12 February 2000


US Department of State
International Information Programs

Washington File
_________________________________

10 February 2000

CounterTerrorism Chief Reviews Post-Millennium Terrorism

(Sheehan says multilateral, tightly coordinated campaign needed)
(3650)

"Terrorists can only exist if they have space in which they can
recruit, train, plan, move and work," says Ambassador Michael A.
Sheehan, the State Department's Coordinator for CounterTerrorism.

"They find this space in countries or areas where a state allows them
to operate or where no legitimate government has control," the
Ambassador said February 10 in remarks at the Brookings Institution.

"Iran remains the most active state sponsor of terrorism," Sheehan
said, noting that the Iranian government still has not been
cooperative in the investigation of the Khobar bombing in Saudi Arabia
in 1996.

"Through sanctions and diplomatic pressure, and with the cooperation
of our friends, we have made clear to the Iranian government our
strong objection to its support for terrorism," he said.

"Diplomacy is our key tool in forging critical cooperation with other
countries" to fight terrorism, Sheehan said. Terrorists may in the
future turn to weapons of mass destruction or cyber terrorism to make
their cause known around the globe, he added.

Sheehan said that even though there have been ups and downs over the
past 20 years, "we have had significant success against terrorism;
particularly, against state-sponsored terrorism."

Referring to Usama bin Laden and his terrorist cell and their alleged
bombing of the U.S. embassies in Kenya and Tanzania, Sheehan
reiterated his request to the Taliban government in Afghanistan to
turn bin Laden over for trial.

"The presence of these groups is increasingly threatening to a number
of states, both in the region and beyond -- which helps explain the
rapid and unanimous passing of United Nations Security Council
resolution 1267 on October 15 last year, imposing international
sanctions on the Taliban until they turn over Usama bin Laden to a
country where he can be brought to justice," Sheehan said.

"The presence of these terrorist groups also contributes to the
inability of the Taliban to gain the recognition they seek," he said.
"U.S. policy -- U.S. sanctions -- are not anti-Afghan. We still
support the aspirations of the Afghan people to live in peace and
freedom."

Sheehan reminded his audience that the United States is the biggest
donor of humanitarian aid to Afghanistan and that the sanctions are
designed to limit the suffering of the people.

"Iran is a different problem," Sheehan said, noting that Iran
continues to support such terrorist groups as Hizballah, HAMAS,
Palestinian Islamic Jihad, and Ahmed Jabril's PFLP-GC for the purpose
of attacking the Middle East Peace Process.

"We must 'drain the swamp' -- or limit the area that terrorists have
to move in -- Sheehan said, calling for further international
cooperation to fight terrorism.

Following is the text of Sheehan's remarks:


(begin text)


Post-Millennium Terrorism Review
Speech by Ambassador Michael A. Sheehan,
Coordinator for Counterterrorism
Brookings Institution
February 10, 2000

Introduction

I want to thank Ron Nessen and Mike Armacost for helping to arrange
this event. I'm also looking forward to participating in the panel
following this, with Richard Haass. Thank you for this opportunity to
talk about the changing threats and challenges we face from terrorism,
a subject many of you have followed closely. Today I would like to
review the lessons from the recent millennial threat period, assess
the current terrorism threat, and highlight American counterterrorism
priorities. Then I want to leave you with a description of the road
ahead in responding to the threat.

Review of Millennium Period.

Towards the end of 1999, intelligence and law enforcement officials
were on alert for terrorist activity surrounding the millennium.

Three events dramatically changed our alert posture:

-- First, in mid-December the Jordanian police arrested members of a
cell planning attacks against western tourists. This cell was linked
to Usama bin Laden, whose al-Qaida organization was responsible for
the 1998 U.S. Embassy bombings in East Africa.

-- Second, on December 14 alert Customs agents arrested an Algerian
national smuggling almost 50 pounds of explosive materials and
detonating devices into the United States. The other Algerians
subsequently arrested in connection with this plot apparently were
"Afghan alumni," trained with the mujahedin in Afghanistan and also
linked to Usama bin Laden.

-- Third, from December 24-31 hijackers linked to the Harkat
ul-Mujahideen (HUM) of Pakistan held over 150 passengers hostage and
killed one innocent honeymooner on Indian Airlines flight 814.

What did these events mean?

Although terrorists still target military installations (such as the
1996 Khobar Tower attack in Saudi Arabia) and diplomatic missions (as
in Nairobi and Dar Es Salaam) -- they have expanded their target list
to include attacks on "softer targets" such as hotels and tourist
sites and may be planning to bring those attacks into the continental
United States-to an extent that quite frankly we were not
anticipating. Fortunately, due to the outstanding work of intelligence
and law enforcement officials -- here and abroad -- we were able to
thwart several potentially deadly events.

Impact of Terrorism

Now I want to preface my assessment of the current threat with some
brief remarks on the importance of terrorism. The obvious result of
terrorism is the tragic loss of human life and property. But there are
other detrimental effects.

As terrorist expert Brian Jenkins has recently written:

"Terrorist acts cause crisis, provoke outrage, fray community ties and
undermine faith in our democratic institutions. Only six people died
in the World Trade Center bombing. But such an event, if repeated
annually, would put intolerable strains on our society."

Internationally, the threat of terrorism has even broader implications
than at home where our prosperity and strong democratic institutions
are more resilient.
International terrorism can:

-- Destroy or delay peace processes.

-- Provoke, prolong or entrench conflicts.

-- And otherwise accelerate the cycle of violence in areas of the
world important to our national interest.

Examples of these phenomena were apparent in 1999:

-- The five explosions in Moscow earlier this year claimed the lives
of nearly 300 people and contributed to the decision-making that has
driven the relentless attack by Russian troops in Chechnya.

-- The hijacking of Indian Airlines flight 814 exacerbated an already
tense situation and has slowed efforts toward reconciliation between
India and Pakistan.

-- In the Middle East, rejectionist groups, such as Hizballah and
Hamas, threaten the peace process with their terrorist attacks --
which can increase tensions and reduce leaders' ability to come to the
peace table.

In effect, terrorism, in areas wracked by conflict, prevents leaders
from advancing delicate peace processes -- and terrorists know this
all too well. It is a credit to the British and Irish governments that
they have been able to keep the peace process on track, especially
after a car bomb killed 29 and wounded more than 330 others in the
border town of Omagh in August 1998.

Terrorism can also have a disproportionate impact on national
economies.

In 1996, a small group of Al-Gamat'Al-Islamayya operatives gunned down
58 international tourists and four Egyptians in Luxor Egypt-and
Egypt's tourist economy is just how fully recovering. The terrorists
achieved their goal, not of killing tourists, but of crippling Egypt's
tourism industry. Egyptian efforts to combat terrorism seem to have
been effective, and the Al-Gama' at Al-Islamiyya has declared a
unilateral truce with the Egyptian government. Nevertheless,
unofficial statistics estimate that Egypt lost over one billion
dollars of tourism revenues after the Luxor assault.

And it is impossible to measure the impact on investment, not only for
foreign investment, but national as well.

In 1986 alone -- the worst year on record for international terrorist
attacks --Pan Am attributed a loss of $300 million to terrorism; 24
percent fewer American tourists traveled to Europe; and Greece lost
half a billion dollars in tourism revenue, after a spate of terrorist
attacks including the explosion on board TWA flight 840 as it
approached Athens and the hijacking of an Egypt Air flight en route
from Athens to Cairo. I hope and trust that the two recent hijackings
in South Asia will not bring in a new era of hijacking -- when
international air travel has expanded exponentially since 1980.

Let me also add that the U.S. government has another inherent
motivation for delegitimizing the terrorist option for international
actors. As the world's strongest economic and military power, it would
behoove many groups to find a way to attack us when we are
soft-bypassing direct military confrontation with our armed forces. We
must ensure terror does not become a viable instrument for those who
are frustrated with American power, ideas, or policies.

The Changing Face of Terrorism

With that rather somber introduction, let me emphasize that we have
had significant success against terrorism in the past 20 years --
particularly against state sponsored terrorism. Unfortunately, a new
breed of terrorist has emerged in recent years -- partly in response
to our success against state sponsors and partly as a product of
different local, regional and international Circumstances.

Today's terrorist threat comes primarily from non-state actors with
few ties to governments, such as the al-Qaida network, Aum Shinrikyo
in Japan, and the FARC in Colombia. Terrorists are acting more on
their own and are resorting to car bombs, suicide bombings, and
attacking civilian buildings and diplomatic posts. They have their own
funding networks -- through narcotrafficing, private businesses,
independent wealth, charities, and local financial support. They are
individually recruiting new members. In many states where the
government is weak in providing basic public services, these groups
create parallel public institutions, such as schools, public health
services, and social networks.

They are also exploiting volatile areas, such as Chechnya,
Afghanistan, and Colombia where local conflicts help terrorist
recruitment. Their infusion of resources and training in conflict-ripe
areas makes for a very deadly mix.
Especially since the end of the Cold War, a number of terrorist groups
have portrayed their cause in religious and cultural terms. This is
often a transparent tactic designed to conceal political goals,
generate popular support, and silence potential opposition. It feeds
upon the resentments and suffering of people who feel forgotten or
marginalized in today's rapidly globalizing society.

In general, these emerging non-state actors exhibit less constraint
than state actors and other groups did in past decades. Some actively
are seeking to gain weapons of mass destruction (WMD) to increase the
lethality as well as the psychological impact of their attacks.
Timothy McVeigh, the Oklahoma City bomber, was quoted as saying he
wanted a "body count" in his bombing -- as it was necessary to get the
level of attention he wanted for his twisted mind of conspiracy
theories and hate. Ramsi Yousef, the leader of the 1993 World Trade
Center bombing in New York City, wanted to knock down the one tower
into the other and kill every one in both high rise office buildings.

Now I've given you a snapshot of today's somewhat more freelancing
terrorists, driven by religious and cultural ideology to carry out
increasingly lethal attacks. Next, to complete the threat picture, I
will lay out the regional priorities as we combat the threat of
terrorism around the globe.

American Priorities: Afghanistan and Iran

Afghanistan

The primary area of concern for terrorism today is South West Asia;
specifically -- and for different reasons -- Afghanistan and Iran.

First, Afghanistan. Afghanistan provides sanctuary for the most active
terrorists that directly threaten American interests today -- and most
of them are in an area controlled by the Taliban.

The Taliban has expressed to me on several occasions that they would
like to have good relations with the United States-and I have no
reason not to believe they mean it. They remember fondly the support
we gave the Afghan resistance during the 1980s in their struggle to
eject Soviet occupation. I also believe that they do not want
individuals or organizations to plan and conduct terrorist operations
from their soil.

However, why then do we find terrorists within their midst? Although I
do not pretend to speak about the intentions of the Taliban, it is
obvious to me that most of the groups that reside in Afghanistan have
multiple motives, and their primary motive is usually support for
other resistance operations or local conflicts. This includes Usama
bin Laden-who supports the Taliban in their struggle against the
northern alliance, militants in Chechnya, and the Harkat ul-Mujahideen
(HUM) -- which wages a struggle in Kashmir. However, these
organizations are also involved in terrorist activities and have been
designated by the Department of State in a very careful and methodical
process -- the Foreign Terrorist Organization or FTO designation
process.

The presence of these groups is increasingly threatening to a number
of states, both in the region and beyond -- which helps explain the
rapid and unanimous passing of United Nations Security Council
resolution 1267 on October 15 last year, imposing international
sanctions on the Taliban until they turn over Usama bin Laden to a
country where he can be brought to justice. The presence of these
terrorist groups also contributes to the inability of the Taliban to
gain the recognition they seek.

What should the Taliban do? Again, I fully understand that the Taliban
will continue to make judgments it considers to be in its best
interest. The best I can do is outline to them what they need to do if
they hope to get out of an increasingly tight box of international
condemnation due to their providing safehaven to terrorists,
notwithstanding some of their public statements.

First, they must comply with UN Security Council Resolution 1267 and
find a way to get bin Laden to justice to face charges for his
terrorist crimes. They have spoken to me about several initiatives on
how to move forward on this issue -- and I encourage them to proceed.
If they accomplish this, those sanctions will be removed. We will not
move the goal posts. However, it is also important that the Taliban
make very clear to all groups within their territory that support for
terrorist operations or the conduct of terrorist operations is
unacceptable, and they need to expel all those who are engaged in
these type activities.

U.S. policy -- and UN sanctions -- are not anti-Afghan. We still very
much support the aspirations of the Afghan people to live in peace and
freedom. In fact we are the biggest donor of humanitarian aid to
Afghanistan, and the sanctions are designed to limit the suffering of
the people. The best way for the Taliban regime to help themselves in
this regard is to comply with the resolution.

Iran

Next I will turn to Iran, a larger, richer, and more important country
bordering Afghanistan to the west. For us Iran poses a different
problem. We broke diplomatic relations twenty years ago, and since
then finger-pointing, blaming, and name-calling have characterized our
exchanges. Now, amid the confusing signals coming out of Tehran --
like the assassinations of dissidents, the trials of journalists, the
closing of newspapers -- there are signs of change and new openness.

While we welcome these changes, terrorism remains a serious concern.
Iran continues to support such terrorist groups as Hizballah, HAMAS,
Palestinian Islamic Jihad, and Ahmed Jabril's PFLP-GC for the purpose
of attacking the Middle East peace process. As CIA Director George
Tenet recently testified, "Iran ... remains the most active state
sponsor of terrorism." And I fully agree.

We are also concerned about possible Iranian involvement in the attack
on U.S. personnel at Khobar, Saudi Arabia in 1996. As former Assistant
Secretary Martin Indyk testified last fall, "We have information about
the involvement of some Iranian officials in the Khobar attack. We
have not reached the conclusion that the Iranian government was
involved or responsible for the attack." We have asked Iran to
cooperate in this investigation but have not received a satisfactory
response. The investigation continues.

Through sanctions and diplomatic pressure, and with the cooperation of
our friends, we have made clear to the Iranian government our strong
objection to its support for terrorism. The Secretary has explicitly
offered, without preconditions, to sit down with the Islamic Republic
and create a roadmap leading to better relations. Should Iran ever
agree to enter a dialogue with the U.S. government, you can be sure
that terrorism will top the list on the agenda.

So far the response to our offer has not been promising, and relations
with the U.S. remains the "third rail" of Iranian domestic politics.
For example, in response to Secretary Albright's offer to develop a
road map, Iranian Foreign Minister Kharrazi recited a tired list of
Iranian complaints.

In the meantime, we are repeating our willingness to talk without
preconditions, and, at the same time, have worked closely with our EU
and G-8 friends to carry a clear message: supporting terrorism and
undermining the Middle East Peace process are losing games that will
keep Iran from gaining what it desires most-membership in the
international family.

What Do We do About It?

This brings me to the final point I want to discuss: What do we do
about the new threats and challenges?

An effective campaign to counter terrorism and bring to justice those
who have perpetrated terrorism acts must be multilateral and tightly
coordinated. Diplomacy is our key tool in forging critical cooperation
with other countries and raising the political will of other states to
act against terrorists. Terrorists are cunning and will exploit any
gap they see between countries or within a country's own
counterterrorism efforts.

We must "drain the swamp" in which terrorists operate. What does this
mean? We seek to limit the room which terrorists have in which to
operate, plan, move, and work. We work to show terrorists that there
is no room -- both physically and politically -- for them to use
terrorism as their means of expression.

Terrorists can only exist if they have space in which they can
recruit, train, plan, and find refuge. They find this space in
countries or areas where a state allows them to operate or where no
legitimate government has control-lawless areas in which any criminal
can move freely. Today's swamps include Afghanistan, parts of Sudan,
the Bekaa Valley in Lebanon, and the rural jungles of Colombia.

Let me describe the strategy of "draining the swamp" by outlining a
few of our key activities:

-- We pressure state sponsors, isolating them from the international
community.

-- We criminalize terrorism through the process of designating Foreign
Terrorist Organizations (FTOs).

-- We depoliticize the message of terrorism through public statements
separating actor from action.

-- We build international consensus for zero tolerance by working with
our G-8 and EU partners.

-- We support the construction of an international legal framework to
allow states and the UN, EU, OAS, and other organizations to legally
be tough on terrorism.

-- We work bilaterally to arrest, disrupt, and expel terrorists.

-- Finally, we bolster the capacity of those countries that need it to
fight terrorism, through our international training programs which are
run by state, law enforcement, and intelligence agencies.

When we drain the swamp -- or limit the area that terrorists have to
move -- we expose the terrorists. Draining the swamp also means making
clear to governments that they will be held accountable for
controlling these areas.

This requires a coordinated international effort to pressure those
regimes, such as the Taliban in Afghanistan, which harbor terrorists,
to police these swamps, expel the terrorists, and shut down areas of
operation. In some cases, such as Colombia, it means helping those
with the will to cooperate. This also means putting pressure on other
states -- many of whom are our allies -- to cut off terrorist
trafficking of fighters, money, weapons, or equipment through these
countries.

Some countries would prefer to "let sleeping dogs lie" if a terrorist
organization does not seem to directly threaten their interests. This
idea of "blind tolerance" cannot be permitted -- even for seemingly
benign cells like those in East Africa in the years leading up to the
Embassy bombings.

Finally, draining the swamp also means promoting a shift in public
rhetoric around the world. Too often terrorism -- a criminal act -- is
put in the light of religious expression, freedom fighting, or
political statement. The international community already offers groups
legitimate means of expression, and violence and terrorism are not
among these legitimate forms of expression.
Terrorism is a crime. Plain and simple. Terrorists are criminals, just
like the murderers who sit in prisons in our countries. The fact that
they espouse a political or religious view does not change the fact
that murder is murder. We must make this point clear in the media. We
must let terrorists know that we see them like common criminals, and
intend on prosecuting them like any other criminal.

Conclusion

In conclusion, we have made progress in decreasing state sponsorship
of terrorism. As countries on the list of state sponsors of terrorism
change their behavior, we will consider them for removal from the
list. We will also scrutinize the actions of other states which could
find themselves on the list if their policies warrant.

We have made it through the New Year's celebrations unscathed, thanks
to hard work by intelligence and law enforcement. But in
counterterrorism we face new threats and new challenges ahead.

Today's weapon of choice for terrorists remains the AK-47, the car
bomb, and the rocket. But terrorists looking for a bigger impact will
increasingly turn to weapons of mass destruction and cyberterrorism.

We will need to match our intelligence collection and defensive
strategies to these new threats and challenges. But the main
instrument of counterterrorism will remain constant -- American
leadership, zero tolerance, and draining the swamp so that terrorists
have nowhere to go and nowhere to hide.

Thank you.  I look forward to taking your questions.


10 February 2000

Fact Sheet: Clinton's FY2001 Budget Includes Funding for Embassy Security

(Funds for new construction and increased security readiness) (500)

Following is a February 10 White House Fact Sheet on funding U.S.
Embassy security measures. In the text, "billion" equals 1,000
million.

(begin fact sheet)

THE WHITE HOUSE

Office of the Press Secretary

February 10, 2000

FACT SHEET

EMBASSY SECURITY FUNDING

The President's FY 2001 budget includes more than $1.1 billion to
reduce further the risk of loss of life from terrorist attacks on our
overseas diplomatic missions. This represents an increase of over $500
million in additional Federal funds to address enhanced security needs
of diplomatic and consular facilities overseas. The request also
includes $3.4 billion in advance appropriations for fiscal years 2002
through 2005 to provide a solid foundation for long-term building
needs.

The budget for embassy security represents a steadfast commitment to
the security of our employees overseas, including full funding of
security readiness measures, substantial increases for security
improvements to existing facilities to deter and reduce the effects of
attack, and a robust program of new construction to replace
inadequate, vulnerable facilities.

The proposals for additional security will be complemented by a review
of how the U.S. Government manages its overseas presence as called for
in the recently completed report of the Overseas Presence Advisory
Panel. The Secretary of State will lead this review to ensure that the
U.S. maintains an efficient and effective presence overseas.

The new budget for enhanced embassy security includes several major
components:

New Construction

-- Invest $500 million in new overseas facilities in FY 2001, an
increase of $200 million above the FY 2000 enacted level.

-- Consolidate the requirements of all foreign affairs agencies in new
embassy construction.

-- Establish a solid foundation for future years with a $3.4 billion
advance appropriation.

Increase Protective Measures

-- Invest $200 million to begin a new series of increased protective
measures such as perimeter barriers, alarms, and access control
equipment for overseas facilities to meet applicable diplomatic
security standards and address emergent needs as they are identified,
an increase of $200 million over FY 2000 enacted.

Sustain and Improve Security Readiness

-- Maintain a high level of security readiness at a cost of $342
million in FY 2001, an increase of $74 million above FY 2000 enacted.
This cost includes both the recurring costs of additional security
measures such as guards for overseas facilities and the operation and
maintenance costs of security improvements already in place.

-- Augment security personnel corps with an additional $16 million for
161 security professionals to create a surge capacity to respond
quickly to evolving terrorist threats.

-- Increase support for the Anti-Terrorism Assistance Program to $68
million, an increase of $35 million above the FY 2000 enacted level,
to provide a robust training component. This funding level includes
$30 million to establish a center for anti-terrorism and security
training to meet growing worldwide demand for ATA programs.

(end fact sheet)

(Distributed by the Office of International Information Programs, U.S.
Department of State.)