding numerous terrorist attacks in Southeast Asia, including the Christmas Eve church bombings in 2000 in Indonesia (19 dead, 47 wounded); the bombings on 30 December 2000 in metro Manila, Philippines (22 dead); the Bali attacks on 12 October 2002 (202 dead, more than 330 wounded); and possibly the J.W. Marriott Hotel bombing on 5 August 2003 in Jakarta (12 dead, over 150 wounded). Furthermore, Hambali was key in planning terrorist attacks with multiple targets in Singapore, disrupted in December 2001, and in planning Thailand attacks that were disrupted in May 2003. Hambali’s capture and detention serves as a major blow to both JI and al-Qaida.

In 2003, as Hambali’s capture illustrates, it became clearer that the Asia-Pacific region, primarily Southeast Asia, is an attractive theater of support and logistics for al-Qaida and a theater of operations for the regional terrorist group Jemaah Islamiya, acting alone or in collaboration with indigenous extremist groups. Hambali’s case—an Indonesian national perpetrating attacks in Indonesia and the Philippines and planning attacks in Singapore and Thailand—serves as a case in point and accurately reflects the transnational nature of the terrorist threat in Southeast Asia.

Overall, counterterrorism cooperation with Asian governments was good in 2003, and solid progress was made to close seams between jurisdictions and share information on terrorist groups and their activities. As governments in the region continued their efforts to arrest and interdict terrorists by building and improving their counterterrorism capabilities, JI and other terrorists adapted by focusing on softer Western targets in Southeast Asia.The bombing on 5 August 2003 of the J.W. Marriott Hotel in Jakarta that killed 12 marks a continuation of this trend.This attack galvanized the Indonesian Government’s will to take action.

Although most indigenous terrorist and Muslim separatist groups in Indonesia, Malaysia, the southern Philippines, and Thailand share an ideology and general rejection of Western influence held by international Islamic terrorists, they are focused primarily on effecting change within their home countries. Many leaders of Southeast Asian groups fought or claim to have fought in Afghanistan in the “Jihad” and brought back critical skills and contacts—along with burnished extremist credentials.The relationships formed in Afghanistan developed into a widening network in which local extremists were able to tap into international terrorist networks for operational support, training and/or funds, and vice versa.The net effect of the influence of such groups is to decrease the likelihood of peaceful and long-term solutions to separatist movements/ethnic conflicts, to exacerbate current regional terrorism, and to foster an environment conducive to terrorism’s continued growth.

Extremists have been able to win supporters by financially supporting schools and mosques that espouse their brand of Islam and exploiting religious sympathies or discontent among Muslim populations. Muslim populations in the Philippines, Indonesia, Malaysia, Thailand, Singapore, and Cambodia are vulnerable to such radical influences.

Partners such as Australia, Japan, the United Kingdom, Canada, New Zealand, and others are working with the United States to assist governments in the region to overcome these challenges by providing training and assistance.The primary tools to build such capacity remain bilateral engagement programs, but much progress was made in working multilaterally to promote regional and transnational approaches to the challenges of counterterrorism. Building upon the Association of Southeast Asian Nations Regional Forum (ARF) for CounterterrorismWorkplan, the Asia-Pacific Economic Cooperation (APEC) CounterterrorismTask Force, and other mechanisms, the region as a whole made advances in areas such as law enforcement, border control, transportation security, information sharing, antiterrorist financing, and the development of legal regimes.

Australia and Japan maintained their strong counterterrorism stance in 2003, both domestically and abroad. Senior officials from both countries publicly declared their firm commitment to work with the United States to combat terrorism over the long term in a meeting of the three counterterrorism ambassadors in November in Canberra. Australia and Japan continue to contribute to the war on terrorism in Afghanistan. Australia made strong contributions to the US-led Coalition in Iraq, while Japan’s October passage of the Iraq Reconstruction Assistance Law, which includes provision for dispatching the Japan Self-Defense Forces to Iraq, reflects its strong commitment to assist in reconstruction and humanitarian efforts (deployment, in fact, took place in early 2004).

Australia and Japan are active in helping Asia-Pacific countries build their capacity in various international and regional forums to combat terrorism. Australia, for example, has broadened its network of bilateral counterterrorism arrangements in Southeast Asia to eight nations.The APEC Leaders’ Summit in 2003 endorsed two Australian counterterrorismrelated initiatives: advancement of passenger information systems and development of a regional movement-alert system. Japanese officials led seminars on immigration control, aviation security, customs cooperation, export control, law enforcement, and terrorist financing.

In May, Cambodian authorities arrested one Egyptian, two Thais, and one Cambodian suspected of being members of JI.The cell was plotting to conduct terrorist attacks in Cambodia and had been operating out of an Islamic school on the outskirts of Phnom Penh run by the Saudi Arabia-based nongovernmental organization, Umm al-Qura.

China continues to take a clear stand against international terrorism and is broadly supportive of the global war on terror. China actively participated in the Shanghai Cooperation Organization (SCO) and engaged in SCO joint counterterrorism exercises in Kazakhstan and Xinjiang Province in August. The People’s Bank of China is in the process of establishing an Anti-Money Laundering Bureau, which will include a Terrorist Finance Investigative Department. Beijing displays a general willingness to cooperate with international terrorism investigations and continues to assert that terrorists—primarily based in Xinjiang Province—operate on Chinese territory.

Indonesia continued its firm public stance against terrorism in 2003.The government, led by the Indonesian National Police, has taken effective steps to counter the threat posed by JI, arresting 109 suspected JI members—most in 2003—including suspects in the Bali attacks, the Marriott attack, and other criminal acts linked to terrorism. Indonesia has adopted a comprehensive terrorism law defining various acts of terror and providing police and prosecutors with broader powers to combat terrorism—such as extended pretrial detention periods and the use of electronic evidence in court.

Nevertheless, persistent Indonesian domestic sensitivities, political pressures, and institutional weaknesses limit the Government’s effectiveness. The Government, for example, made little effort to investigate the activities and affiliations of six students suspected of terrorist involvement who were deported from Pakistan in early December 2003; two were released within days of their repatriation to Indonesia.

On 1 July, Malaysia established a Southeast Asia Regional Center for Counterterrorism (SEARCCT). SEARCCT is expected to focus on regional training, information sharing, and public awareness campaigns. In August, SEARCCT hosted a training program sponsored by the US Treasury’s financial intelligence unit and Malaysia’s Central Bank on combating terrorist financing. Other nations, including the United Kingdom, Germany, and Australia, are also expected to provide trainers and training materials to the center.

Malaysia has detained more than 100 suspected terrorists under the Internal Security Act (ISA) since May 2001 and assisted Indonesian efforts to prosecute terrorist suspects by making video testimony from suspects in Malaysian custody available to Indonesian prosecutors. Malaysia has responded quickly to UN Security Council requirements to prohibit terrorist financing and freeze the assets of named entities. In September, Malaysia deposited the instruments of ratification for two international antiterrorism conventions: the International Convention for the Suppression of Terrorist Bombings and the Convention on the Prevention and Punishment of Crimes against Internationally Protected Persons. It has not yet become a party, however, to the critical International Convention for the Suppression of the Financing of Terrorism.

New Zealand appointed its first Ambassador for Counterterrorism in September to build upon the measures taken since the attacks of September 11 in the United States and to ensure that New Zealand has a stronger capacity to develop and implement policies on global terrorism and related security issues. New Zealand continues to support Operation Enduring Freedom. It deployed troops to Iraq and Afghanistan to participate in the reconstruction efforts and pledged to provide humanitarian aid, as well as keeping its previous commitment of sending military forces to the region.

The Philippines was the victim of a number of terrorist attacks in 2003, including the car-bomb attack adjacent to a military airfield in Cotobato, on the southern island of Mindanao on 21 February; the bombing on 4 March at the International Airport in Davao, Mindanao that killed 17 (including one US citizen); the Sasa Wharf bombing on 2 April also in Davao that killed 15; a series of bombings in Koronadal City, Mindanao, that took more than 15 civilian lives; as well as a number of kidnappings-for-ransom operations.

President Gloria Macapagal-Arroyo and other Philippine officials continue to be outspoken supporters of the global Coalition against terrorism and have been swift and direct in condemnation of terrorist acts, both domestic and international. The Government of the Philippines created a multiagency counterterrorism task force chaired by the National Security Advisor and consisting of officials from 34 Philippine Government agencies representing the security, economic, and social components essential for an effective counterterrorism strategy. In October, the Philippine Government ratified the remaining six of the 12 United Nations counterterrorism conventions.

Philippine authorities made several significant arrests of suspected terrorists in 2003. In May, security forces arrested a sub-commander of the separatist Moro Islamic Liberation Front (MILF) involved in the explosion of 30 December on a Manila commuter train that killed 22 people. In October, a JI operative was arrested at a JI safehouse in Cotabato City, on the southern island of Mindanao. In December, Philippine Armed Forces captured Abu Sayyaf Group (ASG) leader “Commander Robot,” a leader of one of the main ASG factions responsible for numerous kidnappings and bombings during the last decade, including the kidnapping inApril 2000 ofWestern tourists from the Malaysian resort of Sipadan.

Despite its overall positive record, Manila continues to face setbacks and challenges on the counterterrorism front. In July, a senior Indonesian JI operative escaped from Philippine National Police headquarters in Manila along with two suspected ASG members. All three were eventually killed or recaptured.

Singapore continued its strong public and private opposition to terrorism and maintained vigorous counterterrorism action in bilateral and multilateral contexts. There were no acts of international or domestic terrorism in Singapore in 2003, although authorities continued investigation and detentions of members of JI, which plotted to carry out attacks in Singapore in the past.

During 2003, Singapore continued its cooperation with a variety of governments, including the United States, to investigate terrorist groups, especially JI, through both intelligence and law-enforcement channels. Singapore providedThailand information that ultimately led to the arrest in May of a Singaporean JI member inThailand. As a result of that investigation, Thai authorities also arrested several Thai citizens believed to be members of a JI cell plotting to blow up five embassies in Bangkok, including the US Embassy. Singapore provided key information that helped Thailand track down and arrest top JI leader Hambali in August and also facilitated video testimony of three of its ISA detainees in the Indonesian trial of JI spiritual leader Abu Bakar Bashir in August.

Thailand’s domestic and international counterterrorism efforts, which were bolstered in the wake of the deadly bombing in Bali, Indonesia, in October 2002, intensified during 2003. Prime Minster Thaksin Shinawatra publicly expressed the will of the Royal Thai Government to cooperate closely with the United States and other nations in fighting the global war on terror. In August,Thai authorities captured top JI leader with close ties to al-Qaida, Nurjaman Riduan bin Isomuddin (a.k.a. Hambali) in Ayutthaya, Thailand. In June and July,Thai authorities in southern Thailand arrested four men suspected of being either JI supporters or operatives. The four are implicated in a conspiracy to bomb a number of high-profile targets and tourist venues in Thailand including the embassies of the United States, United Kingdom, Israel, Singapore, and Australia.

In August, the King signed an emergency antiterrorist decree, giving the government powerful new legal tools to fight terrorism.There were no significant acts of terrorism in Thailand during 2003. The Thai Government’s effectiveness in precluding a terrorist incident during the APEC Summit in October was considered a major success both domestically and internationally.

Australia

Australia continued its strong counterterrorism stance in 2003, both domestically and abroad. Australia continues to contribute to the global war on terror in Afghanistan. Between September 2001 and June 2004, Australia expects to have contributed more than US $46 million in humanitarian and reconstruction assistance to Afghanistan. Australia has also made strong contributions to the US-led Coalition in Iraq, with more than 800 Australian Defence Force personnel in Iraq. Its commitment to Iraq’s stabilization and development continues across humanitarian, agricultural, and other economic sectors.

Canberra further improved its domestic counterterrorism arrangements and consultative mechanisms in 2003.The National Counterterrorism Committee completed a National Counterterrorism Plan in June.The Government also created a National Security Hotline, conducted a public campaign to ensure that Australians remain alert to the possible threat of terrorism, and formed the Business-Government Task Force on Critical Infrastructure. A National Security Division was established in the Department of Prime Minister and Cabinet to ensure a continued high level of coordination and reinforce a government-wide approach to terrorism and national security issues. Canberra also established the National Threat Assessment Centre to provide integrated assessment capability across the government.

In March, the Government created a position of Ambassador for Counterterrorism. Similar to the Coordinator for Counterterrorism in the United States, the Ambassador provides a focal point for coordinating, promoting, and intensifying Australia’s international counterterrorism efforts.

Underpinning Australia’s commitment to fighting terrorism is a detailed legislative response. In 2002, the Commonwealth Parliament created specific offenses for involvement in terrorist activities and terrorist organizations and designated 16 such terrorist groups as of December 2003. Parliament also provided additional powers to the Australian Security Intelligence Organisation in 2003.

The Parliament passed new measures in 2002 to deny terrorists the funds on which they rely, and during 2002 and 2003 specifically listed more than 400 terrorist-related individuals, entities, and organizations, including HAMAS and Hizballah. Australia has taken action to block transactions, accounts, and assets relating to persons or organizations identified as terrorists or the sponsors of terrorism, including those listed under US Executive Order 13224. Australia has a highly developed legal regime in place to combat terrorist financing. The Australian financial intelligence unit AUSTRAC has strengthened its network by signing a further ten Memoranda of Understanding (MOU) with other Financial Intelligence Units throughout the world in 2003, bringing the total to 24.AUSTRAC is also cooperating with the US counterpart, FinCEN, on financial intelligence.

Australia is helping countries in the Asia-Pacific region build their capacity to combat terrorism in areas such as law enforcement, border management, transportation security, intelligence, antiterrorist financing, and the development of legal regimes. In July, Prime Minister Howard announced a three-year $3.6 million package with the Philippines to support the building of counterterrorism capacity. Australia’s $7.2 million counterterrorism package to Indonesia is in the second of its four years. Australia spent $5.38 million specifically on building counterterrorism capacity throughout the entire Asia-Pacific region and expects to spend an additional $6.12 million this year.

Australia has broadened its network of bilateral counterterrorism arrangements in Southeast Asia, signing MOUs on cooperation to combat international terrorism with the Philippines, Fiji, Cambodia, East Timor, and India during 2003, bringing Australia’s network of MOUs to eight.These MOUs are umbrella arrangements that set out a framework for bilateral cooperation in law enforcement, defense, intelligence, customs, and immigration.

The MOU with the Philippines facilitated cooperation between the Australian Federal Police and the Philippine National Police, including in the investigation of the bombing in Davao City in the southern Philippines in March 2003, in which 17 were killed, including one US citizen. In Indonesia, the joint Australian and Indonesian police investigation into the Bali bombings in October 2002 that killed 202, including 88 Australians, is testimony to the successful combination of Australian and Indonesian investigative and forensic techniques—and a model for successful international cooperation to bring perpetrators of terrorism to justice. By November 2003, 36 suspects were in Indonesian custody. Among these, 29 had been convicted and an additional four were before the courts.

In the Pacific Islands, Australia has continued working with the region’s key political body—the Pacific Islands Forum—and with other regional entities such as the South Pacific Chiefs of Police Conference, the Oceania Customs Organization, and the Pacific Immigration Directors Conference, to reduce the possibility of countries in the region being exploited by terrorists and to combat organized crime.

The APEC Leaders’ Summit in 2003 endorsed two Australian counterterrorism-related initiatives: advance passenger information systems and development of a regional alert system. Australia is working hard in the Association of Southeast Asian Nations (ASEAN) Regional Forum to focus on the very real danger of terrorism and ways to counter it. In June 2003, Australia and Singapore co-hosted a seminar on managing the consequences of a major terrorist attack, which focused on practical measures that governments can take to recover from such an incident.

Australia is a party to 11 of the 12 international conventions and protocols relating to terrorism.

Burma

Burma maintained its solid position against international terrorism in 2003. The regime previously enacted, but has not yet implemented, an anti-money laundering law that could help block terrorist assets. The military government is fighting several low-intensity conflicts against ethnic insurgents.At least one of these groups is alleged to have ties to South Asian terrorist networks.

The junta has occasionally sought to portray insurgent attacks against infrastructure such as bridges and pipelines as terrorism, but there were no known acts of international terrorism during 2003. Dozens of improvised explosive devices exploded or were discovered in various locations throughout Burma in 2003.With the exception of two bombings of an oil pipeline claimed by the insurgent Karen National Union, there were no claims of responsibility for these acts. In March, two improvised explosive devices were found in Rangoon, one of which exploded and killed two municipal workers. The perpetrators’ identities and motives are unclear, but the junta arrested a number of anti-regime activists.

Burma is a party to seven of the 12 international conventions and protocols relating to terrorism and is a signatory to the International Convention for the Suppression of the Financing of Terrorism.

Cambodia

In May, Cambodian authorities arrested one Egyptian, two Thais, and one Cambodian suspected of being members of JI. The Government stated publicly that the group was plotting to conduct terrorist attacks in Cambodia.The group had been operating out of an Islamic school run by the Saudi Arabia- based NGO, Umm al-Qura, on the outskirts of Phnom Penh. The school was allegedly being used as a front for channeling al-Qaida money into Cambodia from Saudi Arabia. In addition to the arrests of the four, who remain in custody awaiting trial, the Cambodian Government shut down two branches of the Umm al-Qura Islamic School and deported 28 foreign teachers and their dependents.

In November, Cambodian authorities arrested seven members of the Cambodian Freedom Fighters, an antigovernment group, which was reportedly planning a terrorist attack in the southwestern town of Koh Kong.The suspects remain in custody while the government completes its investigation.

Although there were no acts of international terrorism on Cambodian soil in 2003, Cambodia recognizes that it is not immune from the problem of international terrorism and understands that it needs to work actively to counter the threat. The information leading to the arrest of the suspected JI members in the Umm al-Qura Islamic School and subsequent knowledge that Indonesian JI terrorist leader Hambali resided temporarily in Cambodia have hardened Cambodia’s attitude.

Cambodia’s ability to independently investigate potential terrorist activities is limited by a lack of training and resources. In addition, Cambodia’s lack of comprehensive and effective domestic legislation to combat terrorism is a serious constraint on the Government’s ability to arrest and prosecute terrorists.To address these deficiencies, the Cambodian Government has requested international assistance to upgrade its counterterrorism capabilities. Beginning in 2003, the government made significant headway in instituting computerized border control systems at Phnom Penh’s international airport.The Cambodian Government has also cooperated fully with US requests to monitor terrorists and terrorists entities listed as supporters of terrorist financing.

Phnom Penh has been vocal in condemning terrorist acts. Foreign Minister Hor Namhong, for example, issued a strongly worded statement condemning the bombing attack in October 2002 in Bali, Indonesia. Cambodia has actively participated in international counterterrorism forums. As ASEAN Chair from July 2002 to June 2003, Cambodia took the lead in coordinating ASEAN statements on terrorism, such as the Joint ASEAN-EU Declaration on Cooperation to Combat Terrorism and the relevant text in the Chairman’s Statement of the Tenth ASEAN Regional Forum released in June.

Cambodia is a party to four of the 12 international conventions and protocols relating to terrorism and is a signatory to the International Convention for the Suppression of the Financing of Terrorism.

China

China continues to take a clear stand against international terrorism and is broadly supportive of the global war on terror. Chinese officials at all levels regularly denounce terrorism, and China regularly participates in discussions of counterterrorism in both international and regional forums. For example, China actively participated in the SCO, assisting in the establishment of an SCO Counterterrorism Center in Tashkent, Uzbekistan, scheduled to begin operation in 2004, and engaging in SCO joint counterterrorism exercises in Kazakhstan and Xinjiang Province in August 2003.

China is supportive of diplomatic actions and efforts to block and freeze terrorist assets. China treats designations of terrorists under US Executive Order 13224 on an equal basis with those designated by the United Nations UNSCR 1267 Sanctions Committee.The United States and China hold regular counterterrorism consultations and expert-level consultations on curbing terrorist financing. The People’s Bank of China is in the process of establishing an Anti-Money Laundering Bureau, which will include a Terrorist Finance Investigative Department.

China displays a general willingness to cooperate with international terrorism investigations. Chinese authorities actively participated in the investigation of the case of the “Portland Six”—a group in Portland, Oregon, indicted on terrorism charges in October 2002—providing hotel records and other information that proved instrumental in obtaining guilty pleas from the defendants.

There were no acts of international terrorism committed in China in 2003. There were several reports, however, of bombings and bomb threats in various parts of China, although it is unclear whether these were politically motivated acts of terrorism or criminal attacks. Chinese authorities assert that terrorists, primarily based in Xinjiang Province, continue to operate on Chinese territory. On 15 December, for example, China’s Ministry of Public Security (MPS) issued a list of “East Turkestan” groups and individuals that the Chinese Government considers to be terrorist entities.The list includes four groups: the East Turkestan Islamic Movement (ETIM), the East Turkestan Liberation Organization (better known as SHAT), the World Uighur Youth Congress, and the East Turkestan Information Center.

The list also specifically names 11 individuals as terrorists, including the leaders of each of the above groups. The MPS stated that it has incontrovertible evidence that each listed group has organized and executed specific terrorist acts in Xinjiang and that these groups are all linked to each other and the al-Qaida network. Following the release of the list, the Chinese Government called for international assistance in China’s fight against these organizations and individuals, requesting that the assets of the groups be frozen, that the organizations be outlawed, and that countries stop supporting and financing them. Beijing also asked the international community to assist in the investigation, apprehension, and repatriation of the designated individuals. The US Department of State has designated the ETIM as part of the Department of State’s Terrorist Exclusion List and under Executive Order 13224 but has not designated the other three groups under US law.

China is a party to 11 of the 12 international conventions and protocols relating to terrorism and is a signatory to the International Convention for the Suppression of the Financing of Terrorism.

Indonesia

Indonesia continued its firm public stance against terrorism in 2003.The terrorist bombings in Bali on 12 October 2002 that killed 202—mostly foreign tourists—and the bombing of the J.W. Marriott Hotel in Jakarta on 5 August 2003 that killed 12 forced the Indonesian Government into action.The Government, led by the Indonesian National Police, has taken effective steps to counter the threat posed by the regional terrorist organization Jemaah Islamiya (JI), which has ties to al-Qaida. Indonesian police have arrested 109 suspected JI members—most in 2003—including suspects in the Bali attacks, the Marriott attack, and other criminal acts linked to terrorism.Those arrested included numerous senior JI leaders, a number of regional and subregional commanders, most of the masterminds of the Bali attack, several key planners of the Marriott bombing, former instructors at JI training camps, and financiers of terrorist attacks.

In a case symptomatic of persistent Indonesian domestic sensitivities, political pressures, and institutional weaknesses, however, the Government made little effort to investigate the activities and affiliations of six students suspected of terrorist involvement, who were deported from Pakistan in early December 2003 and released two within days of their repatriation.

Indonesia, hampered by weak rule of law, a poorly regulated financial system, and serious internal coordination problems, has not yet frozen any terrorist assets.The Government, however, did enhance its legal framework in September by passing amendments to its anti-money laundering law, which strengthened the government’s legal authority to combat terroristfinance. Indonesia has also created a financial intelligence unit with US assistance.

In March, Indonesia adopted a comprehensive antiterrorism law, defining various acts of terror and providing police and prosecutors with broader powers to combat terrorism such as extended pretrial detention periods and the use of electronic evidence in court. The Government, however, has been unwilling to ban JI, saying the organization never formally applied for recognition and thus cannot be prohibited. The absence of such a prohibition has impeded police and prosecutors in arresting and trying suspected terrorists and will most likely further hamper prosecutors’ efforts to put JI leaders behind bars.

On 2 September, the Central Jakarta District Court convicted the spiritual leader of JI, Abu Bakar Bashir, on treason and immigration charges.The panel of judges stated in its decision that the prosecutors had presented sufficient evidence to convince them of JI’s existence, its goal of overthrowing the Government of Indonesia, and Bashir’s involvement with the group. However, despite video-conference testimony from Bali bombers naming Bashir as the head of JI, judges were not convinced of his leadership role and sentenced him to only four years in prison. Both Bashir and the prosecution appealed the decision. In November, the court reduced Bashir’s sentence to three years, reversing the treason charge but upholding his conviction for document fraud and immigration violations.

The Indonesian judicial system undertook the trials of approximately 63 terror suspects in 2003, including 17 for involvement in the bombing of a McDonald’s restaurant and a car showroom in Makassar, South Sulawesi, in December 2002; as well as 46 members of JI for involvement in the church bombings on Christmas Eve 2000, the bombing of the Philippine Ambassador’s residence in Jakarta in August 2000, and the Bali and Marriott Hotel bombings. As of 1 December 2003, Indonesian courts had convicted a total of 50 terror suspects and acquitted two.Thirty-nine of these convictions were of suspects involved in the Bali bombings on 12 October 2002.Three key planners—Amrozi bin Nurhasyim, Abdul Ghoni (a.k.a. Mukhlas), and Abdul Aziz (a.k.a. Imam Samudra)—were all sentenced to death. Many others were given life in prison.

The numerous convictions and tough sentences handed down by the courts are a reflection of the Government’s seriousness in combating terrorism and its commitment to bring to justice those implicated in terrorist attacks in Indonesia. Fifteen terrorist trials remain under way, and many suspects await trial. At year’s end, Indonesian Police continued steadily to arrest suspected JI members and were devoting considerable resources to hunting JI bombmakers Azahari Hussein and Noordin Mat Top, as well as several other known fugitives.

Indonesia is a party to four of the 12 international conventions and protocols relating to terrorism and is a signatory to two additional conventions, including the International Convention for the Suppression of the Financing of Terrorism.

Japan

Japan continued its strong counterterrorism stance in 2003. Prime Minister Koizumi and numerous other senior officials have publicly declared their firm commitment to stand by the United States to combat terrorism over the long term. Japan’s significant rear-area support to Operation Enduring Freedom (OEF) in Afghanistan and strong statement of support for USled military action in Iraq bear out this commitment. In July 2003, the Japanese Diet passed the Iraq Reconstruction Assistance Law, which includes provision for dispatching the Japan Self-Defense Forces to Iraq to assist in reconstruction and humanitarian efforts. In October 2003, the Japanese Diet approved a two-year extension of the Anti-Terrorism Special Measures Law and another six-month basic plan, which stipulate the activities that the Japan Self-Defense Forces may perform in support of OEF. Japan provides approximately 40 percent of the fuel used by US naval forces engaged in OEF. Japan Air Self-Defense Force planes continued to provide transportation for US forces.

Japan actively participates in strengthening counterterrorism measures in various international and regional forums. In August 2003, Japan signed a mutual legal assistance treaty with the United States and plans to submit the treaty to the Diet for ratification in 2004. Once ratified, it will make cooperation in investigations and prosecution of terrorists easier. To help stem the flow of terrorist financing to al-Qaida and the Taliban, Japan designated under its asset-freezing program all entities and individuals included on the UN 1267 Sanctions Committee’s consolidated list.Tokyo announced in October 2003 that Japan will join the Advanced Passenger Information System, obliging Japanese officials to share information about departing international passengers with other participating countries, including the United States, Canada, Australia, and New Zealand.

Japan continues to make valuable contributions to building counterterrorism capacity among Asian countries. Japanese officials have led seminars on immigration control, aviation security, customs cooperation, export control, law enforcement, and terrorist financing. Japanese National Police Agency officials were dispatched to assist the Indonesian Police investigation following the Marriott Hotel bombing in Jakarta in August 2003. Japan had also dispatched criminal investigators to Indonesia in the wake of the terrorist attacks in Bali in October 2002. In addition, Japan is providing technical assistance to Southeast Asian countries working to create a system for monitoring terrorist financing. For example, Japan sponsored a seminar on establishing financial intelligence units for Southeast Asian countries in October 2003.

There were no incidents of international terrorism in Japan during 2003. Trials continue of members of the Aum Shinrikyo Group, a US-designated foreign terrorist organization,accused of perpetrating the sarin gas attack on the Tokyo subway system in 1995.The prosecution has requested the death penalty for Aum Shrinrikyo leader Matsumoto, and a ruling is expected in early 2004.Three suspects in the incident in 1995 remain at large.The Public Security Intelligence Agency is continuing its surveillance of the group through 2005, as authorized by the Public Security Commission in December 2002.

Japan is a party to all 12 international terrorism conventions and protocols relating to terrorism.

Laos

The Government of Laos has continued to support the global war on terrorism. Although the Government’s intentions regarding counterterrorism are positive, implementation of multilateral agreements is hampered by weak enforcement procedures and lack of control of areas outside the capital. The Government cooperated bilaterally on counterterrorism issues with the United States and other nations and multilaterally with the United Nations and the Association of Southeast Asian Nations.

Since Laos lacks distinct counterterrorism laws, the Office of the Prosecutor General plans to introduce amendments to existing criminal law, under which acts of terrorism fall, to make more explicit the descriptions of and punishments for terrorism-related crimes. In September, Lao courts sentenced two active-duty soldiers to life imprisonment for orchestrating a series of bombings in Vientiane in 2000 and 2002. Laos has continued to seek the extradition of 17 Lao citizens from Thailand suspected of involvement in an armed attack against a Lao customs checkpoint in the southern part of the country in July 2000.

Laos suffered many incidents of domestic terrorism in 2003, carried out by groups of unknown identity opposed to the Lao Government. Some of these terrorist incidents were ambush-style attacks against buses and private vehicles, resulting in the deaths of 34 civilians, and others targeted government officials, killing three Lao officials. A group calling itself the Free Democratic People’s Government of Laos claimed credit for at least one in a series of bombings in the latter half of the year that killed one person and injured several more.

The Bank of Laos continued to search government and commercial bank holdings for possible terrorist assets, as identified by US-provided lists of terrorist organizations and individuals, and has issued freeze orders for assets of organizations and individuals named on these lists.The Bank, however, had yet to take steps to report on Government compliance with UNSCR 1373 or to require the freezing of the assets of individuals and entities associated with Usama Bin Ladin, members of al-Qaida, and members of the Taliban as included on the UNSCR 1267 Sanctions Committee’s consolidated list, as required by mandatory provisions of UN Security Council resolutions.

Laos is a party to seven of the 12 international conventions and protocols relating to terrorism but has not yet become a party to the International Convention for the Suppression of the Financing of Terrorism.

Malaysia

On 1 July, Malaysia established a Southeast Asia Regional Center for Counterterrorism (SEARCCT). SEARCCT is expected to focus on regional training, information sharing, and public awareness campaigns. In August, SEARCCT hosted a training program sponsored by the US Treasury’s financial intelligence unit, FinCEN, and Malaysia’s Central Bank (Bank Negara) on combating terrorist financing. Other nations, including the United Kingdom, Germany, and Australia, are also expected to provide trainers and training materials to the center. Malaysia assisted Indonesian efforts to prosecute terrorist suspects by making video testimony from suspects in Malaysian custody available to Indonesian prosecutors.

Malaysia has detained more than 100 suspected terrorists under the Internal Security Act (ISA) since May 2001. Malaysia issued 10 and renewed 11 two-year detention orders for terrorist suspects in 2003. On 10 November, 13 Malaysian terrorist suspects were held under 60-day detention orders upon their return from Pakistani custody. Eight of these suspects have been released. In August, the Malaysian Government chose not to renew a detention order for Muhammad Iqbal (a.k.a. Abu Jibril) an Indonesian national and terrorist suspect, seeking instead to deport him to Indonesia. At year’s end, Iqbal remained in Malaysian custody.

Malaysia has responded quickly to UN Security Council requirements to prohibit terrorist financing and freeze the accounts of named entities. In November, Malaysia’s Parliament amended its anti-money laundering legislation of 2001 to include terrorist activity as a predicate offense. Parliament also amended the penal and criminal procedure codes to increase penalties for terrorist acts, allow for the prosecution of individuals who provide material support for terrorists, expand the use of wiretaps and other surveillance of terrorist suspects, and permit video testimony in terrorist cases.

On 24 September, Malaysia deposited the instruments of ratification for two international antiterrorism conventions: the International Convention for the Suppression of Terrorist Bombings and the Convention on the Prevention and Punishment of Crimes against Internationally Protected Persons. Malaysia is a party to three additional international conventions and protocols relating to terrorism and is a signatory to the Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation. It has not yet become a party to the International Convention for the Suppression of the Financing of Terrorism.

In March, Malaysian police announced the discovery of four tons of explosive ammonium nitrate fertilizer often used in truck bombs. According to press reports, the ammonium nitrate had been purchased in September 2000 by ex-Army captain and scientist,Yazid Sufaat, who is currently under ISA detention for allegedly being involved in JI activities. The chemicals were to have been used by JI in Singapore to make truck bombs to attack foreign embassies and other Western targets.

New Zealand

New Zealand appointed its first Ambassador for Counterterrorism in September to consolidate and build upon the measures taken since the attacks of September 11 and to ensure New Zealand has a stronger capacity to develop and implement policies on global terrorism and related security issues. In October, the New Zealand Parliament passed new antiterrorism laws that will allow the Government to investigate, detect, and prosecute terrorist activities more effectively. The laws create new offenses to address terrorist threats, empower the New Zealand Police and Customs Officials to investigate and prosecute those offenses, and bring

New Zealand into full compliance with its UN obligations. New Zealand continues to support Operation Enduring Freedom. It deployed troops to Iraq and Afghanistan to participate in the reconstruction efforts and pledged to provide humanitarian aid, as well as keeping its previous commitment of sending a frigate and a P-3 Orion to the region.

New Zealand is a party to 11 of the 12 international conventions and protocols relating to terrorism and is a signatory to the Convention on the Physical Protection of Nuclear Materials.

Philippines

The Philippines continues to be an outspoken supporter of the global Coalition against terrorism and has been swift and direct in condemnation of terrorist acts, both domestic and international.

The Philippines was the victim of a number of terrorist attacks in 2003, including the car-bomb attack on 21 February adjacent to a military airfield in Cotobato, on the southern island of Mindanao; the bombing on 4 March at the International Airport in Davao, Mindanao, that killed 17 (including one US citizen); the Sasa Wharf bombing on 2 April also in Davao that killed 15; a series of bombings in Koronadal City, Mindanao, which took more than 15 civilian lives; as well as a number of kidnappings-for-ransom operations.

The Philippines faces threats from internal terrorism on several fronts.The United States, for example, has listed four indigenous groups as Foreign Terrorist Organizations—the Abu Sayyaf Group (ASG), the Communist Party of the Philippines/ New People’s Army, Alex Boncayo Brigade, and the Pentagon Gang.

In her speech to the UN General Assembly in September, Philippine President Gloria Macapagal-Arroyo noted that growing international coordination and cooperation is countering the global threat of terrorism. She further emphasized that the Philippines is working with other heads of state to ensure continued cooperation in the battle to rid Southeast Asia of the terrorist threat. During the ASEAN postministerial conference held in Phnom Penh, Cambodia, in June, Philippine Foreign Secretary Ople expressed the desire of ASEAN to reinforce collaboration with its dialogue partners, highlighting the area’s capacity building and training in law enforcement.

The Government of the Philippines created a multiagency counterterrorism task force chaired by the National Security Advisor and consisting of officials from 34 Philippine Government agencies representing the security, economic, and social components essential for an effective counterterrorism strategy. In October, President Arroyo appointed former Defense Secretary Angelo Reyes to a newly created cabinetlevel position, Ambassador-at-Large for Counterterrorism. The Philippines also established a task force on protection of critical infrastructure chaired by the Undersecretary of the Presidential Office of Special Concerns.

Philippine authorities made several significant arrests of suspected terrorists in 2003. In May, security forces arrested Saifullah Yunos (a.k.a. Muklis Yunos), a subcommander of the separatist MILF. During his arraignment in July, Yunos entered a guilty plea for his involvement in the explosion on a Manila commuter train on 30 December 2000 that killed 22 people. In October, JI operative Taufek Refke was arrested at a JI safehouse in Cotabato City, on the southern island of Mindanao. Police reportedly recovered manuals on bombmaking and chemical-biological warfare. In December, Philippine Armed Forces captured ASG commander Ghalib Andang (a.k.a. “Commander Robot”) on the southern island of Jolo. Andang was the leader of one of the main ASG factions and is responsible for numerous kidnappings and bombings during the last decade, including the kidnapping in April 2000 of Western tourists from the Malaysian resort of Sipadan.

In February, the Philippine Armed Forces overran a base area of the separatist MILF near the town of Pikit on the southern island of Mindanao. Manila claimed that criminals, including the notorious Pentagon Gang, found refuge and protection in the area.Thousands of civilians were displaced as a result of the ensuing days of fighting.

In August, the Philippines sent 96 members of the Philippine Humanitarian Contingent to Iraq to assist in Coalition reconstruction efforts. Philippine officials remained steadfast in word and deed to contribute troops—even in the wake of the terrorist bombing of the UN compound in Baghdad that same week that killed two of their countrymen. If additional funding is available, Manila plans to send 79 additional members and extend the contingent’s stay longer than the planned six months.

Despite its overall positive record, the Philippines continues to face setbacks and challenges on the counterterrorism front. In July, senior Indonesian JI operative Fathur Rahman al-Ghozi escaped from Philippine National Police headquarters in Manila along with two suspected ASG members, Omar Opik Lasal and Abdulmukim “Mukim” Idris. Originally detained in the Philippines in January 2002, al-Ghozi was serving a 17-year prison sentence. Al-Ghozi was eventually killed in a shootout with Philippine security forces in North Cotabato Province on Mindanao on 12 October. Philippine Armed Forces shot and killed Idris on 7 August in Lanao del Norte Province on Mindanao and captured Lasal on 7 October in North Cotabato Province in Mindanao.

For the second straight year, the Philippines failed to enact new antiterrorism legislation in 2003. Major evidentiary and procedural obstacles in the Philippines hinder the building of effective terrorism cases, such as the absence of a law defining and codifying terrorist acts and restrictions on gathering of evidence. Generic problems in the law enforcement and criminal justice systems also hamper bringing terrorists to justice in the Philippines. Among them: low morale, inadequate salaries, recruitment and retention difficulties, and lack of cooperation between police and prosecutors.

Tracking terrorist financing continues to pose a problem to prosecuting cases. Poor communication between Philippine law enforcement agencies and the Anti-Money Laundering Council (AMLC) remains an impediment to effective implementation of the Anti-Money Laundering Act amended in March 2003.The amendments to the Act granted Central Bank personnel unfettered access to deposit accounts. However, the Central Bank and the AMLC face logistic challenges due to the lack of information technology platforms to collect and process covered transaction reports. Although the amendments addressed international Financial Action Task Force (FATF) concerns about the Philippines legal and regulatory framework, the Philippines remains on the FATF’s list of noncooperating countries and territories (NCCT). Removal from the NCCT list awaits the adoption of an antimoney laundering implementation plan and corresponding actions.

In October, the Philippine Government ratified the remaining six of the 12 international conventions and protocols relating to terrorism.

Singapore

Singapore continued its strong public and private opposition to terrorism and maintained vigorous counterterrorism action in bilateral and multilateral contexts. There were no acts of international or domestic terrorism in Singapore in 2003, although authorities continued their investigation and detentions of members of the JI Southeast Asian regional terrorist network, which had plotted to carry out attacks in Singapore in the past.

Singapore did not announce any new domestic terrorist arrests in 2003, although four of its citizens who are terrorist suspects—believed to be members of JI—were repatriated. All four men are being held under the Internal Security Act, bringing the total number of JI-related detainees to 35. Singapore officials stated publicly that while JI continues to pose a threat in the rest of the region, in Singapore, the JI threat has been significantly minimized since Singapore is believed to have been successful in identifying and breaking up the JI operational cells that had been active in the city-state.

During 2003, Singapore continued its cooperation with a variety of governments, including the United States, to investigate terrorist groups, especially JI, through both intelligence and law enforcement channels. Singapore provided Thailand information that ultimately led to the arrest in May of a Singaporean JI member in Thailand, Arifin bin Ali. As a result of that investigation,Thai authorities also arrested several Thai citizens believed to be members of JI. Singapore authorities later stated that they had conveyed to Thailand information from Arifin that the JI group intended to blow up five embassies in Bangkok, including the US Embassy.

Singapore also provided key information that helped Thailand track down and arrest top JI leader Hambali in August. In February, a tipoff from Singapore led to the arrest of Singapore citizen and alleged leader of JI in Singapore, Mas Selamat Kastari, on the Indonesian island of Batam, near Singapore. Kasteri is alleged to have planned to hijack a plane and crash it into Singapore’s Changi Airport. Singapore also facilitated video testimony of three of its ISA detainees in the Indonesian trial of JI spiritual leader Abu Bakar Bashir in August. Singapore designated both the United States and the United Kingdom in May as “prescribed” countries under the terrorist financing law of 2002.This step allows Singapore to respond to requests for information on terrorist financing.

Singapore’s new export-control law, which went into effect on 1 January, represents a major step forward. Though largely aimed at preventing proliferation of weapons-of-massdestruction (WMD) goods to governments, the new framework may also assist in preventing such materials from fallings into the hands of terrorists. In March, Singapore became the first port in Asia to begin operations under the US Container Security Initiative. Singapore officials have expressed strong concern about maritime security in nearby waters, especially the Strait of Malacca.These concerns include terrorist threats as well as pirate and other criminal attacks. Singapore has stepped up security within its own waters and also its efforts to work with other countries.

Singapore actively participated in counterterrorism efforts through various international forums, including the ASEAN Regional Forum in June, the APEC Leaders Summit in October, and the Commonwealth Heads of Government Meeting in December. In addition, Singapore hosted and cosponsored with the United States a January workshop on measures to cut off terrorist financing. Attendees at the workshop included representatives of ASEAN states and Pacific Island Forum members, the UN Counterterrorism Committee, the FATF, and the Asia-Pacific Group on Money Laundering. During 2003, Singapore ratified the International Convention for the Suppression of the Financing of Terrorism and the Convention on the Marking of Plastic Explosives for the Purpose of Detection. In November, Singapore passed legislation to enable it to implement the Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation; at year’s end, it had not signed the convention.

Singapore’s port and air bases continued to be available to transiting military forces engaged in the global war on terrorism, including those of the United States. In November, a Singapore Landing Ship Tank began a deployment to assist Coalition efforts in Iraq; Singapore has also pledged a C-130. During President Bush’s October visit, Singapore and the United States announced plans to conclude a “Strategic Framework Agreement” on defense and security. In addition to military-to-military cooperation, the statement noted that the agreement was expected to increase cooperation against terrorism and proliferation.

Singapore is a party to six of the 12 international conventions and protocols relating to terrorism.

Taiwan

Taiwan has supported the global war on terrorism and continues to take steps to improve its counterterrorism laws and regulations, port and container security, and terrorist finance legislation. At a ministerial meeting in June 2003 of the Asia-Pacific Economic Cooperation Forum, Taiwan’s Economic Minister voiced Taiwan’s strong support for counterterrorism efforts in the Asia-Pacific region, which focused on plans to enhance security measures in airplanes, airports, ships, and harbors.

In October, the Cabinet approved a draft law that would mandate the formation of a task force to coordinate terrorism prevention measures and provide an integrated legal framework for counterterrorism efforts. The proposed legislation also would grant special powers for telecommunication surveillance, provide measures to check the identity of terrorists, inspect transportation equipment, and confiscate the property or assets of suspected terrorists.

The United States and Taiwan continued negotiations on the Department of Homeland Security’s Container Security Initiative, which aims to protect containerized shipping from exploitation by terrorists.Taiwan operates one of the busiest container ports in the world and has been identified by Homeland Security as one of the top 20 foreign ports for implementation of the initiative.

Taiwan also has been working to identify financial assets controlled or utilized by international terrorists, but to date, no terrorist assets have been located in Taiwan.

Thailand

Thailand’s domestic and international counterterrorism efforts, which were bolstered in the wake of the deadly bombing in Bali, Indonesia, in October 2002, intensified during 2003. Prime Minster Thaksin Shinawatra publicly expressed the will of the Royal Thai Government to cooperate closely with the United States and other nations in fighting the global war on terror. In August, Thai authorities captured top JI leader with close ties to al-Qaida, Nurjaman Riduan bin Isomuddin (a.k.a. Hambali) in Ayutthaya, Thailand. Hambali’s capture serves as a major blow to both JI and al-Qaida and represents a significant victory in the war on global terror.

In June and July,Thai authorities in southern Thailand arrested four men suspected of being either JI supporters or operatives. The four are implicated in a conspiracy to bomb a number of high-profile targets and tourist venues in Thailand, including the Embassies of Australia, Israel, Singapore, the United Kingdom, and the United States. Court hearings for the four began in November, although a decision is not expected until 2004.

In August, the King signed an emergency antiterrorist decree, giving the Government powerful new legal tools to fight terrorism. These measures establish the criminal offense of terrorism in the penal code and make that offense a predicate under the Anti-Money Laundering Act. The executive decree was approved after nearly two years of parliamentary consideration. Although existing legislation does not cover terrorist financing, Thailand is planning to expand its Anti-Money Laundering Act to include terrorism. The Government and Thailand’s central bank continued to cooperate closely with the United States on reviewing and disseminating lists of persons blocked under US Executive Order 13224.To date,Thailand has not identified any entities on the list, and no assets have been blocked or frozen.

As Thailand continues to expand its government-togovernment cooperation with other ASEAN states, it is becoming more difficult for members of regional terrorist organizations to move from country to country while evading national law enforcement agencies.Thailand is a participant in the new Southeast Asia Center for Counterterrorism based in Malaysia. As host of the APEC Leader’s Summit in October 2003, Thailand was instrumental in persuading APEC members to adopt the “Bangkok Goals,” which place security concerns on an equal footing with the economic objectives that previously dominated this forum.

Throughout most of 2003, Thailand provided 130 military engineers and medical personnel to Bagram, Afghanistan, in support of Operation Enduring Freedom. Thailand has also dispatched engineers to Iraq to help with reconstruction tasks there.

Thailand is a major recipient of the US Anti-Terrorism Assistance program, with numerous Thai police and security officials participating in US-sponsored training courses since 1995. Thailand is also working closely with the United States to enhance the security of its borders by upgrading to more effective, state-of-the-art controls.

There were no significant acts of terrorism in Thailand during 2003.The Thai Government’s effectiveness in precluding a terrorist incident during the APEC Summit in October was considered a major success both domestically and internationally.

Thailand is a party to four of the 12 international conventions and protocols relating to terrorism and is a signatory to the Convention for the Suppression of the Financing of Terrorism.

Eurasia Overview

Central Asia, which for years had suffered attacks from Afghanistan-based guerilla and terrorist groups, saw no masscasualty terrorist attacks in 2003. The operations of the Islamic Movement of Uzbekistan (IMU), a group on the US Foreign Terrorist Organization list that seeks to overthrow the Government of Uzbekistan and create an Islamic state, were seriously disrupted when some of its leaders and many of its members were killed in Afghanistan fighting with the Taliban against Coalition forces in 2001 and 2002. The IMU has been incapable of significant military operations since the beginning of Operation Enduring Freedom (OEF), and, with the help of outside training and financing, has switched primarily to terrorism. Law enforcement and counterterrorism actions by Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan disrupted IMU operations, led to arrests and prosecutions, and prevented planned attacks on US interests.

Russia, however, continued to be the target of terrorist attacks in 2003 carried out by Chechen terror groups that have adopted suicide/homicide bombing techniques, including the use of young women as bombers. The three largest such attacks resulted in more than 40 deaths each. In addition, venues in Moscow were attacked, including Red Square and a rock concert six miles from the Kremlin. The Moscow attacks killed 22 and injured several dozen as the perpetrators sought to sow terror in the capital.

States in the region continued to provide overflight and temporary basing rights; share law-enforcement and intelligence information; and identify, monitor, and apprehend al-Qaida members and other terrorists. Countries in the region also took diplomatic and political steps to contribute to the international struggle against terrorism, such as becoming party to some or all of the 12 United Nations international conventions and protocols relating to terrorism.

Enhancing regional counterterrorism cooperation has been a priority for the United States. Toward that end, the US Department of State’s Coordinator for Counterterrorism, working closely with the Bureau of European and Eurasian Affairs, hosted the Fifth Counterterrorism Conference for Eurasian states inVienna, Austria, in June 2003. Participants included most of the countries of Eurasia,Turkey, and the Organization for Security and Cooperation in Europe (OSCE). Delegations consisted of officials from the ministries of Foreign Affairs, Health, Defense, and Interior and the intelligence services. The conference consisted of a tabletop exercise based on a bioterrorism incident (the intentional release of pneumonic plague at a major international soccer match). Exercise groups concentrated on the broad range of public health, law enforcement, political-military, socioeconomic, and human rights issues, emphasizing the need for interdisciplinary communication, cooperation, and advance planning. The basic structure of the conference provided participants an opportunity to describe and identify components of their national programs to respond to a bioterrorism attack and make recommendations to their head of state to deal with the situation presented in the exercise scenario.

The United States also participated in the OSCE’s first Annual Security Review Conference in June 2003, bringing in Ambassador Cofer Black as a keynote speaker. Also in the context of the OSCE, the United States led the drive to adopt a Ministerial decision committing OSCE-participating states to adopt International Civil Aviation Organization travel document standards by December 2005 or as soon as technologically and financially feasible.

Armenia

Armenia was a full and active participant in the global Coalition against terrorism in 2003 and is in the process of strengthening its domestic antiterror legislation. Armenian officials, including the president, issued repeated statements condemning terrorism and supporting the United States and the global Coalition against terrorism. Armenia provides no support for international terrorism or for any international terrorist group and has made no statements in support of terrorism or of a terrorism-supporting country. Armenia maintains diplomatic and economic relations with two countries on the US State Sponsors of Terrorism List—Iran and Syria. Iran and Syria have large ethnic Armenian populations.

Armenia was very cautious in public statements regarding the war with Iraq, due primarily to a substantial ethnic Armenian population in that country, but has since volunteered military units for postwar reconstruction.The Government also offered engineering and medical forces to stability operations in Iraq.

There were no actions before the Armenian judicial system in 2003 regarding international terrorism or acts of terror against US citizens or interests nor were there any new actions initiated regarding domestic terrorism. A new Armenian criminal law more clearly defining terrorist acts replaced Soviet-era legislation in 2003. Other legislation on terrorism and terrorist finance currently pending in the National Assembly should strengthen the ability of the Government to prosecute terrorist-related offenses. Five participants in the terrorist attack against the Armenian Parliament that killed Prime Minister Vazgen Sargsian, Speaker Karen Demirchian, and six other Government officials on 27 October 1999 were sentenced to life imprisonment in December 2003.They will be denied amnesty under a new law signed by President Robert Kocharyan on 26 November.

The Armenian National Assembly is also considering laws establishing an intergovernmental antiterrorism center and combating terrorist financing and money laundering.The Government strongly supports the legislation.The antiterrorism center will serve as a central government body to develop a national antiterror strategy and to coordinate the antiterrorism efforts of government ministries.The National Assembly also passed an export-control law in October 2003, which could assist efforts to monitor the export of dual-use goods. The Armenian Central Bank has acted under the authority of the new criminal code to freeze the assets of designated terrorist entities.

The Armenian Government did not extradite or request the extradition of any suspected terrorists during the year. Armenia does not have mutual legal assistance treaties with most nations, including the United States, although criminal suspects have been sent to the United States for trial on a case-by-case basis.

Armenia is a party to six of the 12 international conventions and protocols relating to terrorism and has signed a seventh.

Azerbaijan

Cooperation between Azerbaijan and the United States on counterterrorism is longstanding and has intensified since the September 11 attacks. Azerbaijan has turned over approximately 32 foreign citizens with suspected ties to terrorists, including eight to Egypt and three to Saudi Arabia, and has aggressively prosecuted members of suspected terrorist groups. It has also joined 10 European conventions on combating terrorism, and President Heydar Aliyev instructed his Government to implement UN Security Council Resolutions 1368, 1373, and 1377.

In August 2003, 150 Azerbaijani soldiers joined the peacekeeping contingent in Iraq. A platoon of Azerbaijani soldiers has been working with the Turkish peacekeeping contingent in Afghanistan since November 2002. Azerbaijan maintains diplomatic relations with Iran, which is on the US State Sponsors of Terrorism List.

During the past two years, the Azerbaijan Government has stepped up its effort to combat terrorist financing, including distribution of lists of suspected terrorist groups and individuals to local banks. In May 2003, the Government created an interministerial task force on money laundering and financial crimes, which will develop a government-wide strategy to combat financial crimes, including the financing of terrorism. It will also establish a financial intelligence unit. In January 2003, Azerbaijan revoked the registration of the Benevolence International Foundation, a designated financier of terrorism, after having frozen the organization’s bank accounts. The Justice Ministry also revoked the registration of two other Islamic charities—the Kuwait Fund for the Sick and the Qatar Humanitarian Organization—for activities against the national interests of Azerbaijan.

The government also approved changes to the criminal code that increased the maximum penalty for acts of terrorism from 15 years to life imprisonment and added a provision making the financing of terrorist activities a crime under Azerbaijani law. Azerbaijan has deported numerous terrorists and persons suspected of having ties to terrorists and closed three Islamic organizations that were suspected of supporting terrorist groups. Members of Jayshullah, an indigenous terrorist group, who were arrested in 2000 and tried in 2001 for plotting to attack the US Embassy in Baku, remain in prison.

While Azerbaijan has served as a route for international mujahidin with ties to terrorist organizations seeking to move men, money, and materiel throughout the Caucasus, it has had some success in reducing their presence and hampering their activities. In May 2002, the Government convicted seven Azerbaijani citizens who, intending to fight in Chechnya, received military training in the Pankisi Gorge in Georgia. Four received suspended sentences, and the others were sentenced to four-to-five years in prison. Throughout 2003, Azerbaijan made successful and significant efforts to prevent international terrorists from transiting Azerbaijani territory.

Azerbaijan is a party to eight of the 12 international conventions and protocols relating to terrorism.

Georgia

The Georgian Government remained deeply committed to combating international and domestic terrorism and has consistently and publicly condemned acts of terror. Georgia has not engaged in any form of support for international terrorism, terrorists, or terrorist groups and has not made any public statement in support of any terrorist-supporting country. The Government frequently expresses full support for the global war on terror and expresses sympathy and support to those individuals and countries victimized by terrorist attacks. Georgia maintains diplomatic relations with Iran, which is on the US State Sponsors of Terrorism List.

Although Georgia prosecuted no acts of international or domestic terrorism in 2003, the Georgian Government is fully committed to prosecuting individuals who engage in terrorist activities. In 2003, Georgia extradited several Chechen fighters arrested in Georgia to Russia.

Throughout 2003, the Georgian Government took significant strides to support US-led efforts in the war against terrorism. Specifically, the Government demonstrated its willingness to provide the United States with information related to possible terrorist activities in Georgia. In support of Georgia’s counterterrorism efforts, the United States continued to fully fund and support the Georgia Train and Equip Program (GTEP). GTEP supports the training of four Georgian army battalions and a mechanized company, plus training in tactics for operations against terrorists for smaller numbers of Interior Ministry troops and border guards. Georgia is still used to a limited degree as a terrorist transit state, although much less so since the Georgian crackdown on the Pankisi Gorge in late 2002.

In August 2003, the Georgian Government sent 70 military personnel for a six-month deployment to Iraq in support of Coalition operations. In February 2004, 200 GTEPtrained servicemen will replace these personnel. Georgian law-enforcement and security authorities continued to maintain a presence in the Pankisi Gorge throughout 2003.

Georgia is a party to six of the 12 international conventions and protocols relating to terrorism.

Kazakhstan

The Government of Kazakhstan has been publicly outspoken in support for the fight against terrorism and categorically denounces acts of terrorism. Kazakhstan is a member of the Shanghai Cooperation Organization along with China, Russia, Tajikistan, Uzbekistan, and Kyrgystan. Kazakhstan maintains diplomatic relations with Cuba, North Korea, Libya, the Palestinian Authority, Sudan, and Iran.

Under the terms of a Memorandum of Understanding of 2002, Kazakhstan allows Coalition forces the use of Almaty International Airport for emergency flight diversion in support of OEF. Since December 2001, Kazakhstan has also allowed more than 1,100 overflights in support of OEF at no cost. In the summer of 2003, Kazakhstan sent a 27-member military engineering and ordnance-disposal contingent to Iraq. In 2003, representatives of Kazakhstan successfully completed an introductory two-year program consisting of 14 courses offered by the antiterrorism training assistance office of the State Department’s Bureau of Diplomatic Security.

Kazakhstan is a party to 11 of the 12 international conventions and protocols relating to terrorism.

Kyrgyzstan

Kyrgyzstan in 2003 remained a dependable and outspoken ally in the global war on terrorism, hosting Coalition forces engaged in OEF and taking political, legislative, and law enforcement initiatives to disrupt and deter terrorism. President Akayev has staunchly defended the US presence within Kyrgyzstani borders. In 2001, the Kyrgyzstani Government authorized the construction of a Coalition base adjacent to the existing Manas airport near the nation’s capital of Bishkek, in support of OEF. The base currently hosts approximately 1,100 Coalition forces. In 2003, this included soldiers from the United States, Denmark, Italy, the Netherlands, South Korea, and Spain.The base is used for combat support, transport, refueling, tanker and cargo shipments, and ground operations in Afghanistan.

President Akayev proclaims that antiterrorism efforts are of extremely high priority for Kyrgyzstan and noted that terrorism is not only a threat to Kyrgyzstan but to regional and international security as well. In September 2003, a Russian airbase was opened near the village of Kant, approximately 20 miles from Bishkek. The base was constructed under the auspices of the Collective Security Treaty Organization (CSTO) and is used for security and antiterrorism efforts for CSTO members Russia, Armenia, Belarus, Tajikistan, Kazakhstan, and Kyrgyzstan.

Kyrgyzstan is a member of the Shanghai Cooperation Organization (SCO) with China, Russia, Kazakhstan, Tajikistan, and Uzbekistan.The SCO voted to create an antiterrorism center in Bishkek in 2003. Although the location of this center was later changed to Tashkent, Uzbekistan, Kyrgyzstan has provided logistic support for its creation.

Kyrgyzstan suffered one deadly act of terrorism in 2003. In May, militants from the IMU bombed a currency exchange in Osh, killing one man.

An attack in March on a bus traveling between Kyrgyzstan and China killed 21 people, including 19 Chinese citizens. This incident is still under investigation and may have been terrorism or crime related.

Kyrgyzstan’s courts in February sentenced Sherali Akbotoyev, a captured Kyrgyzstani member of the IMU, to 25 years in prison for violating six articles of the Kyrgyzstani criminal code, including his involvement in armed attacks against Kyrgyzstani military forces during the IMU incursions of 1999 and 2000. In November, the Kyrgyzstani Supreme Court banned four groups, including the East Turkestan Islamic Movement, enabling the state to lawfully seize its property.

Security forces in Kyrgyzstan played a major role in combating terrorism in 2003, successfully disrupting terrorist operations reportedly aimed at US interests. Security authorities in May detained five IMU operatives whom they later determined had conducted the terrorist bombing in December 2002 at the Oberon Market in Bishkek that killed seven people and the Osh currency-exchange bombing in May 2003. Kyrgyzstani authorities worked closely with Uzbekistani authorities to disrupt the cell and provided information that helped Uzbekistan capture one of the cell’s members in Andijan, Uzbekistan. In November, Kyrgyzstani authorities announced that they had detained three suspects who had been planning an attack on US interests.

Kyrgyzstan’s military and internal forces worked to improve their counterterrorism capabilities and to expand their cooperation with regional partners in 2003. In March, Kyrgyzstan’s Interior Ministry conducted counterterrorism exercises in the southern part of the country and, in July, seized a cache of hidden weapons in the Batken region. Bishkek also moved to bolster the security of the nation’s borders from terrorists, announcing in March it would increase the number of border checkpoints and in September that border troops, working jointly with border forces from neighboring Tajikistan, would operate together to identify mountain paths used by terrorists. Kyrgyzstan is party to nine of the 12 international conventions and protocols relating to terrorism.

Russia

Russia pursued several major domestic and global counterterrorism initiatives in 2003, sustaining its key role in the global war on terrorism. Russian political, legislative, and law enforcement efforts supported international cooperative efforts and a number of successful domestic terrorist prosecutions. Russian attitudes toward terrorism, however, continue to be influenced by the ongoing war in Chechnya. Local insurgents in the North Caucasus remained the greatest terrorist threat to Russia and were responsible for the murder of hundreds of Russian citizens, civilians as well as military. There is evidence of a foreign terrorist presence in Chechnya, although much of the actual terrorist activity there is homegrown and linked to the Chechen separatist movement.

Russia passed several new antiterrorism laws, began implementing previously passed legislation, and facilitated effective interdiction of terrorist finance flows by becoming a full member of the Financial Action Task Force (FATF). In February, the Russian Supreme Court issued an official Government list of 15 terrorist organizations, the first of its kind in Russia and an important step toward implementation of counterterrorism statutes. Following the promulgation of the list, the 15 organizations were prohibited from engaging in any financial activities.

Some proposed Russian counterterrorism legislation has stirred controversy. Duma-drafted amendments to the 1991 “Law on Mass Media,” designed to restrict the dissemination of information that could be useful to terrorists, were vetoed by President Putin in November 2002 following criticisms that they unduly restricted freedom of the press. A longpromised redrafting of the media law, prompted by Kremlin criticism of the role played by some media outlets during the Dubrovka Theater hostage crisis of October 2002, has yet to occur.

Examples of noteworthy law enforcement and judicial actions undertaken by Russia in 2003 include:

■ Zaurbek Talkhigov was sentenced to eight and a half years incarceration in June for tipping off terrorists about police attempts to rescue hostages during the siege of the Dubrovka Theater in 2002.

■ Failed suicide bomber Zarema Muzhikhoyeva was arrested after attempting to detonate a bomb in a Moscow cafe. An explosives ordnance disposal officer was killed trying to disarm the explosives she had been carrying.

■ Ayyub Katayev and Magomed Gakayev were convicted of banditry and possession of illegal weapons in connection with their participation in a terrorist attack in January 2001 on a Doctors Without Borders convoy in Chechnya. The two were also charged with kidnapping US citizen Kenneth Gluck, the head of Doctors Without Borders, but were later acquitted.

■ Sergei Chochiyev was convicted and sentenced to 15 years incarceration in October for kidnapping a United Nations aid worker in 1998 on behalf of Chechen insurgents.

Russia’s international efforts have focused on building multilateral support for counterterrorist actions and strengthening the international legal basis for such cooperation.

At the United Nations, Russia cosponsored a draft General Assembly resolution on human rights and terrorism in November 2003. Russia also submitted the names of Chechen rebels Zelimkhan Yandarbiyev and Shamil Basayev, in June and August respectively, for inclusion on the UNSC Resolution 1267 Sanctions Committee list of designated terrorists for their links to al-Qaida.The United States joined Russia in submitting Basayev’s name to the sanctions committee, and Secretary Powell designated both as foreign terrorists under Executive Order 13224.

After Secretary of State Powell designated The Islamic International Brigade, the Special Purpose Islamic Regiment, and the Riyadus-Salikhin Reconnaissance and Sabotage Battalion of Chechen Martyrs as terrorist organizations in February 2003, the five permanent members of the UN Security Council, along with Spain and Germany, jointly submitted the names of the three Chechen groups to the 1267 Sanctions Committee—the first time that the permanent members made such a joint submission on a terrorist designation.

Russia used its leadership in the Commonwealth of Independent States (CIS) and the CSTO to push for expanded counterterrorist operations. It also sought the establishment of a counterterrorism center in Central Asia. Russia also worked through the SCO to support creation of a joint antiterrorism center in Tashkent in 2004.

Russian policymakers continue to believe that the NATORussia Council can play a role in counterterrorism cooperation and the prevention of the proliferation of weapons of mass destruction. Russia hosted the first-ever Moscow meeting of the NATO-Russia Council in May 2003, which focused on developing concrete joint antiterrorism training projects and operations.

Russia maintains diplomatic relations and historically good ties with all the states on the US State Sponsors of Terrorism List. For example, Russian Foreign Minister Igor Ivanov paid a working visit to Syria in July 2003, and Hassan Rohani, secretary of the Supreme National Security Council of Iran, visited Moscow in November 2003. Although Russia has never condoned Palestinian terrorist acts, Russian officials do not necessarily view all Palestinian actions as inherently terrorist in nature and sometimes argue that armed resistance is justified against an Israeli occupation of Palestinian territory. Nevertheless, the Government of Russia firmly opposes state-sponsored terrorism and supports international initiatives to combat it. The Russian Government maintains that its relationships with states on the US terrorism list serve as a positive influence that has—or may have—moderated or diminished these governments’ support for terrorist groups.

Cooperative effort in the global war on terrorism remains a key pillar of Russia’s strategic partnership with the United States. Regular meetings of theWorking Group on Counterterrorism, cochaired by US Deputy Secretary of State Richard Armitage and Russian First Deputy Foreign Minister VyacheslavTrubnikov, continue to facilitate counterterrorism cooperation between the two nations. The Working Group has encouraged expanded direct agency-to-agency contacts and specific antiterrorism projects. Russia has established similar bilateral working groups on terrorism with a number of other countries, including the United Kingdom, India, France, and Germany.

The Russian Federal Security Service (FSB) and the US Federal Bureau of Investigation (FBI) regularly exchanged operational counterterrorism information in 2003. Russian authorities provided the United States Department of Homeland Security and FBI with evidence leading to the prosecution of an individual in the United States for fundraising activities associated with terrorism.The FSB also assisted the FBI in several important international terrorism investigations during 2003. Unprecedented cooperation between the FBI and FSB was essential to the FBI’s arrest in New Jersey in August 2003 of Hermant Lahkani for attempting to sell a shoulder-fired missile to an undercover operative posing as an al-Qaida terrorist. Lahkani was indicted on 18 December 2003.

A mutual legal assistance treaty is in force and has been used effectively in some cases.

According to the Russian General Procuracy, 90 percent of terrorist acts in Russia during 2003 were committed within Chechnya and its surrounding areas. Some were directed against military or internal security forces, while others targeted specific civilians. The terrorists’ strategic use of women to conduct increasingly random, indiscriminate, and sensational suicide attacks emerged as a key development in 2003. Major terrorist acts perpetrated against Russia during 2003, in chronological order:

■ 15 April: Sixteen civilians die when a bomb explodes on a bus near Khankala.

■ 9 May: Victory Day bombing at the Dynamo Stadium in Groznyy, the Chechen capital, injures three.

■ 12 May: Two women and a man detonated an explosiveladen truck inside an administrative complex in Znamenskoye in northern Chechnya, killing 60 and wounding more than 250.

■ 14 May: Groznyy resident Larisa Musalayeva detonated an explosive belt at a crowded Muslim religious festival east of Groznyy, killing herself and 18 others and wounding 46, in a probable attempt to assassinate Chechen administrator Akhmad Kadyrov.

■ 5 June: Samara resident Lidiya Khaldykhoroyeva detonated an explosive belt beside a bus filled with federal air force personnel near Mozdok, a major staging area for Russian troops serving in Chechnya, killing herself and 18 others.

■ 20 June: A man and a woman detonated a truck bomb in the vicinity of an Internal Ministry building in Groznyy, killing themselves and wounding 36.

■ 5 July: Twenty-year-old Kurchaloy resident Zulikhan Alikhadzhiyeva and a female accomplice each detonated explosive belts at a crowded rock concert in the Moscow suburbs, killing themselves and 16 others and wounding more than 50.

■ 9 July: Twenty-three-year-old Bamut resident Zarema Muzhikhoyeva was apprehended after trying unsuccessfully to detonate an explosive within her handbag while seated at a table in the Mon cafe on Moscow’s Tverskaya street.

■ 1 August: A suicide truck bomber completely destroyed a military hospital in Mozdok near Chechnya, killing himself and 52 others and injuring more than 80.

■ 3 September: Six people are killed in an explosion onboard a commuter train near the Northern Caucasus spa town of Pyatigorsk.

■ 16 September: Two suicide bombers drive a truck laden with explosives into a government security services building near Chechnya, killing three and wounding 25.

■ 5 December: A suicide bomber detonated a bomb on a morning commuter train near Yessentuki in the Stavropol region north of Chechnya, killing 44 and wounding more than 150.

■ 9 December: A female suicide bomber detonated a bomb near Moscow’s Red Square, killing herself, five others, and wounding 14.The woman and an accomplice had asked passersby for directions to the state Duma moments before the detonation.

Russia is a party to 11 of the 12 international conventions and protocols relating to terrorism. Ratification of the Convention on the Marking of Plastic Explosives for the Purpose of Detection is expected in 2004.

Tajikistan

The Government of Tajikistan continues to be a staunch supporter of the United States in the global war on terrorism. Tajikistan does not support any terrorist groups or activities and allows its territory and air space to be used for counterterrorist actions. President Emomali Rahmonov reiterated Tajikistan’s adamant opposition to terrorism and terrorist activities to the United Nations General Assembly in 2003.

On the national level, the Government continues to develop national counterterrorism legislation to supplement the Antiterrorist Law of the Republic of Tajikistan of 1999, the State Program on Strengthening the Fight against Terrorism of 2000, and the Tajik criminal code, which allows harsh punishments for acts of terrorism, including the death penalty. The Tajikistani Government closely monitors terrorist groups operating within its borders such as the Islamic Movement of Uzbekistan. In addition,Tajikistan has taken steps to combat terrorist financing by distributing lists of designated terrorist groups and individuals to local banks and other financial institutions.

On the international level, Tajikistan participates in antiterrorist initiatives advanced by the SCO and the CIS Antiterrorist Center. On 14 November 2003, Tajikistan and India created a bilateral counterterrorist working group and agreed to create an antiterrorist framework. In his address to the UN General Assembly in 2003, President Rahmonov focused on issues related to the struggle against international terrorism and ways to eradicate it. He expressed an interest in the role of narcotics trafficking in financing terrorism and called for establishing a global partnership for countering the dangers of drugs.

The United States currently provides technical aid to the antiterrorist units of the Tajikistani Government.With the assistance of the United States and other foreign countries, Tajikistan’s law enforcement personnel receive training in such areas as crisis management, bomb detection, and postblast investigation.Tajikistan and Russia are joined in a bilateral effort that employs the Russian 201st Motorized Rifle Division and the Russian Border Guard Service in a counterterrorism role.

Tajikistan has not had a domestic terrorist incident since 2001. The Tajikistani Government made no requests for extradition nor extradited any suspected terrorists in 2003.

Tajikistan is a party to eight and signatory to nine of the 12 international conventions and protocols relating to terrorism.

Turkmenistan

The Government of Turkmenistan has been a member of the international Coalition against terrorism, taking action to seal its border with Afghanistan, identifying and freezing any financial assets used to support terrorism, and instituting new airport security measures.Turkmenistan is officially a neutral country and assists the Coalition in nonmilitary initiatives such as allowing the overflight of US aircraft and small “gas and go” operations in support of humanitarian relief missions in Afghanistan.The Government also participated in “Six plus Two” meetings on forming a new Afghan Government and in international donor meetings on Afghan reconstruction. Turkmen officials have made no statements in support of a terrorist-supporting country on a terrorism issue.

Turkmenistan courts carried out no prosecutions on charges of international terrorism in 2003. On 25 November 2002, an armed attack was carried out on President Niyazov’s motorcade.This attack is considered by the Government to have been a case of domestic terrorism.Trials of those implicated in the plot were held in January and February 2003; international observers were not allowed to attend, and there were serious concerns about the due process accorded to defendants. All of those convicted for the attack received lengthy jail sentences.

There has been a significant change in the Government’s attitude toward terrorism, specifically domestic terrorism, following the attack on President Niyazov. Measures adopted in the wake of the attack in November 2002 are ostensibly designed to “strengthen” Turkmenistan’s security; however, in its implementation of the new strictures, the Government has further infringed on civil liberties and violated human rights.

Turkmenistan is a party to nine of the 12 international conventions and protocols relating to terrorism.

Ukraine

The fight against terrorism is a priority for the Government of Ukraine.The president, cabinet of ministers, and foreign ministry publicly condemned acts of international terrorism on several occasions. Ukraine supported both Operation Iraqi Freedom and Operation Enduring Freedom in 2003. Ukraine is one of the largest Coalition troop providers in Iraq. Kiev does, however, maintain trade relations with several countries listed by the United States as State Sponsors of Terrorism.

Ukraine supported the Coalition in Iraq by sending a 450-member Nuclear, Biological, and Chemical remediation unit to Kuwait; elements of this group later joined the current deployment to Iraq. A 1,650-member Ukrainian brigade is now serving in the Polish-led Multinational Division. Ukraine also grants overflight rights to support counterterrorist efforts in Afghanistan, allowing approximately 2,000 overflights in 2003. Air bases in Ukraine have also been identified for emergency use by the OEF Coalition.

Significant Ukrainian legislative developments during 2003 in the fight against terrorism included adoption by the Parliament of an omnibus “Law on Combating Terrorism,” adoption of a new criminal code containing Article 258 that explicitly defines terrorism, and adoption of the “Program of National Antiterrorist Measures for 2003-2005.” The Parliament also passed additional legislation, including amendments that bring the law on money laundering into line with FATF requirements.

In 2003, the Government reports that Ukrainian courts carried out no prosecutions on charges of international terrorism and prosecuted only two domestic cases in which terrorism charges were filed. Ukrainian law enforcement agencies exchanged information with the Anti-Terrorism Center of the CIS and law enforcement agencies of the United States, France, Israel, Turkey, Portugal, Germany, Malaysia, Czech Republic, Slovakia, Latvia, Lithuania, Russia, Kazakhstan, Azerbaijan, Belarus, and others.

Although Article 25 of the Ukrainian constitution prohibits the extradition of Ukrainian citizens, the criminal code provides for extradition of foreigners and persons without citizenship who are not permanent residents of Ukraine. Ukrainian authorities deported several persons with suspected or alleged ties to terrorism in 2003, including several transient Chechens.

Control over the procedures for entry, departure, and stay in Ukraine for representatives of Islamic organizations and centers, including those from the Caucasus region, has been tightened. These measures include shortening the period of stay in Ukraine, expelling individuals from the country, and banning entry.The Interior Ministry is developing a database to document and register (including automated fingerprinting) persons detained for illegally crossing Ukraine’s state border and/or staying illegally in Ukraine.

Pursuant to UN Security Council resolutions 1333, 1390, and 1455, Ukraine is taking measures to block the funds and other financial resources of Usama Bin Ladin and his supporters. Thus far, none have been identified. The Ministry of Finance is charged with collecting, processing, and analyzing financial transactions subject to obligatory financial monitoring. There have been problems with implementation of these provisions.

Ukraine is a full party to all 12 international conventions and protocols relating to terrorism.

Uzbekistan

Uzbekistan was among the first states to support US efforts in the global war on terrorism. President Islom Karimov consistently stresses the importance of Uzbekistani counterterrorism cooperation in both public and private venues. Uzbekistan continues to host US military forces within its borders and views the US base at Karshi-Khanabad as fundamental to Uzbekistan’s support for the war on terror and central to stability in Central Asia.

Uzbekistan has played an important role in multilateral regional efforts to combat terrorism. Uzbekistan has recently engaged with Kazakhstan and Kyrgyzstan on antiterrorist issues, especially those related to the IMU. In August 2003, Tashkent was designated as the location for a Shanghai Cooperation Organization Regional Anti-Terrorism Center. Uzbekistan publicly condemns state sponsors of terrorism, despite the presence of Iranian and North Korean diplomatic missions in Tashkent.

The Karimov regime is concerned with the threat posed by the IMU, presently operating primarily outside its borders.The Government of Kazakhstan recently extradited two IMU members to Uzbekistan. Uzbekistan continues to make countering terrorism and antiregime threats a high priority. Tashkent mounted robust efforts in 2003 to limit the destabilizing effects of militant Islam by further securing its borders, identifying extremists, and conducting arrests of suspected radicals and terrorists.

Uzbekistani prosecutors obtained more than 100 convictions in 2003 for actions that fell under the Uzbekistani criminal code for terrorist or extremist activity, as well as more than 600 other prosecutions under a less stringent Uzbekistani administrative code that, nevertheless, allows for detention of up to three years. The Government of Uzbekistan did not adopt any new antiterrorism laws in 2003. One high-profile prosecution is the recent sentencing of IMU member Azizbek Karimov, who admitted to planning attacks against the US Embassy in neighboring Kyrgyzstan.

Uzbekistan is signatory to all 12 international conventions and protocols relating to terrorism.

Europe Overview

European nations worked in close partnership with the United States in the global counterterrorism campaign and have continued to strengthen their legal and administrative ability to take action against terrorists and their supporters, including freezing their assets.The contributions of European countries in sharing intelligence, arresting members of terrorist cells, and interdicting terrorist financing and logistics continued to be vital elements in the war on terrorism. Allies such as France and the United Kingdom were particularly responsive during periods of heightened security, cooperating with United States officials to monitor airline flights of concern.

The European Union (EU) has been a reliable partner in the war on terrorism and has significantly strengthened its legal and administrative ability, and that of EU member states, to take action against terrorists and their supporters—including freezing their assets—in the past several years. International judicial cooperation advanced in 2003, as EU members changed domestic legislation to incorporate provision of the European Arrest Warrant, which was scheduled to come into effect in early 2004. The EU and United States signed new Extradition and Mutual Legal Assistance Treaties at the G-8 Summit in June 2003 that will expand law enforcement and judicial cooperation. Significant deficiencies remained, however, and some countries have legal impediments to taking firm judicial action against known terrorists, often stemming from asylum laws, inadequate counterterrorism legislation, or high standards of evidence that afford loopholes and limit the ability of authorities to hold suspects.The EU as a whole was reluctant to take steps to block the assets of charities associated with HAMAS and Hizballah.

The United Kingdom continued its longstanding close partnership with the United States, providing the secondlargest contingent of forces for the liberation of Iraq, arresting extremists in the United Kingdom on terrorism-related charges, and stepping up efforts to disrupt and prosecute terrorists. The United Kingdom aggressively moved to freeze the assets of organizations and persons with terrorist links and to proscribe terrorist groups.UK overseas interests were attacked in November when suicide bombers struck the British Consulate and a British bank in Istanbul, killing 25 people. The United Kingdom provided significant counterterrorism assistance and training to foreign governments around the world.

Italy continued its exemplary work against terrorism, deploying forces to Afghanistan and Iraq. Nineteen Italian citizens were killed in a terrorist attack on Italian Carabinieri in Iraq. Italian authorities continued to disrupt suspected terrorist cells linked to al-Qaida and, for the first time, expelled suspects believed to pose a terrorist threat. Members of the Red Brigades-Communist Combatant Party staged a shootout with police, leading to the arrest of the group’s leader and subsequent significant progress in dismantling it.

Spain’s vigorous investigation of extremist groups continued, with Spanish authorities indicting Usama Bin Ladin and 34 others for complicity in the September 11 attacks. Substantial progress was made against the Basque Fatherland and Liberty (ETA) terrorist organization; more than 100 persons connected to ETA were arrested, and several operational ETA cells were dismantled.

France made many significant terrorism-related arrests, including suspects linked to persons who assisted the September 11 hijackers. Investigations continued into the activities of terrorist cells connected to plots against the US Embassy in Paris. French authorities, working with their Spanish counterparts, put intensive pressure on ETA, arresting top leaders of the Basque terrorist group’s military wing in December. France continued to engage numerous non-EU countries in dialogue on counterterrorism issues.

Cooperation among European law-enforcement authorities was a feature of many successes during the past year. For example, France and Spain became the first countries to create “multi-national police investigation teams” under the terms of an EU agreement of 2002.

Germany contributed significantly to international forces in Afghanistan and took a lead role in that country’s reconstruction. In February, a German court became the first to convict a terrorist linked to the September 11 attacks. German authorities continued extensive investigations into Islamic extremist-based terrorism and arrested a number of suspects. In November, Germany extradited suspected al-Qaida financier Sheik Mohammed ali Hasan al Moayad and an associate to the United States.

In Turkey, two separate—but probably coordinated—attacks by suicide bombers on British and Jewish targets in Istanbul in November killed 61 people. Turkey and the United States continued to discuss cooperation against Kongra-Gel (KADEK—the former Kurdistan Workers Party), which, for its part, continued to launch attacks against Turkish targets. Despite progress by Turkish police against the Revolutionary People’s Liberation Party (DHKP/C), that group continued its attacks as well.

In December 2003, a Greek court convicted 15 members of Revolutionary Organization 17 November (17N) of hundreds of crimes, sentencing five 17N leaders to multiple life terms and imposing sentences of up to 244 years on others. Four suspects were acquitted.

Estonia, Latvia, Lithuania, Denmark, and Norway contributed forces and reconstruction assistance to Afghanistan and Iraq. Sweden and Finland also have peacekeepers in Afghanistan and are active in reconstruction in both nations. Norwegian authorities continued to investigate suspected Ansar al-Islam leader (and Norway resident) Mullah Krekar and froze an account linked to that organization.

Despite limited resources, the countries of southeast Europe have actively supported the international Coalition against terrorism. Albania, Serbia-Montenegro, Bosnia and Herzegovina, Croatia, and Bulgaria cooperated to combat organized crime and various forms of trafficking, enhance border security, and improve training for border security personnel.

The United States and the EU signed extradition and mutual legal assistance agreements in June that, as US Attorney General John Ashcroft noted, will provide “additional tools to combat terrorism, organized crime, and other serious forms of criminality.” The EU and its member states have made significant contributions to the reconstruction of Afghanistan.

Albania

Despite limited resources, Albania has provided considerable support to US and international counterterrorism initiatives. Albania continues to implement its National Action Plan against Terrorism, originally approved in 2002.

The government has frozen the assets of a notorious terrorist financier, curtailed the activities of suspect Islamic NGOs, and detained or expelled individuals suspected of having links to terrorism or attempting to foment religious intolerance. In June 2003, Parliament passed a strong moneylaundering law that included antiterrorist financing provisions, bringing Albania’s legislation into compliance with international standards. The Bank of Albania has also established a task force to monitor all financial activities of secondary banks and their compliance with client verification. Legislation is pending that would define what constitutes a terrorist act, identify the antiterrorism responsibilities of specific Government agencies, and create an interministerial National Coordinating Committee for the Fight Against Terrorist Acts. Albania continues to cooperate extremely closely with the United States and other governments in sharing information and investigating terrorist-related groups and activities. Albania has also started cracking down on ethnic Albanian extremists, recently convicting a key leader of the ultranationalist Albanian National Army on charges of inciting national and religious hatred and using falsified documents.

Albania has ratified all 12 UN international conventions and protocols relating to terrorism.

Belgium

The Belgian Government continues to participate in the global war on terrorism and cooperates with its European neighbors and the US Government on multiple levels. Brussels remains active in sharing information with the United States regarding terrorist threats to US interests or persons.

The Belgian judicial system effectively applied the rule of law to terrorist conspirators in 2003 when it prosecuted Europe’s largest terrorism trial since 11 September 2001. Among the 23 defendants was Nizar Trabelsi, a Tunisian national and al-Qaida associate arrested by Belgian authorities in September 2001 for plotting against various targets, including an Antwerp synagogue, the Kleine Brogel military air base, and the US Embassy in Paris.Trabelsi was sentenced to 10 years in prison—the maximum permitted under Belgian law at the time of trial. Also sentenced was Tarek Maaroufi, aTunisian-born Belgian national arrested in December 2001 for providing forged travel documents to the two assassins of Afghan Northern Alliance leader Ahmad Shah Massoud. Maaroufi was sentenced to six years in prison. Despite the absence of terrorism-specific legislation at the time of trial, the Belgian court was able to convict 18 of the other 21 defendants with sentences ranging from two to five years in jail.

In January 2003, Belgium enacted a bill granting law enforcement authorities the power to take “special investigative measures” such as wiretapping and infiltration for the investigation of terrorism and other serious crimes. In December 2003, the Belgian Parliament passed legislation implementing the EU’s Framework Decision of June 2002 on combating terrorism, as well as the European Arrest Warrant. (The King was to sign the legislation into law in January 2004.) The legislation implementing the EU Framework Decision criminalized terrorism and financial contributions to those who commit terrorist acts. The European Arrest Warrant should streamline the process of arresting and extraditing terrorists within the EU.

Belgium has participated in the International Security Assistance Force (ISAF) in Afghanistan since early 2003; 250 Belgian troops under ISAF currently provide security at Kabul International Airport. Belgium sent 5.5 million euros of humanitarian aid to Afghanistan in 2003.

Belgium has signed 11 of the 12 international conventions and protocols relating to terrorism but has ratified only six. In December 2003, two more conventions appeared on the way to ratification in early 2004.The Belgian Senate approved a bill providing for ratification of the UN Convention on the Suppression of the Financing ofTerrorism, and the lower house of Parliament—the Chamber of Deputies—was expected to pass it quickly as well.The Convention on the Punishment and Prevention of Crime against Internationally Protected Persons was presented to Parliament on 8 December. Its signature and ratification was also expected in early 2004.

Bosnia and Herzegovina

The Government of Bosnia and Herzegovina (BiH) has continued to condemn acts of international terrorism. Combating terrorism in BiH remains difficult because of the country’s ethnic divisions and the lack of strong central institutions, such as a state-level intelligence agency and law-enforcement authorities with both executive powers and national jurisdiction. BiH also lacks established procedures for dealing with such issues as denaturalization, extradition, deportation, and preventive detention.

The Bosnian Government introduced measures to address some of the administrative and legal challenges it faces in combating terrorism. A state-level intelligence and security agency, as well as an internal security service with significant counterterrorism responsibilities, are planned for 2004. In 2002, the Parliament passed a law creating the State Information and Protection Agency whose mission includes combating terrorism, illegal trafficking, organized crime, and smuggling of weapons of mass destruction.To shore up this agency’s authority and resources, an amended law will be submitted for Parliament’s approval in 2004. Although BiH lacks a financial intelligence unit, comprehensive moneylaundering and terrorist-financing laws, and legislation dealing with forfeiture of assets, this amended law is designed to address these weaknesses.

The BiH Government’s commitment to the fight against terrorism and its decisive action in apprehending suspects and shutting down NGOs and bank accounts tied to terrorist organizations slowed with the change of government in October 2002, which brought nationalist parties to power. Moreover, foreign Islamic extremists, who entered Bosnia during the war in 1992-95, remain in the country. Nonetheless, the Federation Financial Police continued to shut down NGOs with terrorist links, and Federation banking authorities continued to freeze accounts of suspected terrorist supporters. In particular, the Government disrupted the operations of the Benevolence International Foundation (BIF), Al-Haramain Islamic Foundation (including its successor, Vazir), and the Global Relief Fund, which have direct links to al-Qaida and Usama Bin Ladin. Documents seized from the offices of the BIF link its leader directly to Usama Bin Ladin. BIF leader Enaam Arnaout, who—among other things—was charged in US courts with concealing his relationship to al-Qaida, received a 15-year prison sentence.

The Government’s investigative proceedings into the role of six former Bosnian Federation officials suspected of operating a terrorist-training camp in BiH with Iran in the mid-1990s concluded at the end of 2003, and indictments—if issued—are expected in 2004.

Bosnia and Herzegovina is a party to 11 of the 12 international conventions and protocols relating to terrorism, ratifying five in 2003.

Bulgaria

To aid in the fight against terrorist financing, the Government of Bulgaria enacted in February 2003 the Law on Measures Against the Financing of Terrorism, which links existing laws against terrorism with the financing of those crimes.The law was drafted in accordance with the Financial Action Task Force’s Eight Special Recommendations Against the Financing of Terrorism.The Bulgarian Financial Intelligence Agency has full authority to obtain information without a court order, to share information freely with law-enforcement agencies, and to process and act on allegations of terrorist financing.

In the past year, Bulgarian Ministry of Interior and Customs training has begun to include nuclear, biological, and chemical detection and handling. Customs officers have begun using the TRACKER licensing system as their primary permit-screening tool.

In December 2003, Bulgaria joined the United Nations Convention Against Corruption. Sofia is a party to all 12 international conventions and protocols relating to terrorism.

Czech Republic

The Czech Republic is a stalwart ally in the war against terror and is providing assistance both domestically and abroad. In support of Operation Iraqi Freedom, the Czechs posted a nuclear-biological-chemical (NBC) unit to Camp Doha and a military field hospital to Basra, where it treated more than 10,000 civilians and military personnel. Although both returned home at the end of 2003, a Czech Civilian-Military Cooperation Team, 80 military police, and 13 Czech experts serving in the Coalition Provisional Authority are still in the theater. Per commitments made in Madrid, the Czech Republic provided 10 experts to train Iraqi police in Jordan.

In Afghanistan, the Government of the Czech Republic provided its NBC unit and military hospital before sending them to Iraq. The Government is considering a deployment of up to 150 special forces troops to Afghanistan.

There were no cases of international terrorism within the Czech Republic in 2003, but Czech authorities addressed several domestic cases of extortion involving the use of explosives or poison. Neither bombs nor poison were ever found, but the Czech police made arrests and are prosecuting the cases appropriately.

The Czech Republic is a party to nine of 12 conventions and protocols relating to terrorism. Its main goal in combating terrorism is to ratify the UN Convention on the Suppression of Financing of Terrorism and the amendment of the Measures against Legalization of Proceeds of Criminal Activity. The latter is currently before Parliament.

Denmark

Denmark has actively supported the global war on terrorism. In 2003, the Danish Government froze the assets of the Danish branch of al-Aqsa and arrested a Danish citizen originally from Morocco with alleged ties to al-Qaida and pressed stillpending weapons charges against him.

The Danish Government contributed naval assets to Operation Iraqi Freedom and has more than 500 military personnel deployed in southern Iraq assisting with security and reconstruction efforts. Denmark contributed 50 military personnel to the ISAF in Afghanistan in 2003, in addition to Danish officers deployed with NATO. In December 2003, the Parliament authorized deployment of 40 additional personnel to provide communications and information support to ISAF.

Denmark is a party to all 12 international conventions and protocols relating to terrorism.

Estonia

Estonia has been fully supportive of the war against terrorism. Estonia contributed a demining team in support of the ISAF in Afghanistan. In Iraq, Estonia is contributing a cargohandling team and 24-man infantry platoon under US command, as well as providing humanitarian assistance.

Estonia is a party to 11 of the 12 international conventions and protocols relating to terrorism.

Finland

In 2003, Finland implemented regulations that allow it to freeze terrorist assets without EU or UN approval in cases when another government presents a legal request for action or the individual or organization is suspected of having committed an offense within Finland’s borders. Finland also amended its criminal code to make it possible to sentence leaders of terrorist groups to 15 years in jail, although the group has to have actually committed acts of terrorism in Finland before investigation and prosecution can begin. If the charge also includes murder, the maximum sentence could be life imprisonment. In January 2004, the Finnish Security Police also created a special unit concentrating solely on fighting terrorism, the first of its kind in Finland.

Approximately 50 Finnish Civil-Military Cooperation troops are currently deployed in Afghanistan in support of ISAF. In 2003, Afghanistan was the single-largest country recipient of Finland’s foreign aid (10 million euros each year), which included support for the Afghan army and police force.

Finland is a party to all 12 international conventions and protocols relating to terrorism and implemented EU legislation against terrorism.

France

France remains an active and engaged participant in the war against terrorism, exemplified by an aggressive police force and judiciary. French authorities work closely with US and other foreign counterparts to investigate and prosecute terrorist operatives. France is currently changing its domestic legislation to incorporate the provisions of the European Arrest Warrant and to strengthen its procedures for international judicial cooperation. (The Arrest Warrant is expected to enter into force on 1 January 2004 in France and the other 14 EU member states.)

Throughout 2003, France continued to take rapid action in support of US requests under Executive Order 13224 to freeze Taliban, al-Qaida, and other terrorist financial assets. The Ministry of Finance’s terrorism financing coordination cell, FINTER, maintains direct coordination with the US Treasury Department’s Financial Terrorism Task Force and Office of Foreign Asset Controls.

The year 2003 saw many significant terrorism-related arrests in France. In June, French authorities arrested Moroccan national Karim Mehdi at Paris’s Charles de Gaulle airport. Mehdi is suspected of having ties to the al-Qaida cell in Hamburg whose members aided the hijackers of September 11 and for plotting against tourist facilities on Reunion Island. Arrested at the airport several days later was a German convert to extremist Islam, Christian Ganczarski, implicated in the al-Qaida attack on the synagogue in Djerba,Tunisia, and closely associated with al-Qaida in Germany. Both arrested extremists are residents of Germany.

French judicial authorities continued their investigation into the activities of suspected terrorist Djamal Beghal, the leader of an al-Qaida-associated cell in France, for plotting to attack the US Embassy in Paris. Several additional suspects remain in custody in France on charges relating to this conspiracy. One member of Beghal’s cell, Algerian national Kamel Daoudi, was sentenced on 4 November to six months in prison for his criminal association with a terrorist network plotting attacks in France.

France has also made significant progress against non-Islamic indigenous terrorist groups, including ETA, the Real IRA, and the Corsican Separatists. In October 2003, a Paris court sentenced presumed ETA militant Alberto Rey-Domecq to six and a half years in prison for participating in a criminal association with terrorist aims. On 4 November 2003, French authorities arrested five French nationals who were suspected of providing support to the Real IRA, a dissident faction of the Irish Republican Army. In late June, French judicial authorities convicted eight Corsican nationalists for the assassination in 1998 of the Corsican Prefect Claude Erignac. Four of the conspirators were given life in prison, and the remaining four received lesser sentences.

France continues to cooperate with its neighbors to combat terrorism, for example, building upon last year’s protocol with Spain to include new provisions such as joint investigation teams.This agreement provides the teams with authority to conduct police investigations in each other’s countries, subject to the judicial authorities of the country in which they act.

In addition, France has joined numerous other non-EU countries in dialogue on counterterrorism issues, including Turkey, Pakistan, Singapore, and India. France has engaged other European, Mediterranean, and North African countries in dialogue to create an area of security in the Western Mediterranean that will focus on combating Islamic terrorism. US and French authorities enjoyed exemplary cooperation in providing enhanced security for airline flights of concern during a period of heightened threat around the Christmas holidays and beyond.

France has designated as terrorist groups those that appear on the EU list of terrorist organizations. In 2002, France designated HAMAS as a terrorist organization but has yet to designate the related charities. France, along with its EU partners, has not yet designated Lebanese Hizballah as a terrorist organization.

The plot to attack tourist facilities of French overseas department Reunion Island in a manner similar to the Bali nightclub bombings of October 2002 best signifies the continued threat to French citizens or interests posed by Islamic extremist terrorists in 2003, reinforcing the notion that France is both a short-and medium-term target for al-Qaida and associated groups.

This year, France became a party to all 12 international conventions and protocols relating to terrorism by ratifying the UN Convention on the Prevention and Punishment of Internationally Protected Persons.

Germany

Germany continues to be a prominent participant in the global Coalition against terrorism, reflecting many German security officials’ assessments that Germany is a terrorist target and an important al-Qaida logistic hub. Germany also is an active supporter of the counterterrorism campaign in international forums, including the EU,UN, NATO, OSCE, and the G-8.

Germany continues to contribute significantly to international forces in Afghanistan with approximately 2,700 soldiers deployed on missions in support of the ISAF, Operation Enduring Freedom, and Operation Active Endeavor in the Mediterranean. Germany and the Netherlands were lead nations for ISAF from February until August, when NATO assumed command. In October, the German Parliament extended authorization for Germany’s participation in ISAF for another year. German naval forces continue to be a major participant in the antiterrorism naval task forces off the Horn of Africa and in the Mediterranean that are tasked with ensuring the security of shipping routes and cutting off the supply and escape routes used by terrorists.

Germany has taken a lead role in Afghanistan’s reconstruction through humanitarian and development assistance. German personnel continue to train and equip a new Afghan police force, and Germany has committed to spend approximately 320 million euros in Afghanistan by 2006.

German bilateral assistance with Iraq’s reconstruction has been modest, with aid largely limited to humanitarian assistance, demining, and restoration of the water system, as well as offers to help in training the country’s reestablished police force. Berlin’s multilateral assistance for Iraq includes 25 percent of the European Commission’s 200 million euro pledge for reconstruction.

Germany was the first country to convict a terrorist linked to the attacks of September 11. In February, the Hamburg Higher Regional Court sentenced Moroccan national Mounir el Motassadeq to 15 years in prison—the maximum sentence allowable under German law—for accessory to murder and membership in a terrorist organization. A trial on similar charges against a second suspected terrorist of September 11, Moroccan Abdelghani Mzoudi, took place in Hamburg and ended with his acquittal in February 2004. Germany is still seeking Hamburg cell suspects Said Bahaji, Ramzi Binalshibh, and Zakariya Essabar under international arrest warrants.

German federal and state criminal offices are conducting 177 preindictment investigations into Islamic extremist- based terrorism, and several terrorists have been sentenced to prison. Four members of the Meliani Group were sentenced to 10-to-12 years in prison for plotting an attack on the Strasbourg Christmas market in December 2000. A member of the German “al-Tawhid” cell, which has close ties with al-Qaida, was sentenced to serve four years for passport forgery and membership in a terrorist organization, and charges have been brought against four other al-Tawhid members. A Turkish citizen was sentenced to 18 months in prison for illegal possession of explosives and drug charges, but the prosecution failed in its attempt to convict him of charges of planning a terrorist attack on the US Army’s European Headquarters in Heidelberg.

Notable arrests and indictments include the arrest of several extremists affiliated with Berlin’s al-Nur Mosque, who were plotting to carry out a suicide operation during anti-Iraq war demonstrations in Berlin, and a suspected former leader in the DHKP-C—a Turkish left extremist organization with cells in Germany that was banned in August 1998.

Germany also agreed in November to extradite to the United States twoYemeni nationals who were wanted for material support to terrorism, after receiving assurances that they would not be tried before a US military commission.

German authorities, however, have failed in some efforts to bring indictments against several prominent al-Qaida suspects, including German national Christian Ganczarski—a contact of the hijackers of September 11 and a suspect in the Djerba bombing in April 2002 in which several German citizens were killed. He and his associate Karim Medhi—who confessed to helping plan a terrorist attack in Reunion Island last spring—were arrested by French authorities in June and are being held in France for prosecution.

Germany has adopted antiterrorism reforms that should enhance its ability to fight terrorism. New and stronger provisions in the German law on associations have been used to ban several foreign extremist organizations in Germany.The Interior Ministry has banned the extremist Islamic association Hizb ut-Tahrir—based outside Germany—from any activity within the country and has seized the association’s assets in Germany. The Federal Constitutional Court in October upheld the ban against the Islamic extremist group “Caliphate State,” which has now exhausted all appeals. The court has temporarily lifted the ban against the Al-Aqsa Foundation, which is accused of providing financial support to HAMAS, pending a final ruling, but authorities continue to monitor the members’ activities.

Germany signed in October a bilateral Mutual Legal Assistance Treaty with the United States in criminal matters—the result of nine rounds of negotiations conducted during the past 20 years.This treaty should streamline and expedite the process of mutual legal assistance between the United States and Germany.

Of the 12 existing UN conventions and protocols relating to combating terrorism, Germany has signed all—and ratified eleven—of the conventions.The UN Convention for the Suppression of the Financing of Terrorism is still in the process of ratification.

Greece

Greece continues to make progress in the fight against terrorism, particularly against domestic groups.The Greek Ministry of Justice announced in November that it would seek to enact new counterterrorism legislation to comply with a decision made by the European Council in 2002.This law will for the first time in Greek jurisprudence define terrorism as a crime. The law also increases the statute of limitations on terroristrelated killings from 20 to 30 years and increases prison terms for terrorist leaders.

Greece has participated in the ISAF in Afghanistan since 2002. Currently, more than 130 individuals from the Greek Corps of Engineers and other support elements are deployed in Kabul. A Greek navy frigate was stationed in the Arabian Sea until July, and two Greek C-130 aircraft are operating in the Afghan theater.

In December, a Greek court concluded a nine-month trial of 19 accused members of the 17N terrorist group, which was responsible for the deaths of 23 individuals, including five US Embassy employees. A special three-member judiciary panel convicted 15 of the 17N terrorists of hundreds of crimes—five of the terrorists were given multiple life terms, and four were acquitted because of a lack of evidence.The Greek Chief of Police has stated that additional members of the group are at large, and investigations are continuing.

Greek authorities in the spring arrested five members of the Revolutionary People’s Struggle (ELA)—the country’s oldest, although lesser-known terrorist group—marking Athens’s first-ever arrests against the group. The five members were charged with killing a police officer and other crimes, and the trial against them began in February 2004 and is ongoing. ELA has not conducted an attack since 1995, but Revolutionary Nuclei (RN)—widely believed to be the successor to or offshoot of ELA—may be responsible for attacks in July against an insurance company and bank in Athens, on the basis of forensic evidence. RN’s few communiques show strong similarities in rhetoric, tone, and theme to ELA proclamations. RN’s last confirmed attack was in November 2000.

Anarchists and leftwing terrorists continued to conduct arson attacks and some low-level bombings against an array of perceived establishment and so-called imperialist targets, such as banks, courts, and personal vehicles. Between September and late December, more than 50 anarchist attacks took place—mainly conducted in solidarity with imprisoned anarchists and 17N trial defendants. Overall, there were 10 low-level attacks against US businesses and vehicles in 2003, compared to a total of eight such attacks the previous year. Anarchists also were responsible for a “barrage” of low-level bombings of banks in November on the eve of the visit of FBI Director Mueller and claimed them as a “warm welcome” to the US official. These attacks only caused property damage but underscore the lingering nature of leftwing terrorism in Greece.

Athens is enhancing security preparations for the 2004 Olympic Games. The Olympic Security Advisory Group—a seven-state group—is a key forum for assisting this effort.

Greece plans to spend $750 million to counter potential terrorist and other security threats during the Games. Greece has signed all—and ratified 11—of the UN conventions and protocols relating to terrorism.

Hungary

Hungary has been fully supportive of the war against terrorism and US initiatives against al-Qaida and other terrorist organizations both within its borders and abroad.Throughout 2003, Hungary maintained consistent political support for the war on terror, actively promoting the US position in NATO and the UN and giving high-level endorsement to US policies.

In support of Operation Enduring Freedom, Hungary developed a package of excess weapons, ammunition, and equipment for the Georgia Train and Equip Program and the Afghan National Army training project.

The total amount donated for Afghanistan was 437 tons, valued at $3.7 million. The Georgia program comprised 8 tons, valued at $25,000. In 2003, the Hungarian Parliament approved the sending of up to 50 troops to the ISAF in Afghanistan. Also in 2003, Hungary contributed a military medical unit as part of the ISAF. The medical unit was deployed there from March to September.The Government delivered $1 million in humanitarian aid to Afghanistan in 2003.

Hungary passed a law in December 2001 on money laundering and terrorist financing that brought it into full compliance with EU and Financial Action Task Force norms. Now, however, the Government has put before its Parliament additional legislation that would go well beyond that of most countries in reporting requirements for financial transactions.

Cooperation with US and regional officials on export and border controls continues to be outstanding. In several cases, Hungarian officials have aggressively pursued and developed leads and provided extensive cooperation to US officers that have stopped the transshipment of hazardous goods.

Hungary is actively improving its technical ability to track and control dangerous materials, and its imminent accession into the EU is accelerating this process. Hungary is a party to all 12 international conventions and protocols relating to terrorism.

Iceland

Despite having no indigenous military forces, Iceland has contributed to the war on terrorism efforts in Afghanistan and Iraq. Building on its experience from running Pristina airport in Kosovo on behalf of the Alliance, Iceland is due to take sole responsibility for the operation of the Kabul airport on 1 June 2004.The Government decided in February 2004 to provide chartered airlift for Dutch military assets en route to Afghanistan. Other supportive actions include the deployment during 2003-04 of two bomb disposal experts with Danish forces in southern Iraq and earlier airlift contributions for Operation Enduring Freedom.

Iceland is a party to all 12 international conventions and protocols relating to terrorism.

Italy

Italy has been a staunch ally in the war against terror and has made significant contributions in Afghanistan and Iraq. Italy deployed a 1,000-troop task force in Afghanistan, its first major combat deployment since World War Ⅱ. The Italian Government also maintains approximately 3,000 troops, civilian personnel, and paramilitary Carabinieri in Iraq. Despite the terrorist bombing of 2 November of the Italian Carabinieri headquarters in Nasiriyah, Iraq, which killed 19 Italian citizens, Italy remains one of the four largest contributors of troops and personnel to ongoing stabilization operations in Iraq.

Italy’s law enforcement authorities maintained an ongoing and largely effective initiative against Italy-based terrorist suspects, including investigation, detentions, prosecutions, and expulsions. According to Ministry of Interior data, Italian authorities in 2003 arrested 71 individuals suspected of planning or providing support to terrorist activity. Many of those arrested were suspected al-Qaida operatives and recruiters or facilitators for Ansar al-Islam and other al-Qaida- linked extremist organizations.

In November, Italy’s Minister of Interior for the first time exercised ministerial authority to expel seven terrorist suspects who he assessed posed a serious terrorist threat to Italy’s national security. The Italian Government declared that, while there may have been insufficient evidence to arrest the suspects, lengthy investigation had compiled compelling evidence that the seven were Islamic extremists who posed a threat to the national security.

Preventing terrorism financing has also been a key goal of the Italian Government as a part of its war against terrorism. To date, Italy has fully complied with the asset-freezing requirements imposed by UN Security Council Resolutions and EU mechanisms. In January, Italy ratified and brought into effect the International Convention for the Suppression of the Financing of Terrorism and adopted a number of provisions to adjust Italian legislation accordingly. Under the ratification law, penalties for the crimes of money laundering—if committed during banking or professional activities—are now extended to terrorism financing crimes. The Government of Italy in 2003 also submitted 30 names of individuals suspected of links to al-Qaida to the UN 1267 Sanctions Committee for listing on its consolidated list of individuals and/ or entities associated with al-Qaida, the Taliban, or Usama Bin Ladin, making them subject to sanctions.The Italian Government froze their assets in Italy.

The domestic leftwing terrorist group, the new Red Brigades-Communist Combatant Party (BRCCP), also presents an ongoing terrorist threat to Italian national security. Italian authorities continue their efforts to dismantle and prevent terrorist acts by the BR-CCP, which has used assassination of government officials as a tool of terror during the last several years. In March, two BR-CCP activists engaged police officers in a shootout on a train. One of the group’s leaders was arrested and remains in detention; another member was killed. Subsequently, Italian authorities in October arrested several suspected BR-CCP activists using evidence seized from the detained leader, and they assess that they have made significant progress in dismantling the terrorist group.

Italy is a party to all 12 international conventions and protocols relating to terrorism.

Latvia

Latvia has been fully supportive of the war against terrorism. Latvia contributed a medical team in support of the ISAF in Afghanistan. In Iraq, Latvia contributed a 103-man infantry company under Polish command, undertaking patrols, assisting in maintaining public order, and helping efforts to rebuild and reconstruct Iraq; it also deployed cargo-handling and bomb disposal specialists.The Government has offered technical assistance for the reconstruction of Iraq.

The Government takes its terrorist financing responsibilities seriously and has been very responsive in those instances when the United States has shared information on terrorist financing. Drawing on US and other sources, Latvia has compiled a terrorist-financing database that it shares with local banks.

Latvia is a party to all 12 international conventions and protocols relating to terrorism.

Lithuania

Lithuania has been fully supportive of the war against terrorism. Lithuania is implementing the National Security Strategy of May 2002 and the National Counter Terrorism Program of January 2002.These plans include: participation in the international fight against terrorism; expanding and sharing resources; defending possible targets and infrastructure; identifying terrorists, their groups, and supporters; identifying and cutting off sources of terrorist finances; clarifying the procedures for investigating terrorist cases; strengthening rapid reaction and crisis management capabilities; strengthening of counterterrorist intelligence; and strengthening of internal economic and social security in general.

Lithuania has also sent troops and other military personnel to Afghanistan and Iraq. Since November 2002, Lithuanian Special Operation Forces have participated in Operation Enduring Freedom in Afghanistan. About 100 Lithuanian troops and logistic specialists are operating in Iraq. In October, Parliament voted to extend the missions to Afghanistan and Iraq until the end of 2004.The Government also pledged modest financial assistance to Iraqi reconstruction.

In September, Lithuania and the US Government cooperated in moving 140 kg of irradiated beryllium—a strategic material—to a safe storage facility. Lithuania is a party to 11 of the 12 international conventions and protocols relating to terrorism, including the International Convention for the Suppression of the Financing of Terrorism.The Government has been very cooperative in investigating and detecting potential terrorist finances.

Netherlands

The Dutch have responded to the global terrorist threat with leadership and energy in the areas of border and shipping security, terrorist financing, and Alliance efforts in Afghanistan and Iraq. However, the Dutch continue to struggle with successfully prosecuting terrorists.

In 2003, the Netherlands assumed joint command over the ISAF with Germany and pledged $15 million during three years to the Afghan Reconstruction Trust Fund. The Netherlands contributed a frigate, fighter aircraft, and reconnaissance planes to Operation Enduring Freedom in Afghanistan but drew down these forces on 1 October. The Netherlands continues to participate with two frigates and one maritime patrol aircraft in the NATO-led naval antiterrorism campaign, Operation Active Endeavor, in the Mediterranean.

The Dutch have had a contingent of 1,100 troops in Iraq since summer 2003 (scheduled to remain until summer 2004) and have pledged 21 million euros for reconstruction. In addition, the Netherlands has pledged 300,000 euros to establish the Iraqi Bureau of Missing Persons. The Dutch have not successfully prosecuted a terrorist case since September 11, 2001. Recent unsuccessful prosecutorial efforts against suspected terrorists, including four men suspected of plotting to bomb the US Embassy in Paris and 12 alleged Muslim extremists suspected of recruiting for jihad, have highlighted weaknesses in the Dutch legal infrastructure.

Pending changes to Dutch counterterrorism laws from July 2002 would address some of these deficiencies and bring the Netherlands in line with EU-mandated sentences for leading and participating in a terrorist group—and even go beyond EU minimums when a crime was committed with “terrorist intent.” In August 2003, amendments were proposed to the counterterrorism legislation criminalizing recruitment for jihad violence and also conspiracy to commit terrorist crimes.The Second Chamber of Parliament on 9 December approved the Government’s bill of July 2002 on terrorist crimes and the amendments of August 2003. The bill will be considered by the First Chamber and is expected to come into force in mid-2004.

In April 2003,The Second Chamber also authorized the use of “criminal civilian” infiltrators in exceptional situations in terrorism cases. For national security purposes, the Dutch Government agreed in October 2003 to investigate the feasibility of introducing a systemized file comparison between the information from the immigration department and the security agencies.

Dutch officials remain committed to establishing financial protocols to combat terrorism and have cooperated with the United States in freezing the assets of known terrorist organizations. Using national sanctions authority, the Dutch blocked the accounts and financial transactions of a HAMAS fundraiser, the al-Aqsa Foundation, and al-Qaida-affiliated Benevolence International Nederland. Neither the Dutch nor their EU partners, however, have designated Lebanese Hizballah as a terrorist group.

In 2003, the Netherlands continued its commitment to shipping and port security by increasing cooperation with the United States. The first meeting of the bilateral Aviation Security Working Group was held in April, and the inaugural meeting of the Port and Maritime Security Working Group was held in May. In addition, radiological monitors in the port of Rotterdam were expected to be installed and operational by 2004.

There were no international terrorist attacks in the Netherlands in 2003.

The Netherlands has signed and ratified all 12 international conventions and protocols relating to terrorism.

Norway

Norway has been a solid ally in the war on terrorism. Norwegian authorities continue to investigate suspected Ansar al-Islam leader (and Norway resident) Mullah Krekar and have frozen an account linked to that organization.The Norwegian Government has provided Special Operations Forces and Explosive Ordinance Disposal units on a rotating basis to Operation Enduring Freedom and ISAF in Afghanistan since October 2001. Elements of a Mechanized Infantry Company of 180 personnel, the Telemark Task Force, deployed to Afghanistan in December 2003.The unit provided security for the Loya Jirga proceedings and is now conducting security missions in and around Kabul as part of the ISAF. Norway contributed more than $46 million to Afghan reconstruction in 2002 and $53 million in 2003. In 2003, Norway designated Afghanistan a priority-assistance country, making a long-term commitment to development and reconstruction there. The Royal Norwegian Navy has maintained a nearcontinuous presence in Operation Active Endeavor with frigates, submarines, or torpedo boats.

Although Norway did not participate in the Coalition to liberate Iraq, they have contributed a 150-man engineering contingent operating with the United Kingdom and six staff officers operating with the Poles to the reconstruction effort in southern Iraq. In 2003, Norway contributed $42 million to the reconstruction and stabilization effort in Iraq, and at Madrid it pledged more than $11 million per year through 2006 for this effort.

Norway is a party to all 12 international conventions and protocols relating to terrorism.

Poland

Poland continues to play an important regional role in advancing the war against terrorism, both as a NATO ally and in the broader coalition against terrorism. Members of Poland’s special forces took part in Operation Iraqi Freedom, and on 3 September a Polish-led multinational division assumed control of the Central-South security zone in Iraq. More than 2,000 Polish soldiers currently are serving in Iraq, and the Government of Poland has also offered to assist in training the new Iraqi police force. In Afghanistan, some 100 Polish military personnel are involved in mineclearing operations at Bagram Air Base, and the Polish Government recently conveyed $100,000 worth of weapons and ammunition to the new Afghan National Army. Poland is providing most humanitarian assistance on an as-available basis.

Poland agreed to a Memorandum of Understanding (MOU) with the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to facilitate information sharing on terrorist financing.The Government of Poland implemented stopgap measures to freeze terrorist assets. In September, Polish law enforcement officials arrested an Algerian citizen wanted in Algeria on terrorist charges, and Polish officials cooperated with US law enforcement in the investigation of other terrorist cases.

Poland is a party to 9 of the 12 conventions and protocols relating to terrorism.The Polish Government has actively promoted the war on terrorism in bilateral and multilateral forums, and Poland continued to make progress in ratifying outstanding antiterrorism conventions. It ratified the Convention on the Suppression of Terrorist Financing, passed legislation authorizing signature of the Convention on the Suppression of Terrorist Bombing, and approved measures to attack the sources of terrorist finances, including amendments to broaden an anti-money laundering law.

Romania

Romania is a staunch ally of the United States in the global war against terrorism, providing full public and diplomatic support for US goals to counter terrorism. In 2003, about 1,200 Romanian troops served at the same time in Iraq and Afghanistan, and Romania has promised to maintain its commitment of troops in 2004. Romania suffered its first casualties in the war against terror in November 2003 when two Romanians were fatally shot in an ambush in Afghanistan. Romania has made its airspace, ground infrastructure, and naval facilities available to US and NATO forces engaged in the global war against terrorism.Throughout 2003, Romania consistently supported US-led initiatives in the UN and NATO against terrorism.

The Romanian Government has established internal mechanisms to combat terrorism, including adoption of a “National Anti-Terrorism Strategy” and guidelines to prevent the use of the Romanian financial and banking system for the purpose of financing terrorist acts. In 2003, Romania adopted a law establishing a new regime for the control of dual-use items and technologies. Bucharest is the site of the Southeast European Cooperation Initiative, a regional center that provides law-enforcement training and intelligence sharing on transborder criminal activities, including terrorism, for 12 member countries in Southeastern and Central Europe.

Romania has signed all 12 counterterrorism conventions and ratified all but the Convention for the Suppression of Terrorist Bombings.

Slovakia

Slovakia has acted as a staunch ally in the global war against terrorism and has made significant contributions in Afghanistan and Iraq, as well as in peacekeeping missions in the Balkans and elsewhere. The Slovaks sent a 75-person NBC contingent to Iraq, integrated into the Czech NBC unit. The Slovak unit was later replaced by an 82-person military engineering unit deployed to the Polish sector.The Parliament in February 2004 approved sending an additional 23 troops to Iraq. Slovakia sent a 40-person engineering unit to Afghanistan, which they have extended twice at the request of the United States.There is a proposal expected to pass Parliament to send an additional 16-person demining unit to Afghanistan to serve under the ISAF.

Slovakia has one of the largest per capita peacekeeping contingents, with more than 800 troops deployed worldwide. Approximately 100 Slovaks are deployed in the joint Czech-Slovak mechanized battalion assigned to the NATO Kosovo Force. Since 1998, the Slovak military has had five officers operating within the command structures of the NATO Stabilization Force in Bosnia and Herzegovina. Slovak troops also participate in UN peacekeeping missions in the Golan Heights, Ethiopia and Eritrea, Cyprus, and East Timor.

Shortly after September 11, 2001, terrorism was criminalized in Slovakia. Officials regularly make public statements denouncing terrorism after international events and on anniversaries such as September 11. There is an antiterror police unit within the Organized Crime Bureau, and the expulsion of a group of Real IRA members from Slovakia two years ago is a promising precedent for future cooperation if more such cases arise. Slovakia cooperates fully with US requests to freeze terrorist assets, and joint US-Slovak projects on export and border controls have been extremely successful.

Slovakia is a party to all 12 international conventions and protocols relating to terrorism.

Slovenia

There were no terrorist acts in Slovenia in 2003. Slovenia is planning to deploy special forces to Afghanistan in March 2004 and has made modest humanitarian contributions to Iraq. Slovenia has stepped up its efforts to mentor its non-EU neighbors on border security and enforcement against financial crimes. A very active Slovene NGO, the TOGETHER Center, is working to bring hope to children in the Balkans and in Iraq to prevent them from becoming a disaffected youth, and thus targets for recruitment by terrorists.

Slovenia is a party to 11 of the 12 international conventions and protocols relating to terrorism.

Spain

Spain is a firm ally in the global war against terrorism. Spain has authorized the use of Spanish military bases at Rota and Moron in support of military operations in Afghanistan, provided materiel support to Operation Enduring Freedom, and supported the reconstruction of Afghanistan with humanitarian and developmental assistance. In August, Spain deployed 1,300 troops to southern Iraq.

Spain has arrested and indicted dozens of individuals with possible links to al-Qaida since September 11. In January, a Spanish judge indicted Usama Bin Ladin and 34 others for complicity in the attacks of September 11; 15 of these individuals are now in Spanish custody. Spain has had some success in prosecuting terrorism cases. Sixteen North African nationals with suspected ties to al-Qaida operatives in the United Kingdom and France were released after their arrest in January. On 7 March, Spanish national police in Valencia arrested four Spaniards and one Pakistani.They were accused of belonging to a financial network involved in laundering money that was then sent to al-Qaida operatives. The Spanish Ministry of Interior also linked these suspects to a terrorist attack that took place in April 2002 in Yerba, Tunisia, in which 19 people were killed. On 12 March 2003, a Spanish judge ordered two of these suspects remanded to prison pending further investigation of the case.The other three suspects were released. In October, a judge cited health reasons for releasing on bail an Al-Jazeera television network journalist with alleged ties to the Spain-based al-Qaida network of Eddin Barakat Yarkas.

Spain made extensive progress in its decades-old campaign to eliminate domestic terrorist groups, including the Basque Fatherland and Liberty (ETA) organization—a radical terrorist group. Spanish police arrested 126 individuals in 2003 for association with or membership in ETA and dismantled several ETA operational terrorist cells, dealing a blow to ETA’s logistic, recruitment, and operational capabilities. In December, French police arrested top leaders of ETA’s military wing, who were allegedly planning attacks in Spain to coincide with the Christmas season.There are now more than 500 ETA members in Spanish jails and another 100 imprisoned in France.

In March, Spain’s Supreme Court upheld a ban passed in 2002 on Batasuna, the political wing of ETA.The ban freezes Batasuna’s funds and prohibits ETA supporters from serving on local and regional government seats. These steps have dampened the group’s political clout and cut off a major source of financing by depriving ETA members of the benefits of being able to channel funds from local government into pro-ETA activities.The number of ETA attacks and casualties also remained low.

Spanish and French authorities also made joint advances against the domestic terrorist group First of October Anti-Fascist Resistance Group, all but eliminating the group.

Spain is one of the primary advocates within the EU for enhancing mechanisms to fight terrorism. Spain led the effort in the EU to approve the EU-wide common arrest and detention order, which the EU approved in late 2001.

Spain and France are the first two countries to create “multi-national police investigation teams” under terms of the EU agreement reached in 2002.The agreement allows Spanish and French police forces to work in each other’s country investigating cases related to the ETA, Islamic terrorism, and other crimes.

Spain is a party to all 12 international conventions and protocols relating to terrorism and currently chairs the UN Counterterrorism Committee and co-chairs with the United States the Financial Action Task Force (FATF) Terrorism Finance Working Group. Spain is pressing to become a standing member of the G-8’s Counterterrorism Action Group on the basis of its high level of technical counterterrorism assistance to third countries.

Sweden

Sweden has provided good cooperation and support in the fight against terrorism in 2003. In July, it adopted legislation implementing the EU framework decision on terrorism. The new legislation defines acts of terrorism and imposes penalties beyond those for traditional criminal acts. The Swedish Government has been responsive to US requests for security measures to protect diplomatic and official installations and personnel in response to heightened threats. Sweden has participated in ISAF since its inception with a 45-person rotating unit that has included Special Forces and engineering personnel. In 2004, Sweden assumed chairmanship of the Financial Action Task Force. Sweden also decided on 19 February 2004 to contribute 16 persons to the ISAF in Kabul. This group will consist of staff officers and one domestic logistic unit. Sweden is studying the possibility of contributing to a Provincial Reconstruction Team in Afghanistan.

Sweden is a party to 11 of the 12 international conventions and protocols relating to terrorism.

Turkey

TheTurkish Government is a strong, long-term counterterrorism partner. In addition to dealing with major terrorist attacks on its soil this year, Turkey also combated several domestic terrorist groups that continue to threaten Turkish and US interests.

In November, four suicide bombers attacked Jewish and British targets in Istanbul in two separate but probably coordinated attacks that killed at least 61 people, including the British Consul General.On 15 November,Turkish operatives exploded truck bombs outside the Beth Israel and Neve Shalom synagogues, followed on 20 November by a second wave of attacks against the British Consulate and HSBC Bank.

Turkey maintained support for Operation Enduring Freedom in 2003. From June 2002 through February 2003, Turkey assumed leadership of the ISAF in Afghanistan. As part of this effort, Turkey provided approximately 1,400 peacekeepers to the mission and continues to have a military contingent in Afghanistan of 140 troops.Turkey also continued to permit Incirlik Airbase to be used for refueling for planes flying into Afghanistan.

The United States and Turkey met several times to discuss cooperation against the Kurdistan Freedom and Democracy Congress (KADEK), and in October, Secretary Powell reiterated the US commitment to assist Turkey in eliminating this threat. In October, KADEK—formerly known as the Kurdistan Workers’ Party (PKK)—made yet another name change to the Kurdistan People’s Congress (KHK or Kongra-Gel) in an effort to masquerade as a political party. KHK launched several attacks, which it claimed were in retaliation for losses the group suffered from Turkish counterinsurgency operations, and periodically threatened to increase its attacks against Turkish targets.

Turkish police arrested several members of the Revolutionary People’s Liberation Party (DHKP/C) during the course of the year.The DHKP/C—a virulently anti-US group that killed two US defense contractors and wounded a US Air Force officer during the Gulf war—continued to launch attacks in Turkey. In May, a DHKP/C female suicide bomber prematurely detonated her explosive belt in Istanbul, killing herself and wounding another. The group struck in June, attacking a bus carrying Turkish prosecutors in Istanbul with a remote-controlled bomb, and it launched several other bombings against official Turkish interests in August.

Turkey has signed and ratified all 12 international conventions and protocols concerning terrorism.

United Kingdom

The United Kingdom has been and remains one of the United States’ strongest allies in the global fight against terrorism. It continues to take important political, financial, and law enforcement steps to advance international counterterrorism efforts. The British Government was also a staunch ally in the international effort to enforce UN Security Council Resolution 1441 in Iraq. The British contributed more than 40,000 troops to the Iraqi conflict and continue to play a critical role in the Coalition’s efforts to construct a democratic, market-oriented Iraq that is a model for the region rather than a threat to its neighbors and global security.

Islamist terrorism poses a significant threat to the United Kingdom at home and to its interests overseas.The most dramatic and tragic evidence of this in 2003 came on 20 November when suicide bombers attacked the British Consulate and the offices of the British bank HSBC in Istanbul, Turkey, killing 33 people, including the British Consul General. A UK citizen was also killed in the suicide bomb attacks on 12 May on three residential compounds in Saudi Arabia.

In February, the British Government stepped up security in and around London in response to a terrorist threat. Her Majesty’s Government increased police presence around government buildings and London’s financial district, but security changes were most visible at Heathrow Airport where the British Government deployed soldiers and additional policemen. Security returned to normal after the threat window passed. British Airways briefly suspended all flights to Kenya in May and to Saudi Arabia in August due to other reports of terrorist threats in those regions. UK authorities cooperated closely with the United States to provide enhanced security for airline flights of concern during a period of heightened threat around the Christmas holidays.

In June, the British Government established the Joint Terrorism Analysis Center (JTAC), which is responsible for assessing and disseminating information about the terrorist threat to UK domestic and overseas interests. JTAC, an interagency body that includes both intelligence producers and consumers, works closely with the US Terrorist Threat Integration Center.The United States and United Kingdom are also planning to conduct a major joint counterterrorism exercise in 2005.

Since the attacks of September 11, British authorities have stepped up their investigative and intelligence collection efforts against Islamic extremists in the United Kingdom. A key objective is to reduce the threat of terrorism by stopping and disrupting it. Between September 11 and the end of 2003, the police have arrested 537 individuals under the Terrorism Act of 2000. Of these, 94 were charged with terrorism-related offenses under the act, 71 were charged with offenses under other legislation, and 263 were released without charge.

In January 2003, the British Government uncovered a North African network involved in the production and importation of toxins, including ricin, in the United Kingdom. Nine individuals associated with the ricin threat were charged with conspiracy to murder and other related charges, and their trials are slated to begin in May and September 2004.

Between October 2002 and October 2003, more than 50 new terrorism-related cases have been brought to the Crown Prosecution Service. British prosecutors also enjoyed some successful terrorism-related convictions, including 11-year sentences for two al-Qaida fundraisers—the latter marking the first conviction of an al-Qaida member in the United Kingdom. In addition, Islamic extremist Abdullah e-Faisal was convicted for “inciting racial hatred and incitement to murder” and sentenced to a nine-year jail term.

The United Kingdom and United States completed negotiations on a new extradition treaty in 2003 that will streamline the extradition process, but neither country has ratified the new treaty.The United Kingdom continues to assist in extraditing four individuals charged with terrorist acts in the United States or against US citizens, including a key suspect in the African bombings of 1998 and an Algerian suspected of involvement in the “Millennium Conspiracy” to blow up Los Angeles airport in 2000. Although all four individuals have lost appeals with Britain’s highest court, they have all exercised their right to make representations against their surrender to the United States to the Home Secretary, who has the final decision over their extradition. The Home Office is still awaiting a response to some of the queries on these cases it has since sent to the United States.

Training and financial assistance have been in the forefront of the United Kingdom’s bilateral counterterrorism relationships. The United Kingdom launched a new assistance program in 2003 aimed at increasing international capacity to counter terrorism and other threats in support of its bilateral and multilateral counterterrorism policy objectives. The United Kingdom anticipated spending ￡3.24 million in UK fiscal year 2003/04 on operational counterterrorism assistance aimed at counterterrorism experts in foreign governments, assistance to support the UN’s counterterrorism committee, and wider capacity-building initiatives.

The United Kingdom continued its vigorous efforts against terrorism in Northern Ireland in 2003. Security officials disrupted terrorist planning for attacks, defusing numerous bombs—including one in June larger than the explosive that went off in the Omagh bombing in 1998. During the course of the year, one suspect was arrested and charged in connection with Omagh. UK officials assisted with the Dublin prosecution of Real IRA (RIRA) leader Michael McKevitt, who was convicted of directing terrorism, and the Blair government decided to help fund a civil case brought by the families of the victims of Omagh. In April, five RIRA members were sentenced to a total of 100 years for a series of car-bombings in 2001. Sectarian violence persists, but marching season in 2003 was one of the quietest in decades, with only a few reports of violence.

The United Kingdom is a party to all 12 international conventions and protocols relating to terrorism. The United Kingdom actively campaigned in the EU, G-8, NATO, and UN for coordinated counterterrorism efforts and routinely lobbied UN members to become parties to the 12 antiterrorism conventions and protocols. It supported the G-8’s initiative in 2003 to create the Counter Terrorism Action Group (CTAG) and is an active CTAG participant.

Middle East Overview

The Middle East continued to be the region of greatest concern in the global war on terrorism. Major terrorist attacks occurred in Morocco, Saudi Arabia, Iraq, and Israel during 2003, highlighting the damage that terrorism can wreak on innocent people. Terrorist groups and their state sponsors continued terrorist activities and planning throughout 2003. Active groups included al-Qaida, Islamic Resistance Movement (HAMAS), Hizballah, Palestine Islamic Jihad (PIJ), Ansar al-Islam (AI), and the remnants of the Zarqawi network, among others. Despite these discouraging indicators, significant counterterrorism cooperation continued on the part of almost all countries in the region. Furthermore, the regime of Iraqi tyrant Saddam Hussein was ousted from power by a US-led Coalition conducting Operation Iraqi Freedom, marking an important advance for the global war on terrorism.

Across the region, governments demonstrated the political will to tackle the threat of terrorism on their soil and lent their weight to bilateral and multilateral efforts to fight terror. Terrorist assets were targeted, as most Middle East governments froze al-Qaida financial assets pursuant to UN Security Council Resolutions 1373, 1267, 1333, 1390, and 1455. Many countries provided essential support to Coalition military activities in the liberation of Iraq and have continued vital support to ongoing operations in Afghanistan. Several countries signed or became parties to the international conventions and protocols relating to terrorism. Every country hosting an American diplomatic and/or military presence responded to US requests to provide enhanced security, particularly during Operation Iraqi Freedom. The United States provided training throughout the region to augment the capacity of our allies in the fight against terrorism.

Saudi Arabia suffered two major, horrific terrorist attacks during 2003 and responded with an aggressive campaign against the al-Qaida network in the Kingdom. Saudi cooperation with the United States improved markedly in 2003, particularly in the sharing of threat information and wellpublicized steps to combat terrorist financing. Using its unique position in the Muslim world, Saudi Arabia also initiated an ideological campaign against Islamist terrorist organizations with the objective of denying extremists the use of Islam to justify terrorism.The Saudi Government has also widely publicized a rewards program for the capture of the Kingdom’s most-wanted terrorist suspects. Saudi security forces arrested more than 600 individuals on counterterrorism charges following the attacks on 12 May. In addition, Saudi and Yemeni officials have met to develop joint approaches to better secure their shared land border to check the influx of weapons into Saudi Arabia from Yemen.

There were no reported terrorist attacks against Western targets in Yemen in 2003. The Government of Yemen made a number of key al-Qaida-related arrests in 2003, but it raised concerns with its release of extremists without full disclosure of information and its inability to recapture escaped USS Cole suspects. The United States and Yemen continue joint counterterrorism training and cooperation, and there has been significant progress on standing up the Yemen Coast Guard.

The other states of the Arabian Peninsula also made important progress, particularly in locating and blocking terrorist finances, sharing information and intelligence on terrorists and terrorist groups, and strengthening law enforcement cooperation.

Morocco stepped-up its already robust counterterrorism actions following the tragic suicide bombings in Casablanca on 16 May.Taking swift action to identify the culprits, Moroccan authorities uncovered the involvement of several deadly terrorist groups and took decisive legal actions to address the threat. Egypt continued to be a leader in the counterterrorism fight and increased its dialogue with the United States on this issue. Algeria also remained at the forefront of regional counterterrorism cooperation, supporting Coalition efforts against al-Qaida while acting decisively against indigenous terror groups. Tunisia ratified the International Convention on the Suppression of the Financing of Terrorism in February 2003, making Tunisia a party to all 12 international conventions and protocols relating to terrorism.

Jordan took decisive legal steps against terror, indicting 11 individuals for the murder of USAID officer Laurence Foley, and also brought charges against possible al-Qaida and Ansar al-Islam members suspected of planning attacks against tourists and foreigners. Israel maintained its resolute stand against terrorism, weathering numerous casualties in terrorist attacks against civilians. Unfortunately, the Palestinian Authority (PA) continued to take insufficient steps to stop terrorist operations. Lebanon also remained problematic, as it continued to host numerous terrorist groups and refused to take actions against certain terrorist elements in the country.

[Eds. Note: Iran, Iraq, Libya, and Syria—which have been designated as state sponsors of terrorism—are discussed in Part 1 in the section on “State Sponsorship of Terrorism.”]

Algeria

Algeria continued to be a proactive and aggressive regional leader in the global Coalition against terrorism. Algeria’s support of US counterterrorism efforts on a case-by-case basis demonstrated its strong overall support of Coalition efforts against al-Qaida. In May 2003, Algerian security forces secured the release of 17 of the 32 European hostages kidnapped by a faction of the Salafist Group for Call and Combat (GSPC) in February and March. The GSPC is believed to be under the new leadership of Nabil Sahraoui (a.k.a. Abu Ibrahim Mustapha). On 11 September 2003, the GSPC issued a statement declaring allegiance to several jihadist causes and leaders, including al-Qaida and Usama Bin Ladin. Algerian law enforcement and security forces continued to pursue GSPC terrorist operatives, disrupting their activities and capturing or killing several of them. Algeria participated in a pan-Sahel regional counterterrorism seminar in Bamako, Mali, in October.

Algerian officials have stated that the number of active terrorists within the country has fallen from more than 25,000 in 1992 down to a few hundred today, due in large part to a series of successful offensives undertaken by Algerian security forces. Algeria has, in fact, made great strides toward eliminating terrorism in most parts of the country.

The Algerian Government has focused much of its counterterrorism efforts on the international level toward creating international consensus for an international convention against terrorism. This would include defining what constitutes an act of terror as distinct from an act of “national liberation.” To this end, Algeria hosted a summit in September 2002 of the African Union (formerly the Organization of African Unity—OAU) aimed at ensuring the implementation of the OAU’s 1999 Convention on the Prevention and Combating Terrorism. Algeria has strongly condemned acts of international terrorism.

With regard to enforcement and international agreements, Algeria has ratified all but one of the international conventions and protocols relating to terrorism. Algeria is gradually implementing, in its domestic legislative and regulatory systems, the requirements of these instruments, which may result—among other changes—in the extradition of wanted terrorists.

Algeria was among the first states to criminalize the financing of terrorism. The Finance Act of 2003 expanded these efforts by lifting banking secrecy regulations and formalizing procedures that banks and insurance companies must follow in reporting suspicious transactions to the Government’s Financial Information Processing Unit—which turns over actionable information to the courts. In addition, Algeria is seeking an extradition treaty with the United States, and President Bouteflika has proposed an international treaty, under UN auspices, that would replace the need for individual bilateral extradition treaties.

Algeria is a party to 11 of the 12 international conventions and protocols relating to terrorism.

Bahrain

Bahrain is providing important support to our counterterrorism efforts, particularly efforts to block the financing of terror groups. Bahrain has continued to respond positively to requests for assistance to combat terror financing; it has frozen about $18 million in terrorist-linked funds. Bahrain also continued to provide intelligence cooperation and made some significant arrests.

■ In February, the Government of Bahrain arrested five Bahrainis suspected of plotting terrorist attacks in Bahrain. In May, the Government released three of the five, claiming to have insufficient evidence to support a trial. In June and July, the other two were convicted—one by a civilian criminal court and one by court martial, for illegal gun possession. In December, the King reduced the sentence of the civilian from three years to two.

■ In April, Bahrain expelled an Iraqi diplomat for involvement in setting off an explosive device near the entrance of the headquarters of the US Navy Fifth Fleet on 24 March. The Government also arrested the bomber—an Iraqi Intelligence Service major—tried him in open court, and sentenced him to three years in prison.

Bahrain’s lack of a domestic conspiracy law hampers its ability to intervene against suspected extremist plots. This could encourage terrorists to value Bahrain as a potential logistic haven.

Bahrain is a party to five of the 12 international conventions and protocols relating to terrorism and is a signatory to the Convention for the Suppression of the Financing of Terrorism.

Egypt

The Egyptian and US Governments continued to deepen their already close cooperation on a broad range of counterterrorism and law-enforcement issues in 2003. The first US-Egypt Counterterrorism Joint Working Group meeting was held in Washington in July 2003. The United States continues to closely coordinate with Egyptian authorities on law enforcement and judicial matters involving terrorism. The Egyptian Government has agreed to provide assistance in an important terrorist trial scheduled to take place in New York in May 2004. Egyptian authorities, particularly the Central Bank, have tightened their assets-freezing regime, consistent with requirements under UNSC Resolutions 1373, 1267, 1333, 1390, and 1455 and E.O. 13224. Demonstrating Egypt’s commitment to stanch the flow of funds to terrorist organizations, Egypt passed strong anti-money laundering legislation in 2002, enabling it to establish an anti-money laundering financial intelligence unit in March 2003. Egypt has significant antiterrorism legislation in place and did not see the need to enact new laws this year.

The Egyptian Government continued to place high priority on protecting US persons, facilities, and interests before and continuing after the Iraq war.

There is a high state of security for Americans and facilities and for American forces both stationed in Egypt and transiting the country to the Gulf, by air or through the Suez Canal. Both government and religious officials continued to make statements supporting the war on terrorism and condemning terrorist actions around the world. Egypt has maintained its strengthened airport security measures and has instituted more stringent port security measures.

Itself a victim of terrorism in the past, Egypt is actively monitoring and rooting out old and new cells of groups with violent tendencies. In January 2003, 43 members of a jihad group known as Gund Allah (Soldiers of God) were arrested for planning attacks against US and Israeli interests.They will be tried in the MilitaryTribunal in 2004.The “zero tolerance” policy toward extremism has resulted in the arrest in October 2003 of 12 alleged members of Al-Takfir wa Al-Hijrah, in the continuing arrests of Al-Gama’at Al-Islamiyya (IG) members who do not agree with the historic leadership’s new policy of nonviolence, and in the discovery and arrest of extremist cells and nascent groups. A verdict is due in the spring of 2004 in the trial of 26 members (including three Britons) of the Islamic Liberation Party (Hizb Al Tahrir Al Islami), begun in October 2002. The prosecution has requested 25-year sentences for the defendants, charged with reviving an illegal, violent organization.

In October 2003, Egypt completed the release from prison of the historic leadership and as many as 1,000 members and supporters of the IG.This release, begun a year before, was based on what the Government considered to be a conversion in thought and religious values by the IG leadership, who authored several books and gave lengthy public interviews on their new nonviolent philosophy.This conversion has not been accepted by all IG members in Egypt and elsewhere and has given rise to reports in Egyptian media of new IG splinter cells who refuse to accept nonviolence.

The Egyptian judiciary is tough on terrorism.There is no plea bargaining in the Egyptian judicial system, and terrorists have historically been prosecuted to the full extent of the law. They are tried in Military Tribunals or in Emergency Courts, neither of which affords a right of appeal.There have been no terrorist cases tried in these courts this year. Press reports indicate that Egypt is actively involved with other nations to extradite Egyptian extremists from abroad. Egypt actively participates in a variety of bilateral counterterrorism and lawenforcement training opportunities. Egypt is also preparing to become a regional counterterrorism training hub for other Middle Eastern and North African nations.

Egypt is a party to nine of the international conventions and protocols relating to terrorism and is a signatory to an additional two, including the International Convention for the Suppression of the Financing of Terrorism.

Israel, the West Bank, and Gaza

Israel maintained staunch support for US-led counterterrorism operations as Palestinian terrorist groups conducted a large number of attacks in Israel, the West Bank, and Gaza Strip in 2003. HAMAS, the PIJ, and the al-Aqsa Martyrs Brigades—all of which the United States has designated as Foreign Terrorist Organizations pursuant to Executive Order 13224—were responsible for most of the attacks, which included suicide bombings, shootings, and mortar firings against civilian and military targets.Terrorist attacks in 2003 killed almost 200 people (mostly Israelis, as well as a number of foreigners, including 16 US citizens), a decrease from the more than 350 people killed in 2002.

On 15 October, Palestinian militants attacked a US diplomatic convoy in Gaza with an improvised explosive device, killing three Americans. To date, this was the most lethal attack ever to directly target US interests in Israel, the West Bank, or Gaza.The Popular Resistance Committee (PRC), a loose association of Palestinians with ties to various Palestinian militant organizations such as HAMAS, PIJ, and Fatah, claimed responsibility. Although that claim was later rescinded, and official investigations continue, the PRC remains the primary suspect in the attacks. At the end of the year, the Palestinian Authority (PA) had yet to identify the perpetrators and bring them to justice.

Israeli authorities arrested individuals claiming allegiance to al-Qaida, although the group does not appear to have an operational presence in Israel, the West Bank, or Gaza. Palestinian terrorist groups in these areas continue to focus their attention on attacking Israel and Israeli interests within Israel and the Palestinian territories, rather than engaging in operations worldwide.

Israel employed a variety of military operations in its counterterror efforts. Israeli forces launched frequent raids throughout the West Bank and Gaza, conducted targeted killings of suspected Palestinian terrorists, destroyed homes—including those of families of suicide bombers—imposed strict and widespread closures and curfews in Palestinian areas, and continued construction of an extensive security barrier. Israel expelled more than 12 alleged terrorists from the West Bank to Gaza in the fall of 2003. Israeli counterterrorism measures appear to have reduced the frequency of attacks;continuing attacks, however, show that the groups remained potent.

HAMAS was particularly active, carrying out more than 150 attacks, including shootings, suicide bombings, and standoff mortar-and-rocket attacks against civilian and military targets. The group was responsible for one of the deadliest attacks of the year—the suicide bombing in June on a Jerusalem bus that killed 17 people and wounded 84. Although HAMAS continues to focus on conducting anti-Israeli attacks, it also claimed responsibility for the suicide bombing at a restaurant adjacent to the US Embassy in Tel Aviv, demonstrating its willingness to attack targets in areas frequented by foreigners.

The PIJ remained active in 2003, conducting several deadly attacks against Israeli targets, and began using women as suicide bombers.The PIJ claimed responsibility for one of the deadliest suicide bombings of 2003—a suicide bombing in October at a Haifa restaurant that killed 21 people and wounded at least 50. The PIJ also claimed responsibility for the joint attack in January with the al-Aqsa Martyrs Brigade for a double-suicide bombing in Tel Aviv, which killed 23 people and wounded more than 100—the deadliest suicide bombing of the year.

The al-Aqsa Martyrs Brigade conducted numerous shooting attacks and suicide bombings in 2003. In August, a suicide bombing claimed by al-Aqsa in Rosh Ha’ayin killed two people and wounded at least 10. Al-Aqsa used at least three female suicide bombers in operations.

Hizballah remained a serious threat to the security of the region, continuing its call for the destruction of Israel and using Lebanese territory as a staging ground for terrorist operations. Hizballah was also involved in providing material support to Palestinian terrorist groups to augment their capacity and lethality in conducting attacks against Israel.

Israel arrested several Jewish extremists in 2003 who were planning terrorist attacks against various Palestinian targets. Several prominent Jewish extremists were sentenced to prison for planning to detonate a bomb near a girls’ school in East Jerusalem in 2002.

The PA’s efforts to thwart terrorist operations were minimal in 2003. The PA security services remained fragmented and ineffective.The services were also hobbled by corruption, infighting, and poor leadership. There are indications that some personnel in the security services, including several senior officers, have continued to assist terrorist operations.

Israel has signed all 12 international conventions and protocols relating to terrorism and is a party to eight, including the International Convention for the Suppression of the Financing of Terrorism.

Jordan

The Jordanian Government continued to strongly support global counterterrorism efforts while remaining vigilant against the threat of terrorism at home. Jordan was highly responsive to the security needs of US citizens in the country.

In 2003, Jordan pursued several terrorism-related cases, some of which involved attempts at weapons smuggling and border infiltration. Jordan indicted 11 individuals in May 2003 for the murder in 2002 of USAID officer Laurence Foley, and several are currently standing trial for his murder. In September, the State Security Court charged 13 Jordanians—allegedly affiliated with al-Qaida and Ansar al-Islam—with conspiring to carry out attacks against tourists and foreigners. Jordanian authorities requested that Norway extradite Mullah Krekar—the spiritual leader of Ansar al-Islam—for involvement in a terrorist plot.

Suspected terrorists continued attempts to exploit Jordanian territory to transport weapons to and from groups in neighboring states or to use Jordanian territory to facilitate terrorist attacks. Jordanian authorities have successfully intercepted weapons shipments and personnel transiting the country at virtually all of its borders. Although largely responsive to US requests on terrorist-related issues, the Jordanian Government has shied away from measures that would be unpopular with Jordan’s pro-Palestinian population.The Central Bank of Jordan rescinded instructions to commercial banks to freeze assets belonging to HAMAS-affiliated individuals in the face of harsh criticism from the public and Parliament, although the organization has not been active in Jordan since its leaders were expelled in 1999.

Jordan has signed 10 of the 12 international conventions and protocols relating to terrorism and is a party to eight, including the International Convention for the Suppression of the Financing of Terrorism.

Kuwait

Kuwait continued to act in concert with the US Government and with its neighbors against a number of domestic threats to Kuwaiti and foreign interests and also provided significant support to US efforts to stem terror financing. During Operation Iraqi Freedom, Usama Bin Ladin and a previously unknown domestic group, the Kuwaiti HAMAS movement, threatened to continue carrying out attacks against Kuwait for aiding Coalition forces. The four terror attacks carried out against Coalition forces between October 2002 and December 2003—which resulted in the death of one US Marine and a US defense contractor—have mobilized domestic counterterrorism efforts, but the potential for further attacks remains a concern. The Kuwaiti Government has taken significant measures to bolster force protection, and it also reacted swiftly and forcefully to detain and prosecute the perpetrators. However, some judges released suspects on bail pending trial and also commuted the sentences of others convicted in the attacks of 2002-03.

Kuwaiti officials and clerics also implemented preventative measures in the wake of terrorist bombings of Western housing compounds in Saudi Arabia in May and November. Soon after the May attacks, Kuwaiti security forces heightened alert levels. Kuwaiti officials and clerics also launched a vocal public campaign to denounce terrorism. In November, Kuwaiti clerics publicly applauded the recantation by extremist Saudi clerics of fatwas that encouraged violence and also discouraged their countrymen from engaging in jihad or harming Coalition forces based in Kuwait.

Kuwaiti officials have also heightened security along their border with Iraq to prevent militant infiltration and have also worked with Syria and Iran to develop procedures to increase intelligence sharing and enhance customs and bordermonitoring cooperation.

Kuwait also continued to implement every US-ordered terrorist-fund freeze. In August, the Government froze the assets of HAMAS over the objections of conservative elements of the Kuwaiti population.

Kuwait is a party to nine of the 12 international conventions and protocols relating to terrorism.

Lebanon

Despite a decrease from the previous year in anti-US terror attacks in Lebanon and the introduction of counterterrorism legislation, Lebanon remains host to numerous USdesignated terrorist groups. At the same time, a number of legislative, legal, and operational initiatives showed some promise in Lebanon’s counterterrorism efforts. However, Beirut continues to demonstrate an unwillingness to take steps against Lebanese Hizballah, the PIJ, the Popular Front for the Liberation of Palestine-General Command (PFLPGC), the Abu Nidal organization (ANO), and HAMAS.

The Lebanese Government recognizes as legitimate resistance groups those organizations that target Israel and permits them to maintain offices in Beirut. Beirut goes further by exempting what it terms “legal resistance” groups—including Hizballah—from money-laundering and terrorism-financing laws. Lebanese leaders, including President Emile Lahud, reject assessments of Hizballah’s global reach, instead concentrating on the group’s political wing and asserting that it is an integral part of Lebanese society and politics. In addition, Syrian and Iranian support for Hizballah activities in southern Lebanon, as well as training and assistance to Palestinian rejectionist groups, help promote an environment where terrorist elements flourish. Hizballah conducted multiple attacks in the Shab’a Farms region during 2003, including firing antitank rockets.

The Lebanese security forces remain unable or unwilling to enter Palestinian refugee camps—the operational nodes of terrorist groups such as ‘Asbat al-Ansar and the Palestinian rejectionists—and to deploy forces to much of the Beka’a Valley, southern Beirut, and the south of the country bordering Israel. Furthermore, Syria’s predominant role in Lebanon facilitates the Hizballah and Palestinian rejectionist presence in portions of Lebanon.

The Lebanese Government acknowledges the UN 1267 Sanctions Committee’s consolidated list but does not acknowledge groups identified by only the US Government: Beirut will not take action against groups designated solely by the United States. In addition, constitutional provisions prohibit the extradition of Lebanese nationals to a third country. Lebanese authorities further maintain that the Government’s provision of amnesty to Lebanese individuals involved in acts of violence during the civil war prevents Beirut from prosecuting many cases of concern to the United States—including the hijacking in 1985 of TWA 847 and the murder of a US Navy diver on the flight—and the abduction, torture, and murder of US hostages from 1984 to 1991. US courts have brought indictments against Hizballah operatives responsible for a number of those crimes, and some of these defendants remain prominent terrorist figures.

The Lebanese Government has insisted that “Imad Mugniyah”—wanted in connection with the TWA hijacking and other terrorist acts, who was placed on the FBI’s list of mostwanted terrorists in 2001—is no longer in Lebanon. The Government’s legal system also has failed to hold a hearing on the prosecutor’s appeal in the case of Tawfiz Muhammad Farroukh, who—despite the evidence against him—was found not guilty of murder for his role in the killings of US Ambassador Francis Meloy and two others in 1976.

In October, the Lebanese National Assembly passed two bills strengthening existing legislation against money laundering and terrorist financing. Law 547—while differentiating between terrorism and what Lebanon calls the “legal resistance” of Hizballah and Palestinian rejectionists—expands existing legislation on money laundering, making illicit any funds resulting from terrorism. Law 553 stipulates penalties for persons who financially support terrorist acts or organizations. A Special Investigations Commission in 2003 investigated 245 cases involving allegations of money laundering, including 22 related to terrorist financing. No accounts used for financing terrorism—as defined by Beirut—were discovered in Lebanese financial institutions. Signifying the difficulty Lebanon will have in enforcing the new legislation, the Central Bank in September asked Lebanese financial institutions to identify accounts held by six HAMAS leaders whose assets are the target of a US freeze.The inquiry sparked a public uproar and caused the Central Bank to end the investigation.

Lebanon has taken other counterterrorism measures in 2003, primarily directed against Sunni extremists, including those affiliated with al-Qaida. For instance:

■ In May, a military tribunal convicted eight individuals of attempting to establish an al-Qaida cell in Lebanon.

■ In July, Lebanese security forces began a series of arrests in connection with the bombing in April of a McDonald’s, part of a series of bombings of Western food outlets during 2002-03.

■ In September, military tribunals commenced hearing the cases of more than 40 individuals charged with planning or executing the series of restaurant attacks and planning to assassinate the US Ambassador to Lebanon and bomb the US Embassy in Beirut.

■ In October, the Lebanese Government arrested three men and indicted 18 others in absentia on charges of preparing to carry out terrorist attacks and forging documents and passports.

■ The Lebanese Government continued to cooperate with US officials in the investigation of the murder in November 2002 of a US citizen in Sidon.

■ In December, Lebanese forces personnel cooperated with US Embassy security when a Lebanese man approached the Embassy carrying a bag containing TNT, nitroglycerin, and a detonator.

■ In late December, a military tribunal sentenced 25 members of a terrorist group accused of targeting US official and commercial targets to prison terms ranging from six months to life.

■ Lebanon is a party to 10 of the 12 international conventions and protocols relating to terrorism.

Morocco

The Government of Morocco has remained a steadfast ally in the war on terror in the face of unprecedented terrorist activity in the Kingdom in 2003. King Muhammad VI has unambiguously condemned those who espouse or conduct terrorism, has been a consistent voice for tolerance and moderation, and has worked to keep Rabat firmly on the side of the United States against extremists. Domestically, Morocco’s historical record of vigilance against terrorist activity remained uninterrupted in 2003.

Despite these efforts, on 16 May, suicide bombers simultaneously detonated bombs at restaurants, hotels, and a Jewish cultural center in the seaside city of Casablanca, killing 42—including many of the bombers—and wounding approximately 100 others. Moroccan authorities quickly identified the bombers as local adherents of the “Salafiya Jihadiya” movement. In the following months, investigators learned that many of those involved in orchestrating the attacks were Moroccan extremists who had trained in Afghanistan and had links to North African extremist groups—mainly the Moroccan Islamic Combatant Group, the Libyan Islamic Fighting Group, and al-Qaida.

The attacks underscored the danger of terrorism from domestic extremists and their international allies, and Moroccan authorities reacted swiftly to reduce the threat. Days after the attacks, the Moroccan legislature passed a law that broadened the definition of terrorism, proposed heavy sentences for inciting terrorism, expanded the power of authorities to investigate suspected terrorists, and facilitated prosecution of terrorist cases. Throughout the summer and fall, authorities arrested hundreds of terrorist suspects and sentenced dozens to lengthy prison terms and, in some cases, execution. Courts tried in absentia extremists located overseas who were suspected of facilitating the attacks in Casablanca and issued warrants for their arrest. The King also took measures to facilitate greater information sharing between the country’s security services and national police force. FP

Morocco is a party to 10 of the 12 international conventions and protocols relating to terrorism, including the International Convention for the Suppression of the Financing of Terrorism.

Oman

Oman continued to provide public statements of support for the global war on terrorism and has been responsive to requests for Coalition military and civilian support. During the last two years, the Government has implemented a tight antimoney laundering regime, including surveillance systems designed to identify unusual transactions. Omani financial authorities have committed to freezing the assets of any UNlisted individual found in Oman.There were no incidents of terrorist activity in Oman in 2003.

Oman has become a party to 10 of the 12 international conventions and protocols relating to terrorism but has not yet acceded to the other two, including the International Convention for the Suppression of the Financing of Terrorism.

Qatar

The Government of Qatar provided the United States with significant counterterrorism support during 2003, building on the bilateral cooperation it has maintained since September 11. Qatar provides ongoing support for Operation Enduring Freedom in Afghanistan and is a key regional ally. Amir Hamad bin Khalifa al-Thani has pledged his Government’s full support to the global war on terrorism. When requested, Doha has provided additional security for US installations and facilities.

Doha has had some success in disrupting terrorist activity, although the security services traditionally have monitored extremists passively rather than attempting to penetrate or pursue them. Members of transnational terrorist groups and state sponsors of terrorism are present in Qatar.The security services’ limited capabilities make it difficult for them to warn against or disrupt a terrorist attack by al-Qaida or affiliated groups.

Qatar remains cautious about taking any action that would cause embarrassment or public scrutiny when Gulf Cooperation Council nationals are involved.

Doha acceded to a number of international agreements during 2003. It also promulgated a revised version of its antimoney laundering law and drafted a criminal law to address terrorist-financing crimes.This law broadened the definition of money laundering to include any activities related to terrorist financing. It authorizes the Central Bank to freeze suspicious accounts. Doha participated in three anti-money laundering training courses organized by the US Government. Legislation provides for a financial intelligence unit, although it has not yet been effectively established.

Qatar is a party to seven of the 12 international conventions and protocols relating to terrorism.

Saudi Arabia

The terrorist attacks in Saudi Arabia on 12 May and 9 November galvanized Riyadh into launching a sustained crackdown against al-Qaida’s presence in the Kingdom and spurred an unprecedented level of cooperation with the United States. Riyadh has aggressively attacked al-Qaida’s operational and support network in Saudi Arabia and detained or killed a number of prominent operatives and financial facilitators.

The attack of 9 November, which resulted in the deaths of a number of Muslims and Arabs during the holy month of Ramadan, transformed Saudi public acceptance of the widespread nature of the threat in the Kingdom.This acceptance has facilitated increased security and counterterrorism efforts by the Saudi Government, including stepped up security at a variety of locations throughout the country, such as residential facilities.

The attacks also led Riyadh to implement a variety of programs aimed at directly combating terrorist activity. In early May 2003, the Saudis began to publicize their counterterrorist efforts, including naming 19 individuals most wanted by the security services for involvement in terrorist activities. In early December, Riyadh announced the names of 26 individuals—including the seven remaining fugitives from the list of 19—wanted for terrorist-related activities and provided background information on the suspects to help the public to identify them. Soon thereafter, Saudi security forces killed operative Ibrahim bin Muhammad bin Abdallah al-Rayyis, a terrorist named on the list. Also in early December, Saudi authorities announced a rewards program—ranging from $270,000 to $1.87 million—for information leading to the arrest of suspects or the disruption of terrorist attacks and have used local newspapers to publish pleas from operatives’ family members to turn themselves in to authorities.

Since May, Riyadh has arrested more than 600 individuals during counterterrorism operations and continues investigating the Riyadh attacks. Saudi security forces have suffered significant casualties while conducting counterterrorism operations and raids. Raids in Mecca, Riyadh, and Medina led to arrests and document seizures and netted large quantities of explosives and a variety of weapons. In July alone, security services seized more than 20 tons of explosive-making materials in Qassim. In November, the authorities seized a truck bomb at a reported al-Qaida safehouse in Riyadh. Meanwhile, Saudi officials met several times with their Yemeni counterparts in an effort to stanch the flow of weapons into Saudi Arabia from Yemen.

During the past year, Riyadh expanded its cooperation with the United States in combating terrorist financing. The Government prohibited the collection of cash donations at mosques or commercial establishments, and in May the central bank issued a banking circular prohibiting charities from depositing or withdrawing cash or transferring funds abroad. In August 2003, Saudi Arabia adopted a new anti-money laundering and antiterrorist financing law, which criminalized money laundering and terrorist financing.The law also established a single financial intelligence unit, as required by the Financial Action Task Force, to collect against and analyze suspicious financial transactions and placed stringent “know your customer” requirements in the banking system. The Kingdom also established with the United States a Joint Task Force on Terrorist Financing to facilitate law-enforcement cooperation at the operational level. On 22 December, the United States and Saudi Arabia publicly announced their request to the UN 1267 Sanctions Committee to add the names of two organizations and one individual to its consolidated list.

On both the domestic and international fronts, Saudi Arabia initiated an ideological campaign against Islamist terrorist organizations, using its unique credentials as the custodian of Islam’s two holiest shrines. Senior Saudi Government and religious officials espouse a consistent message of moderation and tolerance, explaining that Islam and terrorism are incompatible. Notably, in October speeches at the Organization of Islamic Conference Summit in Malaysia and later in Pakistan, Crown Prince Abdullah recommended to a broader audience concrete steps to counter extremism and improve relations between Muslims and non-Muslims.

For its part, Saudi Arabia has expressed its commitment to undertake internal political, social, and economic reforms aimed at combating the underlying causes of terrorism, and authorities have worked to delegitimize or correct those who would use Islam to justify terrorist acts. In early December, jailed cleric Ahmed al-Khalidi renounced his previous endorsement of violent jihad. Khalidi’s statement followed similar public renunciations by extremist clerics Shaykh Ali bin Ali al-Khudayr and Nasir al-Fahd.

Saudi Arabia provided essential support to Operation Iraqi Freedom and continues to support Operation Enduring Freedom in Afghanistan.

Saudi Arabia has signed nine of the 12 international conventions and protocols relating to terrorism and is a party to six.

Tunisia

The Government of Tunisia has publicly supported the international Coalition against terrorism and has responded to US requests for information and assistance in blocking financial assets. Tunis’s active stance against terrorism has been reinforced by its own recent experience with international terrorism. In April 2002, a suicide truck bomb detonated outside the el-Ghriba synagogue on the island of Djerba, killing more than 20.

In response to terrorism, the Government of Tunisia has taken steps to strengthen its laws and international agreements. The Tunisian legislature in December 2003 passed a comprehensive law to “support the international effort to combat terrorism and money laundering.”

On the enforcement front, in March, Tunis issued a warrant for the arrest of Khalid Sheikh Mohammed for his role in the suicide truck bombing of the el-Ghriba synagogue in 2002. In addition, Belgacem Nawar, an uncle of Djerba suicide bomber Nizar Nawar, remains in Tunisian custody and is charged with complicity in the attack.

Tunis has consistently emphasized the threat that terrorism poses to security and stability in the region. Further, it has encouraged Libya to abandon terrorism and, in particular, to reach an agreement with France on additional compensation for the UTA airliner bombing of 1989. Domestically, the Tunisian Government has prohibited the formation of Islamist groups, which it believes pose a terrorist threat.

After the terrorist bombing of the UN compound in Baghdad,Tunis expressed its deep concern over the bombing and stated that it “firmly rejects any action aimed at undermining UN efforts to help Iraq and its brotherly people to recover security and stability and to complete the country’s reconstruction process.”

Since September 11, 2001,Tunis has each year called for an international conference to address the root causes of terrorism.

Tunisia ratified the International Convention on the Suppression of the Financing of Terrorism in February 2003, making it a party to 11 of the 12 international conventions and protocols relating to terrorism.

United Arab Emirates

In 2003, the United Arab Emirates continued to provide outstanding counterterrorism assistance and cooperation. The UAE Government publicly condemned acts of terrorism, including the attack in August against UN headquarters in Baghdad and the attack in November against a housing compound in Riyadh. In September, the UAE successfully hosted the annual International Monetary Fund/World Bank meetings, an event marked by close cooperation between the Dubai police and UAE armed forces.

In suppressing terrorist financing, the UAE Central Bank continued to aggressively enforce anti-money laundering regulations. Tightened oversight and reporting requirements for domestic financial markets resulted in a stronger legal and regulatory framework to deter abuse of the UAE financial system. The Central Bank has provided training programs to financial institutions on money laundering and terrorist financing.

It has also investigated financial transactions and frozen accounts in response to UN resolutions and internal investigations, as well as begun registering hawala dealers.The UAE has frozen the accounts of terrorist entities designated by the UN, and the US Government has provided the UAE with antiterrorism and anti-money laundering training, as well as technical assistance for bankers, prosecutors, judges, and police.

The UAE has provided assistance in several terrorist investigations. In early 2003, the UAE became a party to the 1973 Convention on the Prevention and Punishment of Crimes against Internationally Protected Persons.

The UAE is a party to eight of the 12 international conventions and protocols relating to terrorism.

Yemen

There were no reported terrorist attacks against or kidnappings of Westerners in Yemen in 2003. The Republic of Yemen Government continued to cooperate with US law enforcement and to take action against al-Qaida and local extremists in 2003, including arresting several al-Qaida- associated individuals, disrupting an al-Qaida-affiliated cell targeting Western interests, and prosecuting and convicting the perpetrators of the shootings of three Americans in Jibla on 30 December 2002. Abed Abdulrazak al-Kamel, the shooter, and Ali Ahmed Mohamed Jarallah, the planner, were tried, convicted, and sentenced to death in separate trials in 2003. On 1 December 2003, a three-judge panel affirmed the death sentence of al-Kamel, who will appeal the decision to the Yemen Supreme Court. Court officials expect that the conviction will be upheld and passed to President Saleh, who is likely to sign off on the order to carry out the sentence. Post representatives attended al-Kamel’s trial and appeal proceedings, which were relatively transparent and openly reported in the local media.

Yemen publicly expressed its support for the global war on terrorism. In meetings with senior US officials, President Saleh underscored Yemen’s determination to be an active counterterrorism partner.

However, there is still more work to be done to improve counterterrorism capabilities, including implementing a Maritime Security Strategy and increasing border security.Ongoing US-Yemeni cooperation includes counterterrorism training for Yemeni military forces, establishment of Yemeni Coast Guard capabilities (including seven 44-foot USmanufactured patrol boats arriving February 2004), and equipment and training for Yemen’s Terrorist Interdiction Program.

Yemeni authorities arrested several high-profile al-Qaida associates in 2003. In late November, authorities arrested Muhammad Hamdi al-Ahdal (a.k.a. Abu Asim al-Makki)—the senior-most extremist in Yemen—who has supported mujahedin and terrorist operations throughout the Middle East and in Chechnya. In late September,Yemeni authorities arrested several members of an al-Qaida-affiliated cell planning attacks against a variety of targets in the country. Following the attack in mid-June on a medical assistance convoy in the Abyan Governorate, US-and UK-trained Yemeni Central Security Forces (CSF) raided a facility used by the Aden-Abyan Islamic Army (AAIA)—the local extremist group suspected of orchestrating and conducting the attack—and made a number of arrests. Consistent, but unconfirmed, reports from the press and other sources put the number of extremists killed or captured at between 20 and 30. CSF also indicated that a large amount of explosives and weapons were seized.

In October 2003, despite repeated statements that AAIA leader Khalid Abd-al-Nabi was dead, Yemeni officials revealed that he was not killed in the confrontations between the hardline Islamic group and a Yemeni army antiterrorism unit. Instead, al-Nabi surrendered to the Yemeni authorities, was released from custody, and is not facing charges for any of his activities. Earlier in 2003, authorities arrested al-Qaida operative Fawaz al-Rabi’I (a.k.a. Furqan) and al-Qaida associate Hadi Dulqum.

Land border security, particularly the long frontier with Saudi Arabia, is a major concern for Yemen. In the aftermath of the Riyadh bomb attacks in May 2003, the Government has improved cooperation with its Saudi neighbors. Representatives of both countries met several times in 2003 to discuss border security and ways to impede the flow of weapons from Yemen to Saudi Arabia.The Ministry of the Interior has an ambitious plan to establish 18 districts along the Yemeni-Saudi border to provide antismuggling defenses. In keeping with a bilateral security agreement, Sanaa and Riyadh have exchanged prisoners and terror suspects, including an operative from the Saudis most-wanted list.

The escape of 10 prisoners—including several suspects in the USS Cole bombing of October 2000—from an Aden jail in April was a setback to bilateral counterterrorism efforts. Although Sanaa responded quickly, dismissing two senior security officers and several prison guards, eight of the escapees have not yet been apprehended.

Following the model of other Arab countries, including Egypt, an Islamic scholarly commission formed in August 2002 continued its dialogue with detainees arrested in connection with extremism and/or terrorist attacks, which reportedly include Yemeni returnees from Afghanistan and members of the Al Jihad organization. Before being released, the detainees are screened by Yemen’s Political Security Organization and commit to uphold the Yemeni constitution and laws, the rights of non-Muslims, and the inviolability of foreign interests. Ninety-two detainees were released post-Ramadan in 2003.

In the latter part of 2003, senior government officials, including President Saleh, publicly announced the detainees’ release—some of whom may have ties to al-Qaida and other extremist groups—because they reportedly had renounced violence. The public announcement of the releases preceded the sharing of information with the US Government, which has now identified specific concerns with several of the individuals released and is working with the Government on the issue.

Several terrorist organizations continued to maintain a presence in Yemen throughout 2003. HAMAS and PIJ are recognized as legal organizations—and HAMAS maintains offices in Yemen—but neither has engaged in terrorist activities, and PIJ does not have any known actual or operational presence. Al-Qaida is attempting to reconstitute an operational presence in Yemen. Other international terrorist groups with a presence in Yemen include remnants of the Egyptian Islamic Jihad and al-Gama’a al-Islamiyya.

Yemen is a party to eight of the 12 international conventions and protocols relating to terrorism.

Western Hemisphere Overview

The international terrorism threat in the Western Hemisphere remained low during 2003 compared to other world regions. Even so, the region is by no means exempt from exploitation by groups that would use it to seek safehaven, financing, illegal travel documentation, or access to the United States via long-established narcotics and migrant-smuggling routes.The domestic terrorist threat remained high in Colombia and to a lesser extent in Peru.

Political will to combat terrorism remained steady in the Western Hemisphere during 2003, although efforts to update essential counterterrorism legislation were uneven. In addition, operational counterterrorism capacity and expertise remains lacking in many states in the hemisphere. Nevertheless, countries in the region actively continued efforts to fortify hemispheric border and financial controls to prevent or disrupt terrorism-related activities on their territories to the greatest extent possible.

The Organization of American States (OAS) Inter-American Committee Against Terrorism (CICTE, Spanishlanguage acronym)—a body under the Organization of American States—continues to set the standard among regional institutions through its effort to institutionalize the long-term international campaign against terrorism, according to the chair of the United Nations Counterterrorism Committee in March 2003. During a very active year under strong Salvadoran leadership, CICTE convened the first meeting of its National Points of Contact in Washington in July with the aim of fostering working-level contact and information sharing throughout the year. In July 2003, the Inter-American Convention Against Terrorism entered into force after six countries deposited their instruments of ratification (Antigua and Barbuda, Canada, El Salvador, Mexico, Nicaragua, and Peru). As 2004 commenced, another two states—Panama and Venezuela—ratified the convention. During its successful Fourth Regular Session in Montevideo,OAS member states agreed to enhance CICTE’s mandate to effectively address threats to seaport and aviation security, as well as cybersecurity.

Money flowing to Islamic terrorist organizations continued to be a primary counterterrorism focus.To strengthen the efforts of friends in the region to disrupt potential terrorism fundraising activity, the United States continued to actively support the development of the “Three Plus One” (3+1) Counterterrorism Dialogue with partners Argentina, Brazil, and Paraguay. Meetings in Brasilia and Asuncion during 2003 led to new agreements on mutual capacity building in the areas of border security and financial controls.The United States looks forward to participating in 3+1-sponsored programs during 2004 and to hosting the next senior-level meeting in Washington in the fall.

Governments throughout the Southern Cone were active on the legal front against suspected terrorist activity. Uruguay, Paraguay, and Brazil took action to convict or extradite suspected international terrorists, either on terrorism or on criminal charges.The Argentine investigating judge in the suspected Hizballah bombing of the Argentine-Jewish cultural center in 1994, which killed 86 people, issued international arrest warrants for several Iranian Government officials who were assigned to Buenos Aires at the time, as well as the head of Hizballah’s terrorist wing. Efforts to extradite the former Iranian ambassador to Argentina failed for a lack of evidence, and by the end of the year, the investigating judge had been replaced by order of an Argentine court. The trial, which began in 2001 against 20 Argentines believed to form the local connection in the bombing, continued into 2004.

Colombia continued to experience terrorist violence as the Revolutionary Armed Forces of Colombia (FARC) and other narcoterrorist groups sought to respond to an increasingly aggressive Colombian military posture with wanton terrorist attacks against civilians in Colombia’s urban areas.The El Nogal Club car bomb in February that killed 36 innocent civilians drew a swift condemnation from the OAS. Also in February, the FARC murdered American civilian contractor Thomas Janis and Colombian soldier Luis Alcides Cruz, whose plane had made an emergency crash landing in southern Colombia while conducting a counter-drug mission. Three other American aircraft crew members were taken hostage by FARC elements in the incident and at publication press time remained in FARC hands, along with many others, mostly Colombian hostages.

Under President Uribe, the Colombian military, police, and intelligence forces scored significant victories in 2003 against the FARC, National Liberation Army (ELN), and United Self-Defense Forces of Colombia (AUC) terrorist groups. They began to strike hard at the FARC’s leadership ranks with targeted operations, spurred a sharp increase in desertions from the terrorist ranks, initiated peace talks and a pilot demobilization program with large elements of the AUC, invigorated anti-kidnapping efforts, and eradicated record levels of coca and poppy cultivation to cut off sources of funding for narcoterrorists.

The United States continued a long-term cooperative relationship with Canada by hosting another session of the Bilateral Consultative Group on Terrorism. Canada also was an active participant in the second Top Officials terrorist incident response exercise in May, and both countries are committed to supporting the capacity-building work of the Counterterrorism Action Group assistance donor countries, created by the G-8 countries in 2003.

The United States worked closely with several countries in the region, particularly Mexico, to respond in a coordinated, prudent fashion to emerging aviation security threats affecting American and foreign citizens.The US Government also has worked cooperatively with Mexico to implement a security program on its border with the United States.

Cuba, one of the seven state sponsors of terrorism, is discussed in the state sponsorship portion of this report.

Bolivia

There were no significant acts of international terrorism in Bolivia in 2003. The Government signed the Inter-American Convention AgainstTerrorism in 2002, but it has not yet been ratified. Bolivia’s financial investigations unit actively collaborated with the US Embassy to share information about possible terrorist-linked financial transactions, prevent the abuse of Bolivian financial institutions by terrorists, and enhance the monitoring and enforcement of financial networks.

Despite many resource constraints, corruption, political tampering, and lack of expertise in handling sophisticated international investigations, the Government made progress in several—mostly domestic—terrorist-related cases. Most significantly, suspected National Liberation Army-Bolivia organizer Colombian Francisco Cortes and two Bolivian radical members of the Movement Towards Socialism party were arrested in 2003 and charged with espionage, terrorism, and subversion after they were found with weapons and organizational materials about guerrilla networks and plans to instigate violent revolution in Bolivia.

On 15 August, the Government of Bolivia signed the Asuncion Declaration in which several South American nations committed themselves to support Colombia in its ongoing struggle against terrorism and drug trafficking.

Bolivia’s Government maintained the policy of forcibly eradicating illegal coca plants to help ensure that Bolivia does not revert to its former status as a major source of cocaine, which is the major economic underpinning of terrorism in the Andes. Militant illegal coca growers (cocaleros) are thought to be responsible for various domestic terrorism events, and there is concern that they may have foreign help to make their attacks more deadly. On 12 November, eight counternarcotics agents were kidnapped and beaten in the Yungas region. Similarly, in the Chapare region five members of the security forces were killed and 25 wounded through November by improvised explosive devices (IEDs) that exploded during coca eradication operations. Cocaleros are suspected of planting devices that have become increasingly sophisticated and may indicate outside technical assistance.Three cocaleros have been indicted for planting IEDs; others are suspected of sniper ambushes of security forces. Likewise, in the Chapare, in 2003 prosecutors made progress in the case of torture, rape, and murder of policeman David Andrade and his wife in 2000, and several cocaleros have been indicted or implicated in the crimes.

Bolivia is party to all 12 United Nations conventions and protocols related to terrorism and to one OAS counterterrorism convention.

Chile

The Government of Chile is a consistent and active supporter of US counterterrorism efforts and has taken an active interest in the activities of Islamic extremists connected to the Triborder area of Argentina, Brazil, and Paraguay and their potential links to the Free Trade Zone in Iquique, Chile. Chile continued its active support of US counterterrorism efforts in various international forums. Chile holds the chair of the UN’s al-Qaida and Taliban sanctions committee and worked to improve the effectiveness of the sanctions.With Chile hosting the Asia-Pacific Economic Cooperation in 2004, President Ricardo Lagos listed security as the first of four points on which Chile would focus—-in particular, security of trade and travel. In the Asuncion Declaration signed 15 August, President Lagos joined other South American leaders in condemning terrorism and drug trafficking. The declaration also expressed solidarity with Colombia in its domestic fight against terrorism. Similarly, Chile’s UN Ambassador noted current UN sanctions were only partially enforced in many countries, and some were reluctant to submit terrorists’ names to the UN.The Foreign Minister added that Chile was “a country willing to assume challenges and responsibilities.”

Chilean law enforcement agencies were consistently cooperative in investigating links to international terrorism. The ability to conduct counterterrorist activities is hampered by a requirement that any investigation be directly related to prosecutable criminal offenses. The plainclothes investigations police (PICH—roughly equivalent to the FBI) continued to investigate several terrorism-related cases, but no prosecutions were developed.

The Chilean Congress passed a new money-laundering statute in September 2003 to cover terrorist finances and expand the Government’s ability to freeze and seize assets.The new provisions have yet to be applied in a criminal case, and it remains unclear how the statute will operate in practice or how swiftly Chile will be able to react against terrorist assets identified by other governments or international institutions. The same legislation created a Financial Analysis Unit (UAF) to investigate suspicious transactions reported by financial institutions, but the Constitutional Tribunal ruled some of the UAF provisions to be unconstitutional. The Government is working to restore the UAF’s ability to operate effectively and constitutionally.The current extradition treaty between Chile and the United States is more than 100 years old and has never been updated. Efforts are under way to explore negotiation of a new and viable extradition treaty.

Although no incidents of explicit terrorism occurred in Chile in 2003, terrorist-like tactics were employed in several cases, particularly in protest to the US-led invasion of Iraq. For example, a protester threw a Molotov cocktail at the US Embassy perimeter wall in March to protest policy on Iraq. Carabineros (uniformed police) guarding the embassy quickly arrested the perpetrator. Although two suspicious letters containing white powder delivered to the embassy and a telephonic bomb threat were all determined to be hoaxes, the Carabineros supplied HAZMAT teams and bomb-sniffing dogs in short order. In March, small bombs targeted Bank of Boston branches in Santiago and a BellSouth office in Concepcion. A similar bomb exploded at the Court of Appeals in Temuco. There were no injuries, no claim of responsibility, and no arrests made in any of the blasts. In March and April, the Chilean-American Binational Centers were subject to violent protests, some vandalism, and bomb threats by Chileans opposed to US policy in Iraq.

In August 2002, Chile requested the extradition from Brazil of former Manuel Rodriguez Patriotic Front leader Mauricio Hernandez Norambuena to finish his sentence for the murder of rightwing Chilean Senator Jaime Guzman in 1991. Hernandez escaped prison in 1996.The Brazilian Attorney General ruled that Hernandez should be extradited to Chile, but the Brazilian Supreme Court must approve the decision—a process said to be in the final stages and likely to result in extradition in the near term.

Chile is a party to all of the 12 international conventions and protocols relating to terrorism.

Colombia

Colombia fully comprehends the devastation caused by terrorism as it has faced large-scale domestic terrorism for several decades. From the day the Uribe Administration assumed office in August 2002, it has demonstrated a firm resolve to combat terrorists of all stripes.The Government of Colombia is supportive of US Government efforts to combat terrorist acts, target terrorist finances, and cooperate with extradition requests. Colombia continued to speak out forcefully and often against terrorist organizations throughout the year.

Colombia continued its struggle against the country’s three main terrorist groups—the Revolutionary Armed Forces of Colombia (FARC), the National Liberation Army (ELN), and the United Self-Defense Forces of Colombia (AUC)—all of which were redesignated by the United States as Foreign Terrorist Organizations in 2003. In June, the United States also designated the FARC and the AUC as significant foreign narcotics traffickers under the Kingpin Act.

Colombia suffered many large and small domestic terrorist attacks throughout 2003. Car bombs, kidnapping, political murders, the indiscriminant use of landmines, and economic sabotage were common occurrences. Some of the more noteworthy examples included the FARC’s car bombing in February of Bogota’s El Nogal Club killing 34 and wounding more than 160; the FARC hostage taking of three US contractors and killing of another American and a Colombian when their plane crashed near Florencia, Caqueta Department (the three Americans remain hostages) in February; a “house bomb” in February in Neiva that killed 16 and wounded more than 40; an ELN kidnapping in September of eight foreign tourists visiting archaeological ruins (one escaped, two were released in November, and five were freed in December); a grenade attack in November by the FARC that wounded Americans in Bogota’s restaurant district; and attacks in November and December utilizing antitank rockets. Both FARC and the ELN continued attacks against the country’s infrastructure and oil pipelines in 2003, albeit at reduced levels. Many more attacks were thwarted nationwide through excellent intelligence and security work.

In 2003, President Uribe increased military pressure on illegal armed groups and implemented an ambitious national security strategy including securing passage of antiterrorism legislation, promoting the desertion and reintegration of former illegal armed militants, and engaging the AUC in demobilization negotiations. President Uribe submitted to Congress two important draft laws with significant public security implications—the Antiterrorism Bill and a Conditional Parole Bill. The Anti-Terrorism Bill was approved by Congress on 10 December and allows the Government to conduct wiretaps, search residences, and detain suspects more easily. The conditional parole legislation is connected to the broader peace process and would provide the Government the means to waive prison sentences in exchange for demobilization. Through legislation and with possible US assistance, the Government of Colombia expected the voluntary surrender of more than 4,000 illegal armed militants in 2003 (an increase of 84 percent over 2002) and the demobilization in December of some 1,000 paramilitaries with more planned for 2004.

Overall, Colombia’s ambitious security strategy produced substantial achievements in 2003. Murders decreased by 16 percent, assassinations of trade unionists were down 68 percent, and kidnappings were 30 percent lower in 2003.The military completed the early phases of its national defense plan with significant successes, including the killing of at least five midlevel FARC commanders in Cundinamarca Department near Bogota. In January 2004, the most senior FARC official ever to be captured was detained by Ecuadorian National Police in Quito and deported to Colombia. Another major accomplishment was the restoration of a Government presence in every one of the country’s 1,098 municipalities (county seats) by the end of 2003.

Colombia cooperated fully in blocking terrorist assets. A Colombian Financial Information and Analysis Unit, created in 2001 following the model of the US Financial Crimes Enforcement Unit (FinCEN), collaborated closely with the US Treasury’s Office of Foreign Assets Control. US Anti-Terrorist Assistance in August inaugurated a school for Colombian military and police who specialize in anti-kidnapping. Kidnappings are sources of revenue for the FARC and the ELN and a means to influence the political process. The Government also took steps at self-improvement by expanding an antiterrorism unit in the Prosecutor General’s Office. Lessons learned in the counternarcotics fight have led to better prosecutions of those who attack the nation’s infrastructure, particularly in oil-producing areas.

Colombia made significant strides in combating narcotrafficking, a primary source of revenue for terrorist organizations. The UN Office on Drugs and Crime estimated that coca cultivation could be reduced by aerial eradication as much as 50 percent in 2003. Eradication programs targeting coca and opium poppies continued throughout the year. In August, the United States resumed the air Bridge Denial Program that assists Colombia in intercepting aircraft trafficking in narcotics and illegal weapons.

Colombia was particularly cooperative in cases and investigations involving Americans, such as the hostage taking of Defense Department civilian contractors in February and the grenade attack in Bogota in December.The US-Colombia extradition relationship continues to be one of the most successful in the world; Colombia extradited 67 persons to the United States in 2003. In May 2003, Colombia extradited Nelson Vargas Rueda, the first FARC member to be extradited to the United States. Vargas is accused of the kidnapping and murder of three American NGO activists working with Colombian indigenous groups in northern Colombia in 1999. Colombia also extradited Gerardo Herrera Iles, accused of kidnapping foreign and US oil workers, to the United States in 2003.

Colombia has signed eight of the international conventions and protocols relating to terrorism and is a party to six.

Ecuador

The Government of Ecuador supports the war on terrorism in all international and bilateral forums. Quito signed the Inter-American Convention Against Terrorism but has not yet ratified it. President Gutierrez, during a visit in February to the United States, expressed his intent to make Ecuador a solid ally in the war on terrorism. Nevertheless, resource constraints, a lack of training, and sometimes-corrupt governmental organizations impede progress in the battle against both international and regional terrorism. Ecuador’s judicial system, which is susceptible to outside pressure and corruption, adjudicated no terrorist cases in 2003.

At the working level, the National Police (ENP) supported US counterterrorrism initiatives throughout 2003 and into 2004. In January 2004, the most senior FARC official ever to be captured was detained by Ecuadorian National Police in Quito and deported to Colombia in a concrete example of Ecuador’s will to defeat the narcoterrorist threat in the region. In March, the ENP arrested an Ecuadorian citizen who detonated two bombs at a Government office in Guayaquil. A string of weapons seizures in Ecuador demonstrated the arms trade in Ecuador supporting Colombian narcoterrorists. In August 2003, the police broke up an arms smuggling operation supplying Colombian narcoterrorists. In September, an Army captain was arrested and accused of providing operational information to the Colombian FARC. In addition, a DEA-trained counter-drug policeman apprehended an Italian citizen trying to board Continental Airlines in Quito with explosives and a firearm in November.

Although no terrorist-related incidents were launched from Ecuador, its porous borders, endemic corruption, and well-established illegal migrant networks make it an attractive entry point for would-be terrorists. Ecuador has been historically lax in securing the northern border from Colombian illegal armed groups. Only in recent years has the Government recognized the threat from Colombia and undertaken serious efforts to impose control along the border. Ecuador’s security forces disrupted several Colombian narcoterrorist encampments in Ecuador from late 2002 through October 2003. Although the FARC still operates in the area, it realizes now that Ecuador is less hospitable than before.

The Government of Ecuador banking superintendency acts swiftly to include suspect individuals and groups into bank lookout databases upon receipt of terrorism finance information. In 2003, Ecuador ordered two pharmacies closed because of information from the United States that proved ties to Colombian drug-trafficking organizations. Unfortunately, due to ineffective enforcement, the companies were still operating at the end of the year.

Ecuador is party to 10 of the 12 international conventions and protocols relating to terrorism.

Peru

Peru continued to take many actions against both international and domestic terrorism in 2003. President Toledo made combating terrorism one of the keynotes in his annual state-of-the-nation speech in July, pledging increased funding for security forces and social development projects in areas where the domestic Shining Path (Sendero Luminoso-SL) operates. The Foreign and Defense Ministers consistently condemned terrorism and implemented counterterrorism actions. On 15 August, the Government of Peru signed the Asuncion Declaration in which several South American nations committed themselves to support the Government of Colombia in its ongoing struggle against terrorism and drug trafficking. Peru ratified the Inter-American Convention againstTerrorism in June 2003.

A director for the Financial Intelligence Unit (FIU), established in 2002, was named in April 2003. He expanded the staff and began receiving reports of suspicious activity from banks.The US Embassy worked closely with the FIU to provide a technical advisor and funding for the acquisition of hardware and software.

The Peruvian Congress created a national security system designed to improve intergovernmental cooperation and strengthen prosecutors. Meanwhile, the National Police (PNP) Directorate of Counterterrorism continued its strong cooperation with the Embassy in counterterrorism activities. The United States did not make any extradition requests to Peru for terrorists in 2003.

Peru has aggressively prosecuted terrorist suspects. In January, the Constitutional Tribunal overturned numerous provisions in Fujimori-era decree laws on terrorism, in conformance with decisions of the Inter-American Court of Human Rights. Military court convictions in approximately 2,000 cases were vacated and reviewed for retrial. President Toledo issued decree legislation revising Peru’s antiterrorism legislation in line with the Constitutional Tribunal decision and established the procedures for reviewing and retrying terrorism cases. Some were dropped because sentences are nearing completion, and some 750 cases are sufficiently strong to be retried beginning in 2004.

In September, four Chilean defendants were retried and convicted of membership in the Tupac Amaru Revolutionary Movement and participation in an attack on the Peru-North American Cultural Institute and a kidnapping-murder in 1993.

Eight members of SL remain in custody awaiting trial. They were arrested for complicity in the bombing in March 2002 across the street from the US Embassy that killed 10 people. Peru successfully sought the extradition from Spain of Adolfo Hector Olaechea, a suspected SL official, in 2003. He was released from custody but ordered to remain in Peru while the public prosecutor prepares the case for trial.

The most serious SL event in 2003 was the kidnapping of 68 workers and three police guards in June at a Camisea gas pipeline project in Toccate, Ayacucho Department. The SL abandoned the hostages two days after the kidnapping and a rapid military response; a ransom may or may not have been paid to the SL. The PNP also broke up many SL camps and captured many members and leaders in 2003. More than 200 indigenous people held in virtual slavery by the SL were released in the process.Terrorist incidents fell to 96 by late October, projecting an annual rate of 115 or a 15-percent drop from the 134 kidnappings and armed attacks in 2002. Six military and three self-defense personnel were killed in 2003, while six SL militants were killed and 209 captured.

Peru is a party to all 12 of the conventions and protocols relating to terrorism.

Triborder Area (Argentina, Brazil, and Paraguay)

The Triborder area (TBA)—where Argentina, Brazil, and Paraguay converge—has long been characterized as a regional hub for Hizballah and HAMAS fundraising activities, but it is also used for arms and drug trafficking, contraband smuggling, document and currency fraud, money laundering, and the manufacture and movement of pirated goods. Although there continued to be reports in 2003 of an al-Qaida presence in the TBA, these reports remained uncorroborated by intelligence and law-enforcement officials.

In December, a high-level interagency delegation from the United States attended a special meeting in Asuncion, Paraguay, of theTripartite Commission of theTriple Frontier, a security mechanism established by the three TBA countries in 1998. This “Three Plus One” meeting (the three TBA countries plus the United States) serves as a continuing forum for counterterrorism cooperation and prevention among all four countries. At the December talks, the four countries exchanged current views on terrorism prevention in the region and on measures to enhance cooperation, including proposals to establish a joint regional intelligence center, convene a conference of “Three Plus One” partner financial intelligence units in the first half of 2004, deepen border security cooperation, and increase dialogue among national prosecutors responsible for counterterrorism cases. The parties concluded that available information did not substantiate reports of operational activities by terrorists in the TBA.However, international terrorist financing and money laundering in the area remained an area of primary concern. A concerted effort will be made to develop legitimate economic activity in the TBA.

Argentina continued to express strong support for the global war on terrorism and worked closely with the United Nations, the OAS, the Southern Common Market (MERCOSUR—Brazil, Uruguay, Paraguay, and associate members Bolivia and Chile), and the United States to ensure full implementation of existing agreements. The Argentine Government, executive branch officials, and the Central Bank were extremely cooperative and responded quickly and effectively to ensure the assets of terrorist groups identified by the United States or UN would be blocked if detected in Argentine financial institutions. Though no leads were found in 2003, the Government of Argentina continually expressed its willingness to freeze assets in compliance with international agreements.

Diplomatically, Argentina cooperated fully in 2003 with all significant international counterterrorism efforts in the UN, the OAS, and the “Three Plus One” Counterterrorism Dialogue to strengthen security and search for terrorist support networks, especially in the Triborder area. Argentina worked within existing regional and international forums to elicit strong condemnations of terrorism and support to organizations combating terror. Argentina maintains an active role in the OAS CICTE, established in response to an Argentine initiative in the 1990s. Multilateral meetings—including high-level US officials with counterterrorism responsibilities—were held in Brasilia in May 2003 and Asuncion in December to focus on the Triborder.

On 15 August, the Government of Argentina signed the Asuncion Declaration in which several South American nations committed themselves to support the Government of Colombia in its ongoing struggle against terrorism and drug trafficking.

Although there were no acts of international terrorism in Argentina in 2003, investigations into the bombing of the Israeli Embassy in 1992, in which 29 persons were killed, and the bombing in 1994 of the Argentina-Israeli Community Center (AMIA), in which 86 persons were killed, continued. The trials of 20 suspects in the AMIA bombing—of whom 15 are former police officers—continued throughout 2003 and appeared to be nearing a close. The judge in the AMIA case indicted 12 Iranian officials, including diplomats stationed in Buenos Aires in 1994 and one Lebanese official believed to head Hizballah’s terrorist wing. Although no countries requested terror-related extraditions from Argentina, Argentina requested the extradition of the former Iranian ambassador to Argentina from the United Kingdom, indicted in the AMIA case.

The request was denied due to a lack of evidence presented by Argentina.

Proposed antiterrorism legislation has long provoked an active debate over the balance between civil rights and the need to address potential terrorism. As a result, there has been little progress toward the passage of new comprehensive antiterrorism legislation. Nevertheless, the Government strongly and consistently deplored terrorist acts when they occurred. In 2003, both ex-President Duhalde and his successor, Nestor Kirchner, publicly condemned terrorism and reiterated Argentina’s support for the war on terrorism. Despite the lack of new legislation, Argentina continued to improve intragovernmental coordination on counterterrorism to enhance the framework within which better international cooperation can occur.

Argentina has signed all of the 12 conventions and protocols relating to terrorism and is a party to 10.

Brazil has extended practical, effective support to US counterterrorism actions.The Government of Brazil has been cooperative in checking records provided by US intelligence, law enforcement, and financial agencies regarding hundreds of terrorist suspects. For example, Brazilian authorities actively followed up on press reports in March 2003 that al-Qaida operative Khalid Sheikh Mohammed visited the Triborder area in 1995.

Although the Government of Brazil is politically committed to the fight against terrorism, lack of resources and training sometimes hamper its response. The United States continues to work with Brazil in several bilateral, multilateral, and international forums to identify groups and individuals suspected of possible ties to terrorist activity. Brazil hosted a working group meeting under the 3+1 Counterterrorism Dialogue in May, which focused on technical cooperation related to the fight against terrorism financing. Technical specialists from the United States are fully engaged with elements of the Brazilian Government responsible for combating terrorism, including the Federal Police. Brazil is willing and increasingly capable of monitoring domestic financial operations and has effectively utilized its Financial Activities Oversight Council (COAF). Bilateral assistance and training of the COAF began in 1998 and emphasized upgrades to its database in 2003.

Since taking office in January 2003, President Lula da Silva has vigorously condemned terrorism and called the attack on the UN building in Baghdad “the insanity of perpetrators of terrorism.” In January, Brazil backed the CICTE with a financial contribution. In July 2003, Brazil approved legislation criminalizing the financing of terrorist activities. On 15 August, the Government of Brazil signed the Asuncion Declaration in which several South American nations committed themselves to support Colombia in its ongoing struggle against terrorism and drug trafficking.

In addition, the Brazilian Chamber of Deputies passed a bill on cybercrime—to prevent terrorist hack attacks—that awaits Senate consideration.

There are no significant impediments to the prosecution or extradition of suspected terrorists by Brazil.The Brazilian extradition law prohibits the extradition of Brazilian citizens but allows very measured and careful consideration for the extradition of naturalized citizens (for previous crimes and drug trafficking only) and foreigners (not for ideological or political crimes). In November 2003, Brazil extradited Assad Ahmad Barakat to Paraguay. Barakat was arrested in June 2002 by Brazilian authorities in Foz do Iguacu, Parana, in the TBA acting on a Paraguayan extradition request related to criminal charges. Barakat is a naturalized Paraguayan of Lebanese origin who lived in theTBA for approximately seven years and was known to have been involved in political and financial activities supporting Hizballah organizations.

In February 2003, Brazil declined a request from Colombia to designate the FARC as a terrorist organization. Brazil stated it did not maintain a formal list of terrorist groups but condemns specific terrorist actions taken by the FARC and other groups. Brazilian security forces continued to investigate possible links between domestic criminal groups—especially drug traffickers and those with no discernible political agenda—that sometimes employed terrorist tactics. In 2003, organized crime groups at times shut down Rio de Janeiro tourist and business areas and systematically attacked police stations in Sao Paulo to weaken Government resolve to combat them. At the end of 2003, Brazil had increased it readiness to confront domestic groups and reinforce against FARC incursions in northwestern Brazil. The Brazilian Army augmented its Special Forces capabilities—including counterterrorism—and began compiling data on global terrorist threats to enhance its ability to respond.

Brazil signed all of the 12 UN conventions on terrorism and is a party to nine.

Paraguay has aided the global Coalition against terrorism by ratifying a number of international treaties and conventions and actively supporting counterterrorism at the UN and the OAS. On 15 August, Paraguay signed the Asuncion Declaration in which several South American nations committed themselves to support the Government of Colombia in its ongoing struggle against terrorism and drug trafficking.

On 30 October, Congress ratified the CICTE. Paraguay is also strengthening its domestic legal framework to deal more effectively with terrorism and ancillary support activities.

Paraguay hosted the successful third meeting of the 3+1 Counterterrorism Dialogue in December 2003. Paraguay has determined that there is a domestic problem with fundraising that might support terrorist causes. It looks to assistance from other governments—including the United States—to help it fight the problem.The primary impediment to the prosecution of suspected terrorists is the absence of an antiterrorist law. Without such a law, the Government is forced to prosecute suspected terrorist fundraisers for tax evasion or illegal financial activities. Paraguay is drafting new legislation to strengthen its anti-money laundering regime, as well as a specific antiterrorism bill. Both bills are fully backed by the Duarte Administration and expected to go before Congress in 2004.

Despite the lack of specific antiterrorist statutes, Paraguay actively prosecuted known terrorist fundraisers. Two prominent Hizballah fundraisers, Sobhi Fayad and Ali Nizar Dahroug, were sentenced to lengthy prison terms in November 2002 and August 2003, respectively. Paraguay’s antiterrorist police continued to provide excellent support for the arrest and prosecution of terrorists. A major accomplishment in 2003 was the successful extradition request for Hizballah fundraiser Assad Ahmad Barakat from Brazil on charges of tax evasion. Additional charges of bank fraud are being considered but will require Brazil’s acquiescence under the terms for extradition.

Paraguay is a party to six of the international conventions and protocols relating to terrorism and is a signatory to an additional five.

Uruguay

The Government of Uruguay is supportive of international terrorist measures undertaken in a variety of international forums and cooperates fully with the United States. Uruguayan officials routinely condemned terrorism and specific terrorist acts. Although Uruguay is supportive of the global Coalition against terrorism, it lacks the resources to play a significant role. However, it does provide troops to international peacekeeping forces in Africa and the Middle East.

Uruguay is active in the OAS CICTE and has seconded personnel to its Executive Secretariat. Uruguay hosted the annual CICTE meeting in Montevideo in January 2004 and assumed the CICTE chairmanship through 2004. Uruguay is a member of a MERCOSUR permanent working group on terrorism along with Argentina, Brazil, Chile, Paraguay, and Bolivia. The group facilitates cooperation and information sharing among countries fighting terrorism and places special emphasis on the Triborder area and the Uruguay-Brazil border. Uruguay is, likewise, active in counterterrorism groups in the Rio Group and in the OAS.

On 15 August, the Government of Uruguay signed the Asuncion Declaration in which several South American nations committed themselves to support the Government of Colombia in its ongoing struggle against terrorism and drug trafficking.

In 2003, Uruguay ratified the International Conventions for Suppression of the Financing of Terrorism and the Physical Protection of Nuclear Material. The Government of Uruguay faces some challenges in fully implementing UN Security Council Resolutions 1373 and 1456, especially in curtailing terrorist financing activities. This might have more to do with the Government’s uncertainty about its ability to effectively track money laundering and terrorist financing—in spite of the creation of a unit for financial analysis in the central bank.

Uruguayan law enforcement authorities assisted with international investigations of the movement and activities of suspected terrorists in 2003, but Uruguay was not directly involved in terrorist events. At present, there are no known terrorist operatives in Uruguay, and Uruguayan banking and law enforcement officials have discovered no terrorist assets in Uruguayan financial institutions. Banking and law enforcement agencies cooperated with US counterterrorism efforts by pledging to search for bank accounts, individuals, and groups with links to terrorism. Uruguay is assisting in the investigation of potential terrorist support emanating from the Triborder area and along Uruguay’s northern frontier with Brazil.

Uruguay has no significant impediments to the prosecution or extradition of suspected terrorists.The judicial system is independent of external influences, but, as elsewhere, the judges’ personal political leanings can influence the outcome of some cases.

In July 2003, Uruguay extradited Al Said Hassan Mokhles to Egypt. Egypt requested the extradition of the member of al-Gama’a al-Islamiyya, possible associate of al-Qaida, in 2002. Egyptian authorities tied Mokhles to a terrorist attack in Luxor, Egypt, that killed 58 foreign tourists in 1997. He was arrested in Uruguay on charges of document fraud in 1999 after attempting to enter the country with a false passport. Uruguayan authorities released him to Egypt under the conditions that he not be subjected to the death penalty, permanent imprisonment, or charged for document fraud (for which he already served four years).

Uruguay has signed and ratified all 12 UN terrorism conventions and protocols.

Venezuela

Venezuelan cooperation in the international campaign against terrorism was inconsistent in 2003. Public recriminations against US counterterrorism policies by President Chavez and his close supporters continued to overshadow and detract from the limited cooperation that exists between specialists and technicians of the two nations.

President Chavez’s stated ideological affinity with the Revolutionary Armed Forces of Colombia (FARC) and the Colombian National Liberation Army (ELN) limits Venezuelan cooperation with Colombia in combating terrorism. Venezuela is unwilling or unable to systematically police the Venezuela-Colombia 1,400-mile border. The FARC and the ELN often use the area for cross-border incursions and regard Venezuelan territory near the border as a safehaven. In addition, weapons and ammunition—some from officialVenezuelan stocks and facilities—continued flowing fromVenezuelan suppliers into the hands of Colombian terrorist organizations. It is unclear to what extent the Government of Venezuela approves of or condones material support to Colombian terrorists and at what level. Efforts byVenezuelan security forces to control their sides of the border and to interdict arms flows to these groups are ineffective.

Current Venezuelan law does not specifically mention crimes of terrorism, although the UN Convention on Terrorist Bombings of 1997 and the UN Convention on Terrorism Financing of 1999 became law in Venezuela on 8 July 2003. An organized crime bill pending in the National Assembly would define terrorist activities, establish punishments, and facilitate the prosecution and asset forfeiture of terrorism financiers. Venezuela signed the OAS Inter-American Convention Against Terrorism in June 2002 and ratified it in January 2004.

Terrorist tactics were employed throughout 2003 by unidentified domestic groups attempting to influence the tenuous political situation, particularly in Caracas. A series of small bombs and threats throughout the year were variously blamed on supporters of President Chavez or the Government’s political opponents.

Venezuela extradited one member of the terrorist organization Basque Fatherland and Liberty to Spain and arrested another. Unconfirmed press accounts continued to allege the presence of radical Islamic operatives in Venezuela—especially on Margarita Island. In February 2003, a Venezuelan national managed to fly from Venezuela to London with a hand grenade in his checked luggage, but his intent remains unclear.

Venezuela is a party to six of the 12 international conventions and protocols relating to terrorism.

North America (Canada and Mexico)

The Government of Canada remained steadfast in its condemnation of international and domestic terrorism and has been a helpful and strong supporter of the United States in the fight against international terror.Though there have been differences, overall antiterrorism cooperation with Canada remains excellent and serves as a model for bilateral cooperation. Day-to-day cooperation between US and Canadian law-enforcement agencies is close and continuous. Canadian Armed Forces participated in Operation Enduring Freedom in 2001, and Canada currently has some 1,900 soldiers in Afghanistan where they will lead the International Security Assistance Force in 2004. Canada has pledged $230 million to reconstruction efforts; participated in a Justice Department- led international assessment of Iraq’s police, prisons, and court sectors; and is currently involved in training the Iraqi police force.

Canada’s 2001 Anti-Terrorism Act created measures to identify, deter, disable, prosecute, convict, and punish terrorist groups. It also provides investigative tools for Canadian law enforcement agencies while providing substantial safeguards to privacy and due process. As of November 2003, there were 34 organizations listed under the statute as entities engaging in terrorist activities. Although they are subject to prosecution under the Criminal Code of Canada, the law is untested since no prosecutions have taken place. Canada cooperates closely with the United States on investigations, and there is a heavy volume of extradition requests between the two countries. Canadian privacy laws, limited resources, and criminal procedures more favorable to the defendant than in the United States sometimes inhibit a more full and timely exchange of information and exclude some potential supporters of terrorism.

Canada was the first country to ratify the Inter-American Convention Against Terrorism in December 2002. Canada implements terrorist finance listings in compliance with UN requirements and coordinates closely with the United States on plans to freeze assets. Efforts to counter terrorist financing include implementing UNSCR 1373, promoting the Special Recommendations on Terrorist Financing of the Financial Action Task Force, and actively participating in the G-7, G-8, and G-20.

Canada and the United States take part in a number of joint counterterrorism forums. In October 2003, they participated in a new round of talks under the auspices of the Bilateral Consultative Group on Counterterrorism Cooperation (BCG, established in 1988).The BCG is tasked to review international terrorist trends and to plan ways to intensify joint counterterrorism efforts. Canada will host the next BCG meetings in 2004. In May 2003, Canada and the United States participated in the second Top Officials simulation to test local, state/province, and federal disaster responses to a terrorist attack against civilian populations.The US Attorney General and Canadian Solicitor General coordinated policy at the US-Canada Cross-Border Crime Forum.The forum met in West Virginia in 2003 and established a counterterrorism subgroup to enhance cooperation in law enforcement and prosecutions. Future efforts include continued implementation of provisions of the Smart Border Accord and the further integration of border enforcement teams that are operating in 12 regions.

Canada has signed and ratified all 12 UN conventions and protocols relating to terrorism, including the International Convention for the Suppression of the Financing of Terrorism, under which Canada has listed and frozen the assets of more than 420 entities.

The Government of Mexico remained a strong international and bilateral partner in counterterrorism efforts throughout 2003. Mexico accepted a new methodology of evaluating and regulating money laundering and terrorism financing adopted by the IMF, the World Bank, and the FATF.

Among the many bilateral initiatives undertaken, Mexico cooperated fully with the United States in continuing to implement the US-Mexico Smart Border Accord—a 22-point border action plan signed in 2002 that aims to improve border infrastructure, expedite the secure flow of people, and facilitate the secure flow of goods across the US-Mexico border. Exchanges such as the Senior Law Enforcement Plenary, the Binational Commission, and the Mexico-US Committee on Transborder Critical Infrastructure Protection helped improve cooperation, trust, and confidence. Routine training, education, and technical assistance at various levels took place throughout 2003.

Mexico’s Federal Investigative Agency arrested six Spanish citizens and three Mexicans at locations throughout Mexico on 18 July and alleged they had ties to the Basque Fatherland and Liberty (ETA). In public statements, Mexican officials said the suspects were laundering money to fund ETA terrorism and forging documents to support ETA members.

A continuing issue of strategic concern to US-Mexico counterterrorism efforts is the existence and continued exploitation of longstanding smuggling channels traversing the US-Mexico border.These routes have existed for many years to facilitate movement across the border while avoiding US and Mexican authorities. Despite active and prolonged cooperation by the Mexican Government to address these smuggling routes, many smugglers have avoided prosecution.

Mexico has ratified all 12 international conventions and protocols against terrorism.