LETTER FROM JOAN VEON

EXECUTIVE DIRECTOR

THE WOMEN'S INTERNATIONAL MEDIA GROUP, INC.

P. O. BOX 77

MIDDLETOWN, MD 21769

The following comprises over three months of hard research in compiling information and then boiling down into abstracts which provide will provide an overview as to events since September 11. These articles only deal with the structure which is being put in place above the nation state. It is this structure which will make the countries of the world one. September 11 was the "point of no return" to our constitutional way of life. It appears that we are being transitioned from the Constitution to the UN Charter. The following does not comprise my report on September 11 but is part of the documentation from which I will draw my conclusions. I invite you to READ IT, PRINT IT OUT, PASS IT AROUND and draw your own conclusions from THEIR WORDS.

ABSTRACTS - SEPTEMBER 11

WE ARE IN A TIME OF TRANSITION FROM THE CONSTITUTION

AND THE FREEING OF THE NATION-STATE

ABSTRACTS

FT, 8/21/01, 9 - Sea change for international shipping body - Michael Peel

The headquarters of the International Maritime Organization's London headquarters is a treasure chest of nautical memorabilia. Visitors are greeted by a statue of Poseidon donated by the Greek government. The IMO, which sets international rules on maritime safety and pollution, admits it has had to reform working practices that had fallen out of date. It has faced further criticism over the length of service of its secretary- general. THE IMO is the legacy of 100 years of efforts to set international rules on safety at sea. It first met in 1959 and is one of the smallest UN agencies with a staff of 300 and an annual budged of $26M. Its projects have ranged from clean-up work after the Gulf war to a review of technical rules following the 1999 oil spill off the French coast by the tanker Erika. Britain's National Audit Office which was its auditor has been replaced by V.K. Shunglu, the comptroller and auditor-general of India. The IMO receives part of its funding from countries outside the developed world. The main contributors include Panama, Liberia and the Bahamas.

WP, 9/6/01, A5, "Democrats to Pare Missile Funds - Vernon Loeb, Dan Morgan

Democrats on the Senate Armed Services committee plan to cut $1.3B from the Bush admin's $8.3B request for ballistic missile defense this week as an opening shot in this fall's battle over defense spending. Levin said the administration's request for a 57% increase in missile defense funds is "unjustified" militarily and strategically, particularly since Defense Secretary Rumsfeld has yet to tell the panel whether any of the money would fund research activities that violate the Anti-Ballistic Missile Treaty.

Any successful effort by Senate Democrats to substantially reduce missile defense funding and restrict Bush's ability to modify or withdraw from the ABM Treaty would greatly complicate discussions the administrations plans to hold with both the Russians and Chinese.

Administration officials have been trying to fashion a new "strategic framework" with Moscow to replace the ABM Treaty, which prohibits numerous elements of the administration's missile defense plan. Sen. Levin favors transferring the money cut from missile defense funding to other military programs and authorizing the administration's full $328.9 billion defense request for the fiscal year that begins Oct 1.

Internet - 9/12/01 - www.emperors-clothes.com See WP 10/23/01 - "Congress Balks at Emergency

Reports indicate that Bush will appear before the US Congress to invoke the War Powers Act, passed by the House in the 1970s to limit a president's ability to wage war unilaterally and arbitrarily, but destroyed as an effective mechanism for doing so in April, 1999 when the Clinton Administration, for the first time in US history was denied authorization to continue a war against Yugoslaviain a 213-213 vote in the congress. Within an hour of that vote, a Clinton NSC spokesman was on national t.v. shrieking that not only would the bombing not stop, but that it would be intensified.

By the US Congress accepting that crude diktat and appropriating funding for the continuation of the illegal war, it definitively signaled the end of the US Constitutional role of America's formal representatives to oversee and rein in the chief executive half president/half monarchin future acts of illegal military actions and aggression abroad. It appears that each successive American administrations push the boundaries of armed adventurism and catastrophe further.

Bush has declared that this is war. Bin Laden worked hand in glove with the US Central Intelligence Agency since the early 1980s in establishing his Maktab al-Khidamar network, which raised money and recruited jehadis the Afghan Arabs, estimated to be 10,000 strong to overthrow the secular Democratic Republic of Afghanistan. He was a joint assets of the CIA and Pakistan's Inter-service Intelligence, which the Afghan Northern Opposition, Russia and India insist still supports and controls him and his current Al-Qaida operation. The latter is supported by Pakistan, Saudi Arabia and the UAE....all loyal US and British client regimes and recipients of Anglo-American military protection and largesse. Target not to bomb are: Iraq, Syria, Libya and Iran. They are not linked to bin Laden in any conceivable manner but instead are vocal opponents of him and his activities; are in fact potential victims of the same. Read "Washington Created Osma bin laden" by Jared Israel at http://emperors-clothes.com/articles/jared/sudan.html#w.

WP, 9/13/01, A3 - "Bush Denounces Attacks as "acts of War" - Dana Milbank

Bush declared the terrorist attacks on the Pentagon and WTC "Acts of war" as Congress agreed to provide $20B for the effort to aid victims and punish perpetrators. In a session with leaders of the House and Senate, Bush stopped short of requesting a full declaration of war from Congress. Bush agreed with Congress to a $20B emergency funding authorization for aid and security. Bush and congressional leaders from both partiesseveral of them appearing in the White House driveway after a session with Bushtook pains to demonstrate their "shoulder to shoulder" determination to defeat America's adversaries.

FT, 9/13/01, 1, "US stock market closed for 3^rd day - Richard Waters

The 3 day shut-down is the longest break in US stock market operations since President Roosevelt closed banks and markets to try to re-establish stability in the depths of the Great Depression. The finance ministers and central bankers of the Group of Seven leading economies have said they were "committed to ensuring that this tragedy will not be compounded by disruption to the global economy."

FT, 9/13/01, 1 "Defiant Giuliani vows NY will rise from the rubble" - John Authers

Mayor Giuliani yesterday rallied Nyers and called for the support of the city's business community, defiantly insisting that NY would be able to recover its pre-eminent position in the world. "This city is the greatest city in the world, We're not only going to rebuild, we're going to come out stronger than before."

FT, 9/13/01, 15, "Welcome to the new, new world order" - Dominique Moisi

"We are all Americans" the front page headline in Le Monde, one of France's leading newspapers, set the tone without ambiguity. Today the saying is, "When America catches cold, the rest of the world sneezes," has a new variant: "When America is attacked, the rest of the world shudders." All over Europe, not only in London but from Paris to Madrid, from Berlin to Rome, the terrorists who struck at America have recreated the strong sense of western solidarity loosened by the end of the cold war. If the terrorists had wanted to unify the west, to transform the terms, if not the nature of the Israeli-Palestinian conflict andmaybe temporarilyto take Israel out of its sometimes self-imposed isolation, could not have done a better job. In 1961, John Kennedy proclaimed, "I am a Berliner." (40 years laterwe have this) What is certain is that we have entered a new world. In the west people will find their lives transformed, maybe radically, from the way they travel in the way they work. A Damoclean sword of hyper-terrorism will hang over our daily existence. What remains unclear is the meaning and possible definition of this new world. Has the east-west competition of the cold war era been replaced not by a north-south conflict but by the ideological struggle between the west represented above all by the US and the most radical elements of Islam?

Yesterday totalitarianism was made possible by the encounter between radical ideologies and modernity. Today hyper terrorism, born of the same ingredients, reveals itself as one of the darkest aspects of a global, interdependent world. The unpalatable conclusions Americans must face is this: if they want to protect themselves from the world, they will have to engage more directly in the affairs of the world. Engagement is the best form of protection.

FT, 9/13/01, 15, "A broad consensus against terrorism" - Javier Solana

Terrorism is the scourge of our times. None of us is immune. The terrorists resort to violent acts because they reject the values of the civilized world: the rule of law, democracy, an open society and freedom. More than once in recent history the US has come to the assistance of others in defense of the values of the civilized world. It is now right that it has that same support from its European friends We stand together in denouncing terrorism in any form and we are ready to uphold and defend those values that the terrorists reject.

First, only hours after this tragedy struck, the member states of the EU offered any urgent support that may be needed in helping with search and rescue, clearance and any other assistance that may be helpful in either NY or Washington. (2) as European ministers agreed at their meeting, we stand ready to offer our support in identifying and brining to justice all those who were behind these terrorist acts. Terrorism knows no borders. If we are to be successful in tackling terrorism, we also have to co-operate through sharing intelligence and in breaking down their networks. (3) We have to reflect together on how to manage a world that will be changed by this week's attacks. On a practical level, measures will clearly have to be taken to tighten up security worldwide.

We shall also have to build a new consensus with all those who are willing to work with us in combating terrorism. We cannot allow those nations or groups of people to be tarred with the terrorist brush.

FT, 9/13/01, 14, "The World wobbles" Gerard Banker/Ed Crooks

No one can yet be certain how this week's terrible events will change the global economic outlook. The wheels of the global financial system are still turning. A US recession is an even more immediate risk. The Fed gave additional reassurance that it stood ready to provide the necessary liquidity to prevent the nation's financial transactions seizing up. Central banks have been here beforemost recently after the 1987 stock market collapse and in the midst of the Asian and Russian financial crises in late 1998.

WP, 9/14/01, A37 - "A Long, Tough Job" - Wesley Clark

The attacks have raised the dangers posed by international terrorism to a new level. For the US, the weapons of this war should be INFORMATION, LAW ENFORCEMENT, AND ON RARE OCCASIONS, ACTIVE MILITARY FORCES. THE COALITION THAT WILL FORM AROUND THE US AND ITS NATO ALLIES SHOULD AGREE ON ITS INTENT. Our methods should rely first on domestic and international law, and the support and active participation of our friends and allies around the globe. Evidence must be collected, networks uncovered and faceless threat given shape and identity. In some cases, astute police work will win the day, here and abroad, in other cases, international intelligence collaboration may be necessary. Special military forces may be called on to operate in states that are uncooperative or simply unable to control their own territory. A second key challenge is to recognize that we are in an action-reaction struggle with a capable and competent adversary.

We must strengthen our protective measures at airports, at utilities and other public service facilities such as communications networks and prepare necessary public health and disease control capabilities for the possibility of nuclear and biological events. For a decade the US has periodically declared that its top priority, is to protect our people against international terrorism. This is a problem that now requires more active measures and a commitment to eliminate terrorism as a threat. Doing so requires an old concept, "decisive force" but defined and used in a new kind of war.

9/14/01, A9, "US rethinks Strategy for Coping with Terrorists" - John Lancaster

"We have judicialized more aspects of human behavior than any civilization in history, and we may have come tot he limit of that" said Steward Baker who served as general counsel to the National Security Agency from 1992 to 1994. "Frankly if Osma bin Laden did this, I am not really interested in bringing him back to trial." Daniel Benjamin a counter-terrorism specialist in the Clinton White House said such arguments posit a "false choice" between a military and legal response to terrorism. Benjamin acknowledged that "after an event like Tuesday, there has to be a fundamental shift" in how the nation defends itself against terrorism.

Lawmakers were not prepared yesterday to grant Bush's initial request for unrestricted authorities to wage war, fearing that such a resolution could return to haunt them if things turned sour. Lawyers on both sides are sitting down to try to figure out what needs to be done to give the president all the authority he feels he needs," while retaining an oversight role for Congress.

FT, 9/14/01, 8, NATO quick to set historic precedent" - Judy Dempsey

NATO is not known for its quick decision making, but when lord Robertson, the defense alliance's secretary general started the fist of three NAC meetings on Wednesday, there was already a sense among the 19 ambassadors that mere words of solidarity for the US were not enough.

When Lord Robertson has asked Colin Powell how they could help, Powell replied A united front against terrorism. Thirty hours later the NAC made one of its fastest and most historic decisions in NATO's 52 year history. If it was shown that the attacks against the US were directed from abroad, the NAC said, it would be "regarded as an action covered by Article 5 of the 1949 Washington treaty". In a nutshell, that article states that an armed attack against any of the allies in Europe or North America amounted to an attack against them all. Individually or together, they would assist the attacked party, taking "such action as it deems necessary, including the use of armed force". But on Wednesday, the NAC weaved into the article a new interpretation of what constituted an armed attack: terrorism. 50 years later, during a NATO summit in Washington that definition was broadened to include acts of terrorism, sabotage and organized crime.

If Washington plans retaliation it has several options: going it alone, relying on NATO or establishing a coalition of those willing to assist. "If the US wants us to invoke Article 5, which would mean access to our assets, it would have to prove to our satisfaction that the attacks came from abroad." Said a NATO military official. Several NATO members want guarantees that the US will not be given a "blank cheque" to use the alliance's assets such as airspace and its bases located in Europe, the Mediterranean and in Turkey from which to launch retaliatory attacks. The old cold war structures are dead and buried, said a NATO analyst. "All of usthe US, Europe, China, Russia and the Arab stateshave to find ways of co-operating over security as well as having a long-term united response. "If you think this week's tragedy was bad, think about terrorists getting their hands on biological, chemical and weapons of mass destruction."

FT, 9/15-16/01, 1, "Moment of silence falls around the world" - David White

Europe joined the US yesterday in an emotional day of homage to the dead from history's most horrendous act of terrorism. Five present and former US presidents led the mourning at Washington's National Cathedral. Hours before, much of Europe stopped in silence to pay respect to a devastated America and the victims of Tuesday's attack. From schools to stock markets, from Paris metro to Icelandic fishermen, the three minute pause to mark the horror of the events was unprecedented in its scale and unison. The queen, said to be deeply moved by the occasion, attended with the Duke of Edinburgh, the POW, Tony Blair, government and opposition politicians, British and US business leaders and representatives of different faiths, including the Muslim community. For the first time at St. Pauls, the Star-Spangled Banner was played in its entirety. At the close, many could no longer restrain tears as the Battle Hymn of the Republic resounded down the long nave.

FT, 9/15-16/01, 13, "The CIA's failure of imagination" - Edward Alden

This year Rumsfeld gave each member of the House Armed Services Committee a copy of the 1962 study on US intelligence's failure to foresee the Japanese attack on Pearl Harbor with the message that the US must always prepare for "the inevitability of surprise." In spite of an annual budget estimated at $30B, none of the agencies had gleaned the slightest warning that an attack was to come. This is particularly remarkable as evidence emerges that the 19 hijackers and their supporters had been planning the attacks for many months from bases within the US.

Good old fashioned spying has always been the weakest link in America's intelligence apparatus and was one of the few arenas in which the Soviet Union continually out-performed the US during the cold war. Said Richard Betts of the CFR. "What you really need to break these organizations is to penetrate themand that's very hard. If you can't penetrate them, you're dependent on the second-hand sources."

The National Commission on terrorism, a blue-ribbon group fo experts that reported to Congress last year, recommended that the CIA end its 1995 prohibition on recruiting terrorists and other "unsavory sources" as informants. The guidelines adopted to avoid tarring the CIA through association with criminals or human rights violators, have been an obstacle to success recruiting said Paul Bremer, who chairs the panel and was ambassador for counter-terrorism in the Reagan administration.

A second practice to come under scrutiny is the sharp distinction in US law between spying at home and abroad. The CIA is not allowed to conduct any operations on US soil and must pass any intelligence leads over to the FBI, forcing agencies with different cultures and methods to work together. Tuesday's bombings involved a co-ordinated plot carried out both abroad and within the US. Said Bremer, "It's quite obvious we're going to have to have a deep look at the whole issue of the surveillance of terrorists in the US."

Third, there is no single agency with authority over all the US intelligence gathering. Some critics argue that this leads to fragmented responsibilities. The US intelligence's biggest failure in connection with this week's events may have been in expecting the wrong sort of attack. The US has devoted growing resources to preventing chemical, biological or nuclear attacks. It has also fortified government buildings around the world against car bombs.

This article then concludes: "The intelligence lapse that allowed for Tuesday's attack was indeed much like that of Pear Harbor."

FT, 9/15-16/01, 3 EU looks to the skies to strike a blow against terror" - Peter Norman

EU transport ministers acted to tighten airline security within the EU in the first of several initiatives to strengthen the EU's anti-terrorism measures that include a special justice and interior ministers. The EU vowed to push for tougher standards when the International Civil Aviation Organization meets in Montreal on September 25. The transport ministers looked at way to tighten security at airports, on domestic flights, improve security for the cockpits and put in place a "one-stop security system that would harmonize such aviation standards throughout the EU.

FT, 9/15-16/01, 11, "Blair urges world to rethink how it fights terrorism" - Brian Groom

Blair has urged the world to "rethink dramatically" how it fights terrorism in light of US attacks. The PM signaled a review of British extradition laws, the mechanisms of international justice, the way terrorist groups are financed and their money laundered, and the links between terror and crime. David Blunkett, home (interior affairs) secretary, suggested that identity cards could be introduced to Britain to improve surveillance of potential attackers. The PM told a hushed and sombre House of Commons that Britain would stand together with the US to bring to justice those responsible for the 'hideous and foul' attacks. Blair said states that continued to harbor international terrorists would be regarded "as an enemy themselves". He continued about the deaths of 100 British citizens, "We are talking here about a tragedy of epoch-making proportions."

Broadening the issues beyond the specifics of the attack, Blair warned that fanatical groups capable of killing without discrimination would sue chemical, biological or nuclear weapons if they could. Blunkett said democratic governments needed to examine how they could increase co-operation in areas such as extradition. Some British laws were "absurd" and should be changed.

WP, 9/16/01, B1 - "No More Illusions- Gone Forever are the Barriers that Once Let us Stand Apart" - Robert G. Kaiser

The symbolism of these acts of terrorism is overwhelming. Perhaps, over time, the most important will be the collapse of the last barriers that have separated the U.S. from its global neighbors. For generations those barriers looked indestructiblemuch like the sturdy twin towers of the WTC. Now the towards are gone; in truth, so are the barriers. The terrorists responsible for these crimes certainly felt no barriers protecting the U.S. By acting as they did, they demonstrated to all Americans that whatever our personal preferences, we are citizens of a wider world that harbors many threats to our well-being.

We're all conscious of the profound transformations of the last half-century: the growth of Earth's human population from 2.5B to more than 6B; the creation and dissemination of nuclear weapons; the collapse of colonial empires and the transformation of geopolitics; the rise of the first serious threats to the long-term health of Earth itself; the evolution of a global economy that brings great blessings to somebut dislocation to many more. We recognize the existence of the global village, and our role in creating it. Our stubbornness on this score goes back to the earliest days of the republic. George Washington himself enunciated the dream that these new United States could live apart, insulated by oceans from foreign entanglements.

Americans have been fat and happy for two decadesnever before have we combined so much prosperity

with so much peace. Since 1980 the number of cars and trucks registered in this country has grown from 155 million to about 220 million. American households are now about $7.4 trillion in debt vs. $1.4 trillion in 1980. American households are now about $7.4 trillion in debt vs. $1.4 trillion in 1980. Twenty percent of Americans are now obese, more than twice the percentage 20 years ago.

PART OF THE NEW WORLD ORDER HAS BEEN THE COLLAPSE OF DISTANCE, LITERALLY AND FIGURATIVELY. THEE ARE ALMOST NO REMOTE PLACES LEFT ON EARTH. IN THE GLOBAL VILLAGE, THE POOR KNOW HOW POOR THEY ARE, AND HOW MUCH BETTER THE RICH ARE LIVING.

FT, 9/17/01, 4 - Central banks act to soften the economic blow - Gerard Baker

The world's central banks and financial regulators have been in constant contact over the weekend to discuss emergency measures to prevent last week's human catastrophe turning into a financial and economic disaster. Despite rumors of liquidity problems in various institutions, regulators said that the international financial system was functioning well with no serious difficulties in functions such as payment and clearing being reported. The US Federal Reserve and the ECB last week between them supplied about $300B in liquidity to the financial system by buying financial assets from banks and other institutions in the money markets. The Fed and ECB also arranged a $50B swap facility, to enable the ECB to provides dollars to any eurozone banks that might be experiencing liquidity problems.

WP, 9/17/01, 1 - "New Powers Sought for Surveillance" Walter Pincus and Dan Eggen

Bush officials are considering lifting a 25 year old ban on US involvement in foreign assassinations and loosening restrictions on FBI surveillance, part of an escalating war on terrorism in the wake of Tuesday's attacks on Washington and New York. The Justice Department plans to send a wide-ranging set of proposals to Capitol Hill this week that would include more power to conduct wiretaps, detain foreigners and track money-laundering cases, administration officials said. Said Dick Cheney, "If you're only going to work with officially approved, certified good guys, you are not going to find out what the bad guys are doing. It is a mean, nasty, dangerous, dirty business out there, and we have to operate in that arena."

Sen. Bob Graham said he would introduce a counter-terrorism package that would create a counter- terrorism czar inside the White House to establish authority for the CIA to recruit unsavory agents and expand the intelligence community's ability to translate intercepted messages in Arabic, Farsi and other languages used within suspected terrorist circles. His bill would imitate what was established fort the war on drugs, providing budget, authority and oversight to an individual who would be named by the president and approved by the Senate.

Colin Powell said the admin was reviewing an executive order issued by Ford in 1976 that bans U.S. personnel from engage in, or conspiring to engage in, assassinations. Some intelligence and terrorism experts have advocated assassinating bin Laden. Powell said on CNN that "we are examining everything: how the CIA does it work, how the FIB and Justice Department does its work. Ashcroft said one of the Justice Department's proposals would allow the department to seek authority to eavesdrop on any phone used by a suspect in a foreign intelligence case.

WP, 9/17/01, A6 - "For the FBI, a Chance at Redemption" - Peter Slevin

The inability of the FBI and US Intelligence agencies to detect the plot in advance seems certain to attract considerable inquiry. Many members of Congress have called the attack an intelligence failure and yesterday, AG Ashcroft urged lawmakers to grant stronger investigatory powers to federal law officers. Senator Charles E. Grassley said to FBI Mueller, "Wherever there are cells of terrorists in the U.S., ferret them out and get convictions."

WP, 9/17/01, A9 - Crisis Forces Shift in Policy As Bush Assembles Coalition" - William Drozdiak

The devastating attacks against the U.S. last week have forced a major foreign policy shift by the Bush administration, from a go-it-alone approach based on narrow U.S. interests to the pursuit of a global coalition against terrorism. The shift has been welcomed in foreign capitals. Almost from the day he entered the White House, bush drew criticism from some U.S. allies for his rejection fo the Kyoto Protocol on global warming and his vow to abrogate the 1972 Anti-Ballistic Missile Treatymoves regarded abroad as signifying an American retreat into a fortress mentality. It was only a matter of time" said a senior adviser to French Pres. Jacques Chirac, "America's power in the world may be unrivaled in military, political and economic areas, but in the era of globalization even a superpower cannot disregard the need for allies. Just like Clinton, Bush would have come to that conclusion, but the terror attack and the recent economic problems in the U.S. accelerated the process."

Many foreign analysts say Bush's declaration of war against global terrorism starts with some key advantages: [1] strong support in almost every corner of the globe, [2] The powerful endorsement when NATO's 19 members took the unprecedented decision under Article 5 of its charter to declare the terror strikes an attack against all members, opening the way for a collective military response [3] The U.S. gains support with a resolution passed unanimously by the U.S. Security Council, including Russia and China, which in the past have been hostile to the use of American military might. Said Philippe Sands, a British scholar and expert in international law, "The U.N. resolution provides a clear legal framework and gives a green light for the U.S. to employ military force at a time and place of its choosing."

"Russia while reluctant to offer military support was one of the first countries to endorse the U.S. anti- terrorism drive. India and Pakistan have set aside their bitter regional rivalry and appear ready to allow the use of their airspace and other facilities for retaliatory operations. Even Iran, which has long castigated the U.S. as 'the Great Satan' made what senior U.S. officials call 'a very positive statement'". Bin Laden operates in 34 countries and regions, making it more difficult to eradicate than a conventional force. If the U.S. were to pursue a broader military campaign in countries other than Afghanistan, it could arose opposition from Arab and other governments already trouble by U.S. support for Israel. Egypt and Saudi Arabia, two fo the closest U.S. allies in the Arab world, have expressed condolences but stopped short of unreserved support for a military campaign against terrorism. Bin Laden's war with America was launched after U.S. forces used Saudi territory as a staging ground for their counter-thrust into Kuwait; some U.S. forces remain on Saudi territory, which bin Laden claims defiles the holy sites of Islam. The Saudi rules have also expressed growing dismay with U.S. Reluctance to exert political pressure on Israel to withdraw its forces from Palestinian territories in Gaza and the West Bank. Some Saudi officials suggest it will be difficult for them to adopt a more accommodating posture to bring down the price of oiland ease the West economic downturnas long as the current tensions between Israel and the Palestinians persist.

Said Frank Umbach, a security specialist for Germany's Council on Foreign Relations, "The feeling in Germany and other European countries is that international terrorism can only be fought by dealing with the underlying political and economic causes."

FT, 9/17/01, 4 - Nations speed moves to deepen ties - Joe Leahy

The US Federal Reserve and the ECB last week between them supplied about $300B in liquidity to the financial system by buying financial assets from banks and other institutions in the money markets. The Fed and ECB also arranged a $50B swap facility, to enable the ECB to provides dollars to any eurozone banks that might be experiencing liquidity problems. Speaking after a meeting in Hanoi, ministers said they had adopted an agreement on the partnership proposed in 2000 which would be formalized next year in Brunei. ASEAN, Aust and NZ have several agreements on economic co-operation covering areas ranging from customs facilitation to human resources. In recent years, ASEAN has been moving closer to the more powerful economies of north Asia, particularly China, Japan and South Korea. Last year, the organization discussed setting up an East Asia trade zone with the three. ASEAN includes: Singapore, Thailand, Malaysia, the Philippines, Brunei, Indonesia, Cambodia, Burma, Laos and Vietnam. They also met wither counterparts from Europe and Asia.

FT, 9/17/01, 16 - Guarding the Home Front - Martin Wolf

Two things about this war are evident. It will be extraordinarily difficult to define, fight and win; and the way we organize "the home front" will play a decisive role in the conflict. The biggest long-term challenge to any open society vulnerable to assaults on so vast a scale is striking the balance between safety and freedom. (1) The movement of foreigners into and within societies will be questioned, (2) Immigration may be tightened, (3) Identity card could become the global norm, (4) In the effort to trace and freeze money used by the terrorist organizations, rules on bank secrecy may be changed. The way we work may also be reconsidered. There are two fare bigger long-term challenges. One is to maintain social harmony in countries with a multitude of different ethnic and religious groups. The other is to sustain internationally open economies and societies.

Four points need to be made: (1) There is likely to be a flight from risky assets which will put pressure on weak borrowers, including emerging market economies such as Argentina and Turkey, (2) there may be a partial reconsideration of the proposition that US assets are the world's safest which would drive the US dollar and US equity markets down. (3) Consumer confidence in the US may be adversely affected, (4) a downturn in US consumer spending could, given the parlous state of the rest of the world, worsen the global slowdown already under way.

Over the last five years, the US economy accounted for about 2/5's of global economic growth. Now only consumers are keeping the US out of recession. Unfortunately, they are under stress: savings rates are exceptionally low; the market value of wealth has tumbled; and unemployment is rising. A retrenchment was already likely before September 11.

FT, 9/17/01, 17, "this is not a war for armies" - Quentin Peel

Terrorism must be fought through security and intelligence and by tackling the misery in countries such as Afghanistan. September 11 was supposed to be the International Day of Peace. Kofi Annan had just issued an appeal for all to "try to imagine a world quite different from the one we know. Let us dare to imagine a world free of conflict and violence." Barely a mile from the UN headquarters, the reduction of the magnificent skyscrapers of the WTC to dust mock Mr. Annan's words. The single most sensational act of international terrorism has united people across the globe. This was not only an attack on America, but also on everyone living in the modern world. IT COULD AND SHOULD PROVIDE THE CATALYST FOR AN UNPRECEDENTED INTERNATIONAL COALITION TO RESIST TERRORISM AND FANATICISM AND THE HATRED, BIGOTRY AND IGNORANCE TO WHICH MR. ANNAN REFERRED. The reality is that terrorist groups capable of the sort of operation that attacked the Pentagon and destroyed the WTC are a threat to every established government in the world, whether American, European, Arab or Israeli, capitalist or communist. Fighting terrorism in the short term is above all a task for security and intelligence. The ONLY WAY TO FIGHT TERRORISM IN THE LONG TERM IS TO FIGHT THE CAUSES OF TERRORISM. THAT MEANS TACKLING THE MISERY AND DESPAIR IN COUNTRIES SUCH AS AFGHANISTAN. IT MEANS STRIVING WITH EVERY MEANS AVAILABLE TO BRING PEACE TO THE MIDDLE EAST.

French Foreign Minister Hubert Vedrine warned against igniting a "clash of civilizations" between the Western and Islamic worlds, which he claimed, "May be among the demented calculations of those who instigated the attacks" in NY and Washington.

WP, 9/17/01, A12 - "It's Going to Require constant Vigilance" - Excerpts from Tim Russert's interview with VP Cheney on NBC's 'Meet the Press' yesterday:

Cheney: "I think the important thing here is for people to understand...the world shifted in some respects. Clearly, what we're faced with here is a situation where terrorism struck home in the United States.

"Osma bin laden - He headed it up and organized it but it's a very broad, kind of loose coalition of groupings that includes not only his forces but it also includes, Islamic Jihad from Egypt. It includes a movement from Uzbekistan. The groups that are terrorist organizations, people that oftentimes move around them, some times share common ideologies that operate on a worldwide basis. We have to take down those networks of terrorist organizations.

Russert: When Osma bin Laden took responsibility for blowing up the embassies in Kenya and Tanzania, the U.S. launched 60 Tomahawk missiles into his training sites in Afghanistan."

Cheney: "We also have to work, through, sort of the dark side...We've got to spend time in the shadows in the intelligence world. A lot of what needs to be done here will have to be done quietly, without any discussion.

FT, 9/18/01, 18 - America's outspoken ally rallies the troops in Europe- Brian Groom

Of world leaders offering to support Bush, few have been as active as Tony Blair. Tomorrow he will visit Gerhard Schroeder, on Thursday he will talk to Jacques Chirac, then he will travel to Washington before returning for an emergency European Union summit on Friday. Blair has also targeted nations outside Europe. He spoke with Pakistan's General Pervez Musharrf and had lunch with Silvio Berlusconi. He previously has spoken to Putin of Russia and Arab and other European Leaders.

WP, 9/18/01, A27 - A Communist Comeback in Russia - Susan B. Glasser

A growing number of regions across Russia that decisively rebuffed Communist candidates in the early years after the fall of the Soviet Union have come to embrace them again, part of what political analysts call an increasing protest against the failure of Russian capitalism to bring better living conditions to the regions outside Moscow. With the Nizhny Novgorod election, "red governors" now control executive power in 35 of Russia's 89 regions.

FT, 9/18/01, 3 - Co-ordinated action offers swift show of solidarity - Ed Crooks

The co-ordinated rate cut by the world's leading central banks yesterday was an unprecedented demonstration of their determination to prevent last week's attacks tipping the global economy into a deep and prolonged recession. It was also a testament to the enormous international authority of the U.S. federal reserve. The Fed's 0.5% point cut was followed within hours by identical moves from the ECB and the central banks of Canada, Switzerland and Sweden. Even in September 1998 when the international financial system tottered following the collapse of LTCM, there was not simultaneous transatlantic rate cut.

WP, 9/18/01, A17 - Anti-Terror Push Stirs Fears for Liberties - Jonathan Krim

Said James Dempsey, deputy director of the Center for Democracy and Technology, "What is disturbing to people is just how swiftly Congress began grasping for anything to appear responsive to the outrage of the attacks.

WP, 9.18/01, A9 - US Adds Economic Weapons to Arsenal - Steven Mufson

the US has vowed to use its economic as well as military might to win allies and intimidate foes in its new war against terrorism. The US also wants toe enlist the help of foreign nations in tracking down money linked to terrorist grous. "Not just waging a usual war against these people but waging a financial war and enlisting the leaders of civilized world countries and their financial institutions in helping us identify who these people are, where their money is and taking it away from them," said Treasury Sec. Paul O'Neil.

FT, 9/19/01, 14 - Editorial "Intelligence Test"

The terrorist attacks on NY/WA marked a serious failure of intelligence, not least in the US. After the cold war, the intelligence agencies' main task was supped to be combating terrorism and organized crime. Many are asking how the world's best-funded intelligence services could have failed to uncover a meticulously planned operation carried out on US soil. One explanation is that the US has given up on old-fashioned spying. The annual budget for counter-terrorism is $12B, the CIA has run down its human intelligence capabilities. It has chosen instead to use technology; spy satellites, surveillance planes and electronic eavesdropping. The enormous capacity of US intelligence agencies to gather raw information far outstrips their ability to analyze and interpret it.

In order to combat small, loosely organized terrorist groups operating in America and Abroad they must be infiltrated. The US needs to spend more of its estimated $30B intelligence budget on recruiting and training field operatives and cultivating networks of agents and informers. The US needs to consider that there needs to be much more sharing of information between governments and closer judicial cooperation if the extra intelligence is to be of use. The US must do all it can to get access to Russian and Pakistani intelligence on Afghanistan, for example. Also, the US will inevitably have to do more spying at home.

WP, 9/19/01, - 1 "An Attack on the World" - T. R. Reid

Hundreds of people from more than 50 countries are reported missing among the rubble or confirmed dead. The twin towers of the WTC served as NY headquarters for companies from all over the planet. From Australia to Zimbabwe, from giant China to tiny Luxembourg and governments. China has reported 250 people missing, Columbia nearly 200, Turkey about 130, the Philippines about 115, Israel about 113, Canada between 45 and 70 and Germany with 170 people.

WP, 9/19/01, A6 - Attacks Shift Balance of Power, Alliances Among Interest Groups, - T. Edsall

The post-Sept. 11 agenda has prompted a detente between business and labor. It has strengthened the hand of the energy industry and weakened, momentarily, the environmental movement. It has forced civil libertarians on both the left and right into a united defensive posture in the face of calls for the expansion of government surveillance, search and arrest powers. the new alliance between business and labor is unlike any since the prosper days of the 1960s, when corporate America and the large industrial unions sought to share the growing economic bounty with a minimum of strife. This week John Sweeney and Tom Donahue, bitter political adversaries in recent years, together announced their support for major public and private investment in rebuilding the nation's economy and fighting foreign enemies. The Chamber has long opposed much domestic spending as a waste of taxpayer money to benefit SPECIAL INTERESTS. Said Donahue, "We will support the thoughtful expenditure of new dollars from Congress and the private sector to make available a stimulus that this economy needs to create jobs and expand the work force."

FT, 9/19/01, 2 - article talked about the central banks having a "SHARED RESPONSE".

FT, 9/19/01 - 1, Central banks follow Fed's lead in cutting interest rates - Ed Crooks

Central banks around the world yesterday followed the lead set by the US Fed and the ECB in cutting interest rates, as financial markets braced for a long period of international tension. The BOJ and BOE both made reductions, as did Hong Kong, Taiwan, Denmark, Kuwait and New Zealand. In an illustration of how far the Fed will go to provide liquidity and prevent a financial crisis, the benchmark Federal Funds ratethe interest rate at which banks can borrow money overnight-fell to 0.25% yesterday after the central bank injected a further $30B into the market. The Fed cut its target rate to 3% on Monday but in the wake of last week's terror attacks, it is prepared to push the actual rate low, making it easier for banks and companies to borrow emergency funds.

WP - 9/19/01, 1 "Justice Drafts New Rules for Deportation - Dan Eggen

the Justice Department has drafted legislation allowing the US attorney general to lock up immigrants deemed to be terrorist suspects and order them deported without presenting any evidence. The AG has created an anti-terrorism task force with representatives from every U.S. attorney's office in the country.

FT, 9/19/01, 4 "Pressure mounts on US to go to UN" - Carola Hoyos

In the week since terrorists attacked the WTC and Pentagon, the 15 member Security Council has adopted a single resolution . It contrasts sharply with the council's adoption of 12 resolutions on Iraq between the time Saddam Hussein's armies invaded Kuwait. Sensing that support for the US could wane, Kofi Annan, the UN S-G has been discreetly urging S/C members to avoid the divisions that have plagued the UN since the Gulf War. China has demanded that the UN S/C guide Washington's response to the attacks. Many at the UN believe Russia, which is expected to announce its position this week, will seek a more thorough discussion.

Iran and Pakistan which will be crucial to any US effort to launch strikes against Afghanistan, are also heavily relying on a UN process. Iran announced it would support a UN-led coalition against terrorism. Jacques Chirac president of France, is scheduled today to discuss the UN's role with Mr. Annan and China has said it is prepared to discuss any proposals to combat international terrorism at the Security Council. But a senior S/C diplomat said, "They (US) may well rely on article 51 of the UN charter. That together with resolution 1368 gives the Americans good international legal cover." Resolution 1368 which the S/C passed the day after the strikes, describes the attack as a "threat to international peace and security", language that some fear the US could interpret as authorization for the use of force.

Article 51 of the UN's charter allows any state to defend itself in the case of an armed attack until the S/C has taken measure necessary to maintain international peace and security. The text calls on all states to help bring to justice the perpetrators, organizers and sponsors of the attacks and work towards preventing further such tragedies.

However, overwhelming international support for US action immediately after the attacks is already falteringand the more quickly it weakens, the greater the role the Security Council should play, diplomats say.

Most at the UN hope Colin Power who has a close relationship with Annan and extensive experience of working with the UN during the Gulf War. "The UN is an extremely useful place for the kinds of responseslegal conventions, co-operation between states on police matters, intelligence, etc. that go beyond the purely military response to terrorism" said Shashi Tharoor, head of the UN information center.

WP, 9/20/01, A24 - Ashcroft Presents Anti-Terrorism Plan to Congress - John Lancaster

Leahy cautioned after receiving Ashcroft's anti-terrorism package that "If the Constitution is shredded, the terrorists win." The proposed legislation would provide law enforcement with more tools in the areas which include expanded electronic surveillance and the ability to detain suspects and deport immigrants. It also broadens or changes criminal procedures in terrorism cases, involving among other thingssubpoenas, search warrants and seizure of assets.

WP, 9/20/01, A18 - OAS Nations Activate Mutual Defense Treaty - karen DeYoung

The OAS agreed yesterday to activate a hemispheric mutual defense treaty in response to 9/11 terrorist attacks. Activation of the treaty was agreed by acclamation in a special meeting of OAS ambassadors in Washington. The 1947 accords obligations signatories to consider an attack from outside the region against any member nation to be an attack against all, and to come to one another's defense. A separate resolution called for foreign ministers of the 34 member nations to meet here Friday to consider new anti-terrorism measures. Formally known as the Inter-American Treaty of Reciprocal Assistance, the pack is commonly called the Rio Treaty. Its collective security commitment is nearly identical to that in a NATO defense agreement invoked last week. A similar provision has been activated in a defense treaty among the U.S., Australia, and New Zealand.

NYT, 9/20/01, C6, "SEC Plans an Extension of its Waiver of Some Rules - Stephen Labaton

Fed officials are preparing to extend an order waiving certain trading regulations to permit companies and executive to help prop up the price of their shares. The SEC said that the order which was to have lapse on Friday would be extended at least a week to allow companies time to take advantage of it.

WP, 9/21/01, A18 - "Blairs Comfort Survivors in NY" - Glenda Cooper

As NY and Britons bowed their heads together in prayer and shared their bond of sorrow, the walls of St. Thomas's Church resounded with a message from QEII: "Nothing can begin to take away the anguish and pain of these moments. Grief is the price we pay for love." The Blairs also came here to emphasize that the US and Britain stand side by side in this time of grief. At the church, the American and British flags were placed so close together that they almost entwined. "God Save the Queen" and The star- Spangled Banner" were sung with equal emotion and volume. The Blairs sat with former president Bill Clinton and UN SG Kofi Annan. (See 10/23)/01 - Britain urges UN to take post-conflict leading role)

WP, 9/21/01, A26, Unfolding Catastrophe for Afghan Refugees

The UNHCR is ringing its own alarm bell about the humanitarian disaster confronting millions of Afghan refugees. Yesterday the UNHCR launched a preliminary global appeal for $6M and urged governments to factor into their budgets funding for the dire problems of the displaced. High Commissioner RUUD LUBBERS issued an impassioned plea in the wake of the attacks in NY and WA to give some consideration to the unfolding catastrophe for about 3.7 million refugees

Russian Foreign Minister Igor Ivanov saying both Russia and the United States were democracies under the threat of terrorists, said the two countries had no choice but to fight this war "together". Speaking at a dinner given by the Nixon Center at the Monarch Hotel, Ivanov said, "We need to develop very clear international standards, not just label people for political reasons." There should be no double standards, he warned. "There are no good or bad terrorists." He continued, "Today we are sure there are countries that are allies with the US which finance these organizations. You cannot say, if this country is an ally we should close our eyes, and if not we should prosecute it." He emphasized the need to develop a "global mechanism" that would deal with capital flows and information technology and a legal framework for combating terrorism and managing border controls. "This is not a one-time action, this is a long, continuous work and we are prepared to work together in this area with the United States."

WP, 9/21/01, 1 - "President Outlines War on Terrorism, Demands Bin Laden Be Turned Over" J. Harris

Bush describing a titanic struggle between the civilized world and radical Islam, said he would not stop there. "Our war on terror will not end until every terrorist global of global reach has been found, stopped and defeated. We will direct every resource at our commandevery means of diplomacy, every tool of intelligence, every instrument of law enforcement, every financial influence, and every necessary weapon of warto the disruption and defeat of the global terror network."

WP, 9/21/01, 1 - Stocks continue to fall; Dow off 13% in 4 days - Greg Schneider

Stock prices fell for the 4^th trading day in a row since the terrorist attacks, dragging all major indexes to their lowest levels in more than 2 year amid a climate of investor uncertainty and fatigue. The Dow dropped to 8376 a decline of nearly13% in less than a week.

WP, 9/1/01, A19 - "Blair meets with Bush, Expresses Support for US [and UN]- Alan Sipress

Blair is one in a procession of foreign leaders coming to the US to show solidarity and consult about a likely military response. On a day when Blair also stopped in NY, German Foreign Minister Joschka Fischer visited a Manhattan fire station. After a meeting with UN Secretary Kofi Annan earlier in the day, Fischer joined France in pressing the U.S. to enlist the support of the United Nations in its fight against terrorism. "Fischer said, "There must be an answer against these murderous terrorists because no answer or a wrong answer or a weak answer would give a completely wrong message.

FT, 9/21/01, 3 - "US rallies Nato allies for global war on terrorism" - Judy Dempsey

US deputy secretary of state Richard Armitage told Nato ambassadors the bush admin. wanted a global campaign to fight terrorism that would be based on diplomatic, economic and military means. Armitage was very clear: "This will not stop in Afghanistan." Armitage said, "I came here to exchange information, to talk about the grand coalition that President Bush is trying to put in place and to make clear that this is about a GLOBAL WAR." He also said there was a possibility of pulling Iraq into the war. Another Nato diplomat noted that for some in the US administration, "this is still unfinished business 10 years after Bush's father

drove Saddam Hussein out of Kuwait." The diplomatic aspect of the campaign would focus on isolating terrorists while the on economic front, efforts would center on identifying how terrorist groups are financed and how to halt the funding flows.

FT, 9/21/01, 4 - Stage set for leaders to show solidarity" - Peter Norman

Tonight's special summit in Brussels will be the opportunity for EU leaders to demonstrate their solidarity with the US in the fight against terrorism. The first objective will to give the 15 leaders as a group the chance to rally behind messages of support delivered personally to President George Bush by France's Jacques Chirac and Tony Blair from the UK. (2) is far trickier, will be to keep up the momentum behind the decisions by EU ministerial councils since September 11. The EU is a collection of states that have voluntarily ceded sovereignty in degrees that vary significantly in different policy areas. Integration is furthest advanced in the single market. Apart from rules against money laundering the single market is not at the center of the battle against terrorism. 30 or so measures to strengthen police and intelligence co-operation with Europe and with the US mark a dramatic change of tempo for justice and home affairs ministers. The Commission's important proposals for a common EU definition of terrorist acts and a European arrest warrant for serious crimes were unveiled this week only because they had been under discussion for a year.

9/21/01, 4 - Stronger ties urged between police forces - Peter Norman

The EU stepped up its fight against international terrorism with an ambitious program for greater co- operation with the US and more effective action in its 15 member states. Justice and interior ministers approved about 30 measures to increase co-operation between police and intelligence services, toughen action against money laundering, tighten border controls, and create a bigger role for Europol, the EU's fledgling joint police body. "We are determined to take the necessary immediate steps to make sure European citizens are provided with the highest level of security so that we can thwart attacks and effectively combat terrorism,"said Antoine Duquesne from Belgium.

9/21/01, 4 "Europe steps up efforts to crack down on terrorism" - Jimmy Burns

Terrorist attacks in the U.S. have galvanized efforts in Europe to step up co-operation and camp down on suspected terrorists in individual countries. The German government has agreed to press ahead with extra security measures, including airport security, reinforcing its intelligence and security agencies and amending bank secrecy laws to identify funds for potential terrorists. Germany and Italy have proposed extra budget funds for intelligence activities, although the German government is being accused by opposition parties of using the terrorist crisis to raise taxes for other purposes. The biggest problem in Europe relates to lack of coordination between states, and between security agencies within the individual countries.

Only six member states of the EUthe UK, France, Germany, Italy, Spain and Portugal have specific anti- terrorist legislation in effect and they all differ on the precise definitions of terrorism. The EU justice and interior ministers gave the green light for a common definition of terrorism to be drafted. They also agreed to work on proposals for a common EU arrest warrant. They set December as deadlines. The common arrest warrant would be to cover all forms of crime. Because of their common security problems with Eta and IRA violence, both Spain and Britain have been pushing the idea of an EU arrest warrant, backed by a fast-track extradition process. The terrorist attacks in America have forged an unprecedented sense of common purpose on both sides of the Atlantic. And EU ministers have agreed to US involvement in several of their own anti-terrorist initiatives.

[40 POINTS TO COUNTER-TERRORISM]

Governments still need to agree to common ways of organizing their police and secret agencies and harmonize laws on issues such as data protection. Both Europe and US face the difficult balance that will have to be struck between human rights and effective counter-terrorism. Europol is expected to move from acting as a somewhat ad hoc working group to playing a more effective role of co-ordination between European police forces and secret services and between these and the US. But security experts remain far from agreed on the idea of an FBI-style European police force with national and regional forces and agencies guarding their independence.

FT, 9/21/01, 4 - 30 Year of terror in Europe

1972 - Black September - Palestinians militant kills 11 Israeli athletes at Munich Olympics

1974 - IRA bomb kills 21 in Birmingham pub

1977 - Red Army Faction (Germany) murders 3 public figures

1978 - Popular Front for Palestine kills to El Al aircrew in London

1978 - Red Brigade assassinates Aldo Moro

1979 - IRA bombs kill 212 solders at Warrenpoint - Northern Ireland, Lord Mountbatten assassinated in Ireland

1980 - German right-wing bomb kills 13 in Munich

1980 - Italian neo-fascist bomb kills 85 people and injures 200 at Bologna train station

1984 - IRA kills 5 people and injures another 30 in assassination of British prime Minister

1988 - Libyan extremists blow up Pan Am Boeing 747 on fight from London to NY over the Scottish town of Lockerbie killing all 259 people on board and 11 on ground

1994 - Algerian extremist GIA hijacks Air France airliner

1995 - GIA bomb in Paris Metro kills 8.

1998 - IRA car bomb kills 29 Omagh, Northern Ireland

2000 Greek left-wing assassins kill British defense attache in Eta.

FT, 9/21/01, 5 - "US plans 'homeland defense' - Edward Alden

Under the rubric of 'homeland defense' the US is in the midst of a massive clampdown aimed at foiling further terrorist plots. (1) On the water, the Coast Guard are boarding every commercial vessel bound for the US, delaying shipments in the search for weapons or other terrorist contraband. Recreational boats are banned form New York harbor, and forbidden anywhere else from coming within 100 yards of a navy ship. At the US land boards with Mexico and Canada, the customs service has declared a Level 1 alert.

FT, 9/21/01, 16 - Cleaning Up" - John Willman

The war against money-laundering dates from 1989 when the G7 set up the Financial Action Task force to attack the drug trade. The FATF, under the umbrella of the Paris-based OECD, has established 40 principles covering financial regulation, law enforcement and international cooperation. The IMF estimates that global crime and corruption generate flows of as much as $1,500B a year. Some of this passes through offshore financial centers such as Switzerland, Luxembourg, the Channel Islands and small Caribbean nations which offer either strict banking secrecy or lax regulation. Banks admit that until the 1990s it was relatively easy to move illicit funds through the international financial system. In the absence of legislation requiring scrutiny of customers, money-launderers could open accounts with minimal information about the ownership of the moneyespecially with private banks whose brand strength was guaranteed discretion.

The US Congress has refused to strengthen the Know your Customer rules , rejecting legislation in 1999 after criticism that it was a threat to civil liberties. Most countries also have requirements to report suspicious transactions to a regulator or intelligence organization with criminal investigators finding movements of funds valuable in detecting organized crime.

FT, 9/21/01, 17 - No half measures in the war against terrorism" - James Baker

The war against terrorism is one that the US should not be asked to fight alone. No one is secure. And no one can safely stand on the sidelines in the conflict to come. Terrorism is a global threat that demands a global response. The US can lead the response by virtue of its military power, economic strength and international pre-eminence. Whether we are speaking about direct military co-operation, law enforcement activities or intensified intelligence sharing, Washington will turn to the international community.

Harsh trade-offs will emerge as we calculate the direct and indirect consequences of our war. Military action in or near the Gulf risks disruption of oil supplies and soaring energy costs. And allies may waver as they count the cost of the casualties, budgetary outlays and lost commercial opportunities. VICTORY WILL REQUIRE A PROPER MIX OF MILITARY MIGHT AND PAINSTAKING DIPLOMACY, PUBLIC AND PRIVATE, OF THE MOST COMPLEX SORTA CAREFULLY CALCULATED MIX OF CARROT AND STICK, MORAL PERSUASION AND BLUNT TALK, VEILED THREAT AND INDIRECT PRESSURE. THIS WILL BE A COMPLEX, PROTRACTED WAR, FOUGHT ON MILITARY, DIPLOMATIC AND ECONOMIC FRONTS. IT WILL LAST YEARS, NOT WEEKS OR MONTHS. AND IT WILL DEMAND GREAT SACRIFICES, NOT ONLY BY TROOPS IN COMBAT BY ALSO BY CITIZENS WHO WILL FINANCE THE WAR AND BEAR ENHANCED SECURITY MEASURES THAT PROVIDE GREATER SAFETY, AT, SADLY, SOME COST TO OUR CIVIL LIBERTIES.

FT, 9/21/01 - 17, "A time for moral courage" - Jose Maria Aznar

Never in the course of history has there been such an accumulation of power of all naturespolitical, military, economic, cultural, scientific, and above all, ethicalas that concentrated today in the countries that share the principles of a co-existence grounded on democracy, liberty and respect for human rights. There is of course much that the international community can do. We must begin by punishing those responsible for such horrific attacks. BRINING TO ACCOUNT TERRORIST ORGANIZATIONS AND THEIR SUPPORTING NETWORKS REQUIRES NEW INSTRUMENTS, AND ABOVE ALL, MUCH MORE FLEXIBLE AND EFFECTIVE POLICE AND JUDICIAL CO-OPERATION. It is also necessary for the international community to target terrorism's source of funding. It is imperative, therefore, that countries work together to freeze any assets and investments held directly or indirectly by terrorist organizations.

WP, 9/22/01, B3, "U.S. Attorneys Begin Anti-Terrorism Task - Michael E. Ruane

Two Justice Department attorneys have been tapped to head up local anti-terrorism task forces set up this week. Their job is to coordinate the counter-terrorism activities and responses on a local level among federal agencies, and the state and local authorities to have, become front-line soldiers in the nation's war on terrorism. In Richmond, James B. Comey, managing assistant U.S. attorney said, "We gathered all the key federal agencies, the state police, all the major police departments in this division, and we explained to them what the attorney general had in mind." "The main purpose is that if we have information, the federal government, to share with them, there's an efficient means of sharing it. If there is a need to coordinate a response to a terrorist incident in this division, this group will get together to do it. It's a new role for U.S. attorneys, but it makes sense... because the U.S. attorney is the one person in the district who deals with all of these agencies on a regular basis.

WP, 9/22/01, C1, "Rueful Prophets of the Unimaginable" - Richard Leiby

"Unanticipated asymmetries:" The words were emphasized in italic for readers of a 1997 report that Antsen helped prepare, "Transforming Defense: national Security in the 21^st Century." Fighting war symmetrically means lining up our armies against their armies, tanks against tanks. That era is over. "Americans will become increasingly vulnerable to hostile attack on our homeland" warned another major report on national security, "Americans will likely die on American soil, possibly in large numbers." That conclusion was delivered two years ago. Hart and Rudman a bi-partisan commission worked more than 3 years and spent $10M to produce a 3 part report called, "New World Coming: American Security in the 21^st Century."

Though he wasn't at the hearing yesterday, Gingrich was hailed by Rudman as the "father" of the homeland security concept.

WP, 9/22/01, 1, "Wall Street Ends Worst Week in 68 years" - Steven Pearlstein

Wall Street yesterday wound up its worst week since 1933 as the American economy prepared not only for war but for recession. About $1.4T in stock value was wiped out in five trading sessions10 times the estimated property damage caused by the terrorist attacks on the WTC/Pentagon. Since 9/11, US corporations have announced the layoffs of 115,000 workers, mostly in airlines, travel and aerospace. Auto companies trimmed production while leading newspaper companies, steel makers and chemical manufacturers warned of lower profits in the months ahead. Unemployment which stood at 4.9% in August could reach 7% by next spring. With Friday's 140 point drop, the blue-chip Dow ended the week down more than 14% at 8235.81, the biggest percentage decline since July 1933. Since its peak in January 2000, the Dow has fallen 30% to levels last seen in October 1998. Technology stocks ended down 16%. Since its peak in march 2000, the index has fallen 72%. The broader S&P 500 stock index ended the week down nearly 12%. It has fallen 37% since the bear market began.

More than $9B left stock mutual funds during the first 3 days of this week. Hedge funds, pension funds and insurance companies were also reported to be heavy sellers as managers tried to raise cash and shift their capital to less-risky investments such as short-term Treasuries. Propping up the market were dozens of corporations that had announced plans to spend a total of $45B buying up their own shares under a relaxation of rules adopted by the SEC. The agency voted to extend the relaxed rules for another week.

WP/922/01, A3, - "For Bush, New Emergencies Ushered in a New Agenda" - John Harris

The twin demands of a sagging economy and an urgent new war on terrorism have transformed the philosophical heart of President Bush's agenda. The modern conservative movement which provided the base of this president's support in the 2000 election had several pillars. They included a distrust of centralized authority, an unyielding faith in free markets and a conviction that individuals should be left to succeed or fail on their own without the protection of a welfare state. But Bush's words and most powerfully in his speech to Congress on Thursday nightsuggest he has concluded that few of the old faiths that animated the conservative agenda before Sept. 11 have much relevance in the current emergency. Suspicion of a powerful national government gave way to a massive federal commitment to rebuild New York City. Devotion to free markets has yielded to an expensive promise to rescue the failing airline industry with government subsidies. And although conservatives once boasted of their determination to get government "off the back" of American people, Bushed warned that individual convenience must be balanced anew against the collective need for tighter security. Bush is working on a large economic stimulus package to stave off recession. He said a weak economy needs its pump primed by government with a big infusion of moneya basic precept of Keynesian economics that was at the heart of FDR's New Deal.

Some Bush allies said the image of Bush as an inflexible conservative was always a caricature. Said mark McKinnon who was a Democratic consultant before joining with Bush in Texas, "A lot of people had a one-dimensional view of him. But there's a humanity about him that came through in the last week, a judgment that transcends ideology."

WP, 9/22/01, A7 - Direct Authority Called Key in Homeland Agency - Ellen Nakashima

President Bush's new WH anti-terrorism office will succeed only if given enough direct authority to coordinate the myriad of government agencies involved in protecting the public from attacks on US soil. Ridge must have power over other agencies and their budges, have control on the ground when a disaster hits and have a direct line to other members of the Cabinet. Ridge will have his own budged and "significant" staff, officials said. He will coordinate the activities of about 40 federal agencies and departments and their interaction with state and local governments. He will, a senior administration said, be "sitting at the president's right hand."

9/22/02, WP, B9, "War Cry from the Pulpit" - Bill Broadway

President Bush announced to 3000 people that to "answer these attacks," on the Pentagon and WTC and "rid the world of evil." James F. Childress, professor of ethics at the University of Virginia said, "By talking about ridding the world of evil, he's moving into a crusade mentality, a holy war mentality." The service was interfaith: Muslin cleric, Rabbi, Roman Catholic, Greek Orthodox Church,

FT, 9/22-23/01, 8, "The Great Bear" - Philip Coggan

This is now one of the worst bear markets in history. If one combines time and severity, only 4 other US bear markets since 1914 are more significant: 1919-21 when the Dow fell 47% over 21 months; 1929-32 when the Dow fell 89% at the start of the Great depression; 1939-42 when the Dow fell 40% in the early stages of the second WW; and 1973-74 when the Dow fell 45% in the face of Watergate and oil price surge (not to mention the US going off of gold). Central banks worldwide have already cut interest rate before the attacks and have engaged in a further round of reductions this week. Add US tax cuts and a boost to government spending from defense and reconstruction and stock markets might be expected to "look through" declines in output and earnings to recovery. Not this time. 9/11 changed everything. (1) direct assault on the heart of the US financial system with immense human and physical costs (2) they introduced a new level of uncertainty. The nearest parallel may be the Gulf war when the US consumer confidence index fell from 101.7 to 55.1 within six months. The US has not seen enemy action on such a scale since 1812.

FT, 9/22-23/01, 5, "Full EU backing for US military response" - Judy Dempsey

EU leaders unequivocally threw their full support behind any military action carried out by the US in response to last week's bomb attacks on NY/WA. It was the strongest, collective expression of solidarity for the US, backed by a pledge to make 'the fight against terrorism a priority' of the EU. The commitments by the EU were accompanied with new measures aimed at combating terrorism that include the introduction of a European-wide arrest warrant, and the adoption of a common definition of terrorism. The warrant will replace current system of extradition between member states. It will also allow wanted persons to be handed over directly from one judicial authority to another. Any response by the US, leaders added was legitimate, since it was based on UN security resolution 1368, which allows states to defend themselves if attacked. The EU would also co-operate with the US in bringing to justice and punishing the perpetrators, sponsors and accomplices of "such barbaric acts." EU leaders called for the broadest possible global coalition against terrorism to be under the aegis of the UN. That coalition should include all candidate countries to the EU, Russia and 'our Arab and Muslim partners and any country ready to defend our common values."

FT, 9/22-23/01, 5, "Speech sends signals to rest of world - Stephen Fidler

Bush: "I WILL NOT YIELD, I WILL NOT REST, I WILL NOT RELENT"

FT, 9/22-23/01, 1, "US and UK set for joint action" - Brian Groom/Stephen fidler (Parliamentarianism)

The US and Britain are to take military action by themselves against bin Laden. Bush and Blair agreed that a tight command structure was needed and that the military operation should be undertaken largely, perhaps wholly, by their own forces. The agreement came before Bush addressed Congress (don't forget first time foreign leader present during this kind of speechthis time Tony Blair wonder what connection to the queen and Bush's visit before the G8 in July).

WP, 9/24/01, 1 "Action Slowed by Intelligence, Coalition Needs" - Alan Sipress

Wolfowitz used the meeting at NATO to repeat a long-standing U.S. concernthat the U.S's European allies should elevate counter-terrorism to the top of their agenda. In the closed-door session, he also urged the allies to take seriously the threat that terrorists might use biological or chemical weapons.

USA Today, 9/24/01, A19 - "We are all Americans" - Ottor Graf Lambsdorff

Among the victims in the world Trade were 100 German citizens. Forty years later from JFK in 1961 "I am a Berliner". The majority leadera Social Democratdeclared, "We are All Americans" to a roaring applause. Germans know that today the people of the U.S. need the support of their friends, and Germans are resolved to provide it. NATO's resolution underlines this conviction. WE ARE FIGHTING A NEW KIND OF CONFLICT WITH A NEW KIND OF ADVERSARY THAT REQUIRES NEW THINKING BY ALL ALLIES.

WP, 9/24/01 1, 'FBI Agents Ill-Equipped to Predict Terror Acts" - Joby Warick

The FBI has tripled its spending to stop terrorism, quintupled the number of intelligence gathers and revamped its bureaucracy to share information about terrorists across the government. In the past 2 years, the CIA cabled to the FBI names of about 100 suspected associates of bin Laden to be found in the U.S. The FBI lacks Arab agents who can penetrate terrorists cells and has too few veterans who see connections among foreign suspects and far-flung sites. Communications among U.S. intelligence agencies, particularly the FBI and CIA have always been a problem and cited by a report by the congressional appointed National Commission on Terrorism. The FBI is also hampered by a scarcity of Arab-American agents. FBI translators need more than just language skills. Law enforcement sensibilities and an ability to decipher street jargon are critical.

FT, 9/24/01 13 - The evolution of NATO - George Robertson-SG of NATO

On 9/12, NATO's 19 member countries took an unprecedented decision. For the first time in the history of the alliance, they invoked Article 5 of NATO's founding charter and agreed that if it was determined the savage attacks perpetrated on the US originated from aborad, they would be considered an attack on them all.

Throughout the past century the US supported Europe in its time of need. In both world wars, the US made an immense sacrifice on behalf of freedom and justice in Europe. Then throughout the cold war, it took the lead in preserving our collective liberty. No European or Canadian has forgotten that. That is why today, American's allies are with her in her time of need. Not because they have to. Not because it is politically expedient, but because it is the right thing to do.

With last weeks decision, NATO's members demonstrated, that the alliance is not just a talking shop, but a community of nations, united by values and interests and utterly determined to ack together to defend them if needed. What does that mean?

(1) The US must be supported in dealing with the immediate effects of this crisis. The US can count on 18 NATO allies in whatever way would be most helpful.

If we are going to avoid a repetition of these acts, the international community must come together in finding and punishing those involved. The terror networks must be smashed. That work has already begun, OUR INTELLIGENCE SERVICES ARE WORKING TOGETHER TO HELP PROVIDE THE US WITH THE INFORMATION IT NEEDS TO FIND THE CULPRITS. The solidarity between the North Atlantic Council which is an important forum for political consultation and information sharing is a powerful vehicle for demonstrating solidarity in time of crisis.

That solidarity will now demonstrate once again the most powerful way that the Atlantic Community is as solid as ever. We stand together in the face of the scourge of terrorism, to confront and defeat it. We stand united with the USalong with Russia and a growing coalition of countries around the world. This is a challenge that must be surmounted if we are to assure the safety and security of our societies.

What happened last week in the US was a watershed event. Nothing will ever be the same again. It is still too early to tell what further challenges NATO will face. NATO IS NOT THE LEAD ORGANIZATION IN COMBATING TERRORISM. BUT INTELLIGENCE SHARING HAS ALREADY INTENSIFIED. THE EURO- ATLANTIC PARTNERSHIP COUNCIL, WHICH INCLUDES ALL OUR PARTNERS IS LIKELY TO HAVE MORE EXTENSIVE DISCUSSIONS ON THE SUBJECT. We will look to strengthen NATO's capabilities for early warning, defense and deterrence on "asymmetric" threats in general. This could all have an impact on most aspects of NATO's way of doing business.

FT, 9/24/01, 2 - Solidarity with US diluted by unease" - Judy Dempsey NEW WORLD ORDER

Bush: Every nation in every region now has a decision to make. Either you are with us or you are with the terrorists. From this day forward, any nation that continues to harbor or support terrorism will be regarded by the US as a hostile regime." BUT SUPPORT IS NOT CLEAR-CUT. SOME ARE CONCERNED THE US WILL USE THIS CAMPAIGN TO BYPASS THE UN AND IMPOST A NEW WORLD ORDER." At the forefront in solidarity with the US is the European Union. EU leaders said any US response to the bombings was legitimate. Outside Europe, Japan, Canada, Australia and New Zealand have made similar offers. China as well. It is the Arab states which remain the most ambiguous towards Mr. Bush's war on terrorism.

Investors Business Daily - 9/24/01, A20 - "Despite Afghanistan's terror Role, U.S. continues to give foreign Aid" - Betsy McCaughey

The U.S. is the single largest sources of humanitarian foreign aid to Afghanistan. American resources have been pouring into a country sheltering Osma bin Laden . On May 17 Colin Powell announced that the U.S. was boosting humanitarian foreign aid to Afghanistan, sending over $124 million worth of products through international channels to a nation that provides sanctuary for bin Laden. The Clinton administration had also bestowed gifts on bin laden's hosts. Weeks before the bombing that massacred 17 American sailors on the Cole, Clinton's team raised humanitarian foreign to Afghan. Above the $100 million mark. Powell declared that states harboring terrorists "cannot be given a free ride anymore." If bin Laden is the culprit, then aid to Afghanistan must be halted immediately. A nation at war does not send aid to its enemies. Bush remarked in a phone call to Mayor Rudy Giuliani "It's a new kind of war." That's true, in the sense that our enemy wears no uniform, represents no government, caries no sophisticated weapons and hides among us. Bush is right to make plans for sustained bombing and ground operations against Afghanistan. What is needed now is the single-minded tenacity with which Churchill led Britain against Nazi Germany. Churchill said, "What is our aim? It is victory, victory at all costs, victory in spite of all terror, victory no matter how long and hard the road may be, for without victory there is no survival."

FT/ 9/23-4/01, 2 - "Putin pledges full co-operation - Andrew jack

Putin pledge cooperation "in the widest sens of the world" in the US-led efforts to clamp down on international terrorism over the weekend while holding back from specifying what such a contribution would mean.

UsAToday, 9/25/01, 12A - "Defeating Terrorism requires beating bureaucracy first" - Editorial

Forty government agencies have a role in fighting terrorism. The White House must decide which of these agencies Ridge should control. There are 301 ports of entry and each day more than 1.3 million people 340,000 vehicles and more than 58,000 shipments worth $8.8B cross our borders. Thousands of reservoirs, football stadiums, malls, train stations and airports are vulnerable. Hart and Rudman concluded that the first lines of home defense lie far from U.S. shores. They are diplomacy, intelligence and a Defense Department able to carry out quick strikes around the world to pre-empt attacks on our soil. That means, making sure the CIA moves away from its over-reliance on electronic intercepts and develops more human sources: snitches. It means making sure the Defense Department sets aside its appetite for Cold War weapons long enough to buy sturdy, low-tech weapons good for hunting terrorists in the mountains.

Critical homeland defenders:

Border Patrol Defense Intelligence Agency

Centers for Disease Control Department of Defense

CIA Department of Energy

Coast Guard Department of HHS

Critical Infrastructure Assurance Office Department of Justice

Department of Transportation Environmental Protection Agency

FBI FEMA

Immigration and Naturalization National Domestic Preparedness Office

NIH National Guard

National Security Council State Department

USA Today 9/25/01 - 3A - Experts call for reinforcement in money war - Dennis Cauchon

Bush 's executive order target "global terrorism" It does not cover terrorists who operate within one country. Paul O'Neil said, "Cooperate in this fight or we will freeze your U.S. assets."

FT, 9/25/01, 2 "Congress opposes bush terror package" - Peter Spiegel

Congressional Democrats and a handful of Republicansraised serious objections to parts of the bush admin's sweeping anti-terrorism legislation arguing that they gave the Justice Department unconstitutional powers. The bill, already scaled back from original versions, would give the FBI broader surveillance powersbroadening wiretapping laws and allowing agents to conduct searches without notifying suspects in some casesand allows federal prosecutors to seize all assets of those suspected of being terrorists. Some republicans said the measures gave the FBI unconstitutional powers to eaves drop and to search and seize property without proper judicial review. Republican Bob Barr, chastised Ashcroft for proposing the new surveillance measures for any investigation, not just those involving terrorism. Aschroft's package also amends immigration laws to give authorities greater powers to detain indefinitely foreigners believed to be involved in terrorism, a provision that provoked particular opposition from Democrats.

WP, 9/25/01, A3 - "Many Decisions, Many Risks - Dan Balz

One of Bush's challenges will be to persuade the country that the costs of the war on terrorism, both in terms of military casualties and future terrorist attacks at home are worth sustaining. Holding the international coalition together poses other tests for the administration with the danger of the US overloading the circuits of moderate Arab states. Bush has said the coalition he is building here will not resemble that of the Persian Gulf War.

FT, 9/25/01, 5 "Wake-up call" warns banks to co-operate - Richard Wolffler

Bush's order freezing terrorist assets is directed as much against international banks and governments as Osma bin Laden's network. The EO is intended to intensify pressure on foreign institutions either to close down bin' Laden's finances or hand over information on his financial network. It represents a sweeping extension of power for the US treasury to impose sanctions on international banks and other groups.

O'Neill will have broad discretion to assess whether the banks and governments are co-operating adequately with the US campaign against the Al-Qaeda network led by bin Laden. "This order is a wake-up call to financial institutions around the world" said O'Neill. O'Neill said, "Cooperate in this fight or we will freeze your US assets. We will punish you for providing the resources for providing resources that make these evil acts possible," he said. If he judges that the foreign banks and governments are un-cooperative, he can take a series of escalating measures leading towards the full blocking of assets. To close down terrorist finances, O'Neill will being an intensive diplomatic drive. He will be consulting foreign authorities and financial institutions to obtain information on terrorist property under their control and how to block it. Mr. O'Neil will work closely with multilateral groups including the Group of Eight, the UN and the Rio Group of Latin American Lenders.

FT, 9/25/01, 5, "Move back onshore may gain momentum" - John Willman [JV: this is getting ready for a cashless society]

President Bush presented the world's banks with a stark ultimatum: co-operate in freezing accounts linked to terrorism or see your assets frozen in the US. After the unfavorable publicity drawn by the banking industry in recent years over handling the proceeds of crime and money looted by former rulers, no bank concerned about its reputation wants to be found holding terrorist assets.

Bush acknowledged that some European countries would need legislative changes to meet US expectations. More than 10 years after the G7 setup the financial Action Task Force on money laundering, most countries are still short of implementing the 40 point plan agreed by the FTAF. The FTAF has currently blacklisted 19 jurisdictions, including onshore centers such as Nauru and Grenada. In June it published an analysis indicating that only 10of its 29 member countries complied fully with its recommendations.

FT, 9/26/01, 12, "Bigger Government - Gerard Baker

When commentators and politicians said the world changed on Sept. 11 they were thinking mostly about the emergence of the new threat to the US homeland. But as the Bush administration and Congress develop their response to the biggest crisis the US has faced since the second world war, it is clear that something else changed too. AMERICAS' LEGAL AND POLITICAL FRAMEWORK, WHICH ELEVATES FREE MARKETS AND DEPRECATES GOVERNMENT IS BEING REMODELED. Earlier concerns about the wisdom of aggressive regulation of financial institutions have been shelved in the battle against terrorism. The need to prop up the faltering economy in the wake of the attacks have become the primary domestic goal. If that means government acquisition of parts of the private sector and manipulation of securities markets, so be it. Mr. Bush granted Paul O'Neill what he described as "draconian" powers to punish and even shut down the operations of any foreign bank he suspects of not co-operating fully with the administration's global war on terrorism.

Last week the SEC temporarily suspended the application of Section 10 of the SEC which forbids "manipulative and deceptive devices" to lift restrictions on companies buying back their own shares in order to bolster their stock prices. Last Week, O'Neill said it was time to "socialize" the nation's aviation security system. Both houses of Congress passed legislation to channel $15B of public funds into the nation's ailing airlines. One clause of the bill enables the federal government to take a share in each of the big companies so the public purse might profit from any subsequent recovery in the companies stock prices. That came as Congress authorized an additional 40B in public spending on defense and security this year and next. Bi-partisan effort is well under way between lawmakers and the White House to enact a fiscal stimulus that could include as much as another $50B in public spending, the same amount in tax cuts and a return to deficit financing to pump-prime the economy.

It was no accident that the second world war completed the Great Depression reforms begun under Roosevelt's New Deal. It was during the Vietnam period that the second great expansion of the federal government this century took place with Johnson's great Society reforms that vastly expanded publicly funded health and welfare. The second factor is that for the first time this century, the US homeland can plausibly be said to be at real risk. The threat to America's territorial integrity and its citizens has not been seen since the early days of the republic.

FT, 9/26/01, 5 - US presses UN to threaten sanctions - Carola Hoyos

After 2 weeks of keeping its distance, Washington has taken its battle against terrorism to the UN. US diplomats are pressing the UN Security Council to draft a resolution that could pose the threat of international sanctions on any country that does not co-operate in isolating and prosecuting terrorists in its territory. Washington's decision to work with the UN on a long-term decision could help it gain support from countries such as China, Pakistan and Iran, all which insist the US needs further UN approval before it can launch military strikes against the perpetrators of the terrorist attacks of September 11. Since the attacks, US lawmakers have quickly reversed course, finally approving John Negroponte as US ambassador to the UN and releasing $582 million of the US's $2B debt to the UN. Bush has said he would push for the Senate to approve the UN's convention on the suppression of terrorist funding and the convention on terrorist bombings.

FT, 9/26/01, 4 - "shape of EU diplomacy may color events - Judy Dempsey

All 15 EU leaders have agreed to support the US militarily. Bush pledged to stop funds to terrorist organizations, EU officials immediately welcomed it. For some senior diplomats there is a nagging feeling that Europe's identity will be inextricably tied to and dictated by Washington from now on.

WP, 10/26/01, A35, "Why the UN is no Quick Fix" - John Ruggie [CFR, RIIA]

It is reassuring to know that Pre. Bush now feels that the UN has a legitimate role in so called nation- building; picking up the pieces and getting a country back on its feet after the implosion of its government, typically as a result of war. But the ability of the UN to do those things rests on certain conditions being metconditions that the UN itself lacks the capacity to produce. Why can't the UN step to the challenge now that bush is favorably disposed? Because it is severely limited by its member states in the kinds of military operations it can undertake. Governments voluntarily supply Un peacekeepers, or not, once the Security Council adopts a mission. The different national contingents that show up in the field have never trained together. Their officers do not know one another. The equipment they arrive with varies enormously in quantity and quality, and is typically incompatible. The UN lacks the resources to do serious contingency planning before a mission begins and the staff to fully backstop militarily demanding missions once launched.

In testimony before the Senate Foreign Relations Committee in 1999, I explained to Sen. Jesse Helms why it was important that the UN have a rapidly deploy able mission headquarters. Small teams of national military officers would be stationed at UN headquarters to do serious planning. Sen. Helms allowed that this might make military sense. Nonetheless, he remained adamant in opposition because he viewed it, not as a practical solution to a pressing world problem, but as a harbinger of "world government."

WP, 9/26/01, A3 - "Attacks Refocus White House on How to Fight Terrorism" - Mike Allen

In designing the way his WH and Cabinet would function, Bush followed a corporate model, with a strict hierarchy, clearly defined responsibilities and a central role for longtime loyalists. But the panes that crashed into the WTC and Pentagon refocused that agenda on fighting terrorism and ways to do it. A "war cabinet" composed of top national security officials from the WH, CIA, State Department and Pentagon has become the main decision-making body considering how the U.S. will frame its response to the September 11 attacks. And a "domestic consequences" group chaired by Deputy Chief of Staff Joshua Bolten, meets every day to deal with fallout from the attacks on the home front.

WP, 9/26/01, A4 - "New Homeland Defense Plans Emerge" - Eric Planin

Proposals for creating a super-agency to oversee intelligence, law enforcement and domestic security activities

Bush vowed to give Ridge a strong hand to coordinate the activities of more than 40 federal agencies and departments, including the CIA and the FBI, and to forge domestic policy to defend the public against terrorists much the way national security advisor Rice shapes U.S. foreign policy. The WH said that Bush intends to create the new Cabinet-Level office of Homeland Security by executive order.

WP, 9/26/01, A4 "Senators Question an Anti-Terrorism Proposal - John Lancaster

A Bush proposal would permit the indefinite jailing of non-citizens suspected of having ties to terrorist groups goes well beyond existing law and may be unconstitutional said some senators. Ashcroft said the provision would apply only to foreigners who already are subject to deportation proceedings for violations of immigration laws. But several senators questioned that interpretation. They said the measure would allow the government to jail any noncitizen deemed threatening to national security, without revealing proof and whether or not the detainee was subject to deportation on other grounds. The anti-terrorism bill would also strengthen the ability of law enforcement agencies to conduct domestic surveillance and promote the sharing of information among law enforcement and intelligence agencies. In defending this measure, Bush said, "But we're at war...and in order to win the war, we must make sure the law enforcement men and women have got the tools necessary within the Constitution to defeat the enemy." Sen. Orrin Hatch said he had no problem with the administration bill, calling it "a measured, targeted response to what we're facing here," and one that is "long overdue." Sen. Specter joined Sen. Kennedy in raising doubts about the immigration-related proposal, saying it appeared to permit the detention of noncitizens "without any evidentiary basis."

WP, 9/26/01, A7, - Rumsfeld says War will Need Backing of "revolving coalitions" - V. Loeb

Rumsfeld warned that the Bush admin's war on global terrorism would most likely takes years to win and cost more people their lives, calling it an 'unusual' conflict that 'cannot be dealt with by some sort of massive attack or invasions." Rumsfeld's reference to the need for 'revolving coalitions' offered an additional indication that the U.S. is girding for a prolonged campaign using a variety of military, intelligence and diplomatic tools, and involving action in other countries in addition to Afghanistan.

WP, 9/26/01, 1 - Saudis Sever Ties to Taliban; Russia Backs Use of Air Bases, Dana Milbank

The Saudi kingdom's severing of relations with Afghanistan's radical Islamic government and permission from Russia's defense minister for the US to use military facilities in Tajikistan came as the Group of Seven, the world's wealthiest nations, agreed to join the U.S. in freezing terrorists' assets. At the W.H. Bush met with Japanese prime minister Koizumi who offered non-military support.

*** (40 pts) FT, 9/26/01, 2 "G7 countries to seek stiffer controls on financial centers" - Int'l&econ staff

The G7 pledged to pursue a comprehensive strategy to disrupt terrorist funding around the world. The G7 finance ministers considered a new UN resolution to be proposed by the UK that would stiffen sanctions against financial centers that failed to comply with money-laundering guidelines and require authorities to report suspicious financial activities.

US officials are planning to travel to Gulf capitals later this month to press their investigation directly with banking authorities and financial institutions. Many countries whose help he needs will find it difficult to help without legal changes that could take time to implement. For some nations, it asked financial organizations to report assets to the CRIMINAL INTELLIGENCE AUTHORITIES which would recommend appropriate action. Giving the authorities powers to freeze accounts more generally needs amendments to a planned law on seizing criminal proceeds. While Spain said they cannot comply since it would require a judge to order the freezing of accounts, the EU is negotiating an agreement between member states to speed up freezing assets of the terrorists. France has complied and Italy is confident it has ample powers to take any action needed against financial activity of terrorists. THE SWISS FEDERAL OFFICE OF POLICE HAS SET UP A TERROR USA TASK FORCE TO CO-ORDINATE THE SECURITY SERVICES, BORDER POLICE AND CANTONAL POLICE AUTHORITIES AND CO-OPERATE WITH FOREIGN AUTHORITIES, IN PARTICULAR THE FBI.

WP, 9/27/01, A26-Editorial "Mr. Putin's Choice"

While denouncing the attack on the U.S. and international terrorism, he blamed the failure to prevent it on the world's dependence on the 'old security structures' fo the Cold Warsuch as NATO. He called for a 'comprehensive, purposeful, and well-coordinated struggle against terrorism," but insisted it could only take place if it were conducted under an international security system restructured to give Russia more influence. Putin told the German Bundestag, Europe would be better off as 'a powerful and truly independent center of international politics if it combines its own possibilities with Russia's."

WT, 9/27/01, A9 - U.S. Muslim community is diverse - Larry Witham

Black Americas who joined the Black Muslim movement in the 1950s gave Islam its first U.S. prominence, though immigrant Muslims have always formed the largest number of adherents here. Since 1965 when immigration act reopened U.S. doors to the Middle East, Africa and Asia, educated Muslims came here. Nearly 8 in 10 U.S. Muslims were born abroad and no imams or prayer leaders at mosques are America- born, according to the American Muslim Council.

WT, 9/27/01, A23 - "Intelligence First" - Randy Scheunemann

The decline of our clandestine capabilities has been in the making for decades. The Carter-Turner purges of the 1970s seriously damaged the CIA's covert capabilities. It was in the signature operations of the 1990s that CIA's flaws became abundantly clear. The efforts to undermine Saddam Hussein's terrorist regime in Iraq were a dismal display of ineptitude, timidity and failure. Coup plots were uncovered. Assets were killed. Sensitive equipment was lost. The most promising venturean umbrella coalition under the Iraqi National Congress was first supported, then undermined and ultimately abondoned by the CIA. Even today, CIA personnel spend more energy criticizing the INC than they do subverting Saddam Hussein.

The CIA's failures cannot be blamed on a lack of resourcesespecially since the 1998 attack against U.S. embassies in Kenya and Tanzania by bin laden. The CIA's Directorate of Operations rewards those who play the game at headquarters, not those who show innovation in the field. Reuel Marc Gerecht, a former senior DO operative has written eloquently of the CIA's inability to operate in the Middle East, Central Asia and North Africa. In the Atlantic Monthly two months ago he noted, "Unless one of bin Laden's foot soldiers walks through the door of a U.S. consulate or embassy, the odds that a CIA counter-terrorist officer will ever see one are extremely poor." I pose these questions:

1. When is the last time a CIA officer crossed a border without a passport and an escort?

2. How many CIA field agents have fluency in Farsi or Arabicor Dari, Pashto, Urdu, Kurdish or Baluch?

3. How does the CIA propose to penetrate cells made up of individuals that forged their ties over decades in the dust of Palestinian refugee camps, the chaos of Beirut or the killing fields of Afghanistan?

FT, 9/27/01, 12, - A World reordered - Lionel Barber

In the past week, the world has witnessed a geopolitical realignment potentially comparable to that of 1945 at the end of the second world war or the fall of the Berlin Wall in 1989. The US is mustering a coalition against terrorism that includes rivals such as China and one-time pariahs such as Cuba, Iran and Sudan. Regional powers such as India, Pakistan and Russia are also being forced to make strategic choicesas far-reaching as the Soviet Union's response to the US offer of Marshall Plan aid that accompanied the rescue of western Europe. The U.S. now has Putin's blessings to use airfields in the central Asian republics. The decision paves the way for US troops to be stationed for the first time on territory of the former Soviet Union. The immediate thrust of US policy is isolate of the Taliban. Phase two is resistance against the sponsors of terrorism that could target states such as Iraq and alienate members of the coalition. Russia views Tajikistan, Turkmenistan and Uzbekistan which are oil-rich as belonging firmly within its sphere of influence. Putin's move may therefore signal a more dynamic Russian foreign policy. Rather than merely asking Europe and the US to turn a blind eye to the crackdown against predominantly Muslim rebels in the breakaway republic of Chechnya, he may be preparing for a bigger game.

FT, 9/27/01, 12 - ID Cards - Editorial

Britainalong with much of the English-speaking world including the US - has long resisted a national identity card. The spectre of a totalitarian police authority demanding 'your papers please' has seemed incompatible with personal freedom.

Germany has long had a national identity card but that did not lead to the rapid arrest of the Baader-Meinhof gang. Spain has a machine-readable onemodern by current standards. It has not, over 30 years, stopped Eta. Proponents will argue that newer technologies such as fingerprint and iris recognition will make the new generation of cards more effective. But their effectiveness will be directly related to how intrusively they are used, and how far they become a requirement for virtually every transaction. They would have to be carried permanently and produced on the spot. Some changes better to combat terrorism are needed.

WP, 9/27/01, E1 - Marshals for the New Era" - Kirstin Downey Grimsley

The FAA, which views the expansion of the air marshal system as a key component of its sky defense strategy, is launching a nationwide search for personnel to join the reinvigorated program. Its size and scope have fluctuated over the years based on funding and political perceptions of the risk of highjackings. To get a head start on the expanded program, the FAA is training agents from other federal agencies including the Customs Service, Secret Service, the Immigration and Naturalization Service and the Bureau of Alcohol, Tobacco and Firearms.

WP, 9/27/01, E1 - Backup Systems Passed Trying Test - Justin Gillis

Years of planning and of mock disaster drills got their big test when 2 planes brought down the WTC. Across the country, the terrorist attack is prompting leaders of companies large and small to rethink disaster planning. It has raised the question of whether every company, large and small, need some form of "off site" computer backup to supplement the in-house tapes most of them keep already. That in turn raised the visibility of data storage companies. Iron Mountain Inc. of boston stores both paper records and computer tapes at 650 locations around the world.

A similar system operated by the Federal Reserve Board moves a lot of money domestically, while CHIPS, operated by the New York Clearing House, is strong in international transfers. If a factory owner in Tokyo pays a supplier in Calcutta for parts, odds are the transaction will go from Japanese yen to US dollars to Indian rupeesand will move through CHIPS in New York in the process. The people who run CHIPS keep its Manhattan location secret, precisely to guard against attack. Albert Wood sat at his desk the other day to demonstrate just how much money CHIPS moves. He punched in to show the system had transferred $653,595,691,068.36 to and from the far corners of the planet. He punched it again 1 minute 18 second later to show a total of $654,690,555,868.27. In other words, the system had moved nearly $1.1B from some place in the world to some place else in little more than a minute. Y2K HELPED ACCELERATE Disaster plans.

FT, 9/28/01, 10 - Shutting Fortress America's back door - Andrew Bounds

Hundreds of thousands of illegal immigrants try to enter the US through Mexico and Central America every year and their need for false papers and passports has fueled a booming illicit industry that could have helped some of the September 11 attackers. Colin Powell said, "Now individually and collectively, we must take concrete steps to tighten border controls, enhance air and seaport security, improve financial controls and increase the effectiveness of our counter-terrorism forces." The FBI has asked governments to investigate cases of Arabs who gained Nicaraguan nationality and lift secrecy on 21 bank accounts. The six countries of Central America have become a jumping -off point to the US for illegal migrants from around the world. In June, US immigration and Naturalization Service conducted the world's biggest operation against people-smuggling with 13 other countries. Over 16 days, 7898 people were held from 40 countries including Sudan, Iran and Egypt. Central America has promised its support. Its police chiefs have agreed to swap information on the movements of suspected terrorists but their forces are under-resourced, badly paid, susceptible to corruption and already grappling with an unprecedented crime wave.

WP, 9/30/01, A30 - "Canada Fears Military Isn't Up to the Fight" - DeNeen L. Brown

Canada has offered its support to the U.S. to fight terrorism. Drastic budget cuts have so weakened Canada's military that the country could not defend itself in war or contribute significantly to international security say officials. In the meantime, ships are sitting idle because Canada's navy does not have enough sailors to send all its destroyers to sea. The country's air force is "one deep" and faces 'significant shortfalls." The army does not have enough troops to deploy complete units, and its military equipment is growing dangerously close to "rust out." "Canada can now contribute only token forces to NATO, United Nations, and coalition operations" said the report by the Canadian Conference of Defense Associations, an umbrella group of retired military leaders.

"The world is changing and Canada must adapt its armed forces to the evolving military and security environment" said Defense Minister Art Eggleton. As the Cold War ended in the early 1990s, Canada closed bases throughout the country, cut military manpower from generals to privates, delayed replacing aging helicopters, submarines and tanks, and shifted to the 'niche' diplomacy of international peacekeeping. Retired Lt. General Charles Belzile, chairman of the Conference of Defense Associations said, "People are asking if we could defend our own country...There is no way we could defend it by ourselves. In the context of geography, we would work with the United States."

Canada spends only the equivalent of $167 per capita on defense while NATO members spend an average of $371. An additional $630 million per year would be needed to bring Canada's military back to its height. Although PM Chretien met with Bush last Monday, Bush did not make a formal request for military help from Canada.

9/30/01, A10 - In command of a nonconventional, anti-terrorism War - Dana Priest

On Oct. 12, 2000 the USS Cole in Aden Yemen was bombed in which 17 American sailors were killed. Army General Tommy R. Franks is the regional commander-in-chief of US military operations from Egypt to Turkmenistana 25 nation swath that includes Pakistan, Afghanistan and the Persian Gulf States.

WP, 9/30/01, A6 - Hill Puts Brakes on Expanding Police Powers - John lancaster

The administration's anti-terrorism bill which many lawmakers fear grants too much clout to police agencies, in particularly in the realm of electronic surveillance. They are wary of lowering barriers to the sharing of information among law enforcement and intelligence services. They object to a provision that would permit the indefinite jailingwithout trialof non-citizens suspected of ties to terrorist groups. Congress has welcomed: proposals to block financial transactions among terrorist groups, beef up border patrols and stiffen penalties for terrorists. Lawmakers are also sympathetic to a provision that would permit the use of "roving wiretaps" which cover all forms of electronic communication as distinct from single phone linesin terrorism investigations such as wiretaps are not limited to criminal probes. Rep. John Conyers said, with regard to provision that would allow prosecutors to introduce evidence in federal courts that had been obtained overseas by illegal wiretaps, that "we are deeply troubled. Permitting information for illegal wiretaps performed abroad against U.S. citizens to be used in the federal courts as the administration proposes iswell constitutional on its face."

No date - Washington Post - "Bush names Army General to NSC Post on terrorism" - Mike Allen

Bush has asked retired Army General Downing, a career specialist in counter-terrorism, to join the staff of the NSC as assistant to the president and national director for combating terrorism.

WP, 9/30/01, H1 - "A Tighter Hand in Doling Out Global Aid?" - Paul Blustein

The war against terrorism being mobilized by the Bush admin. will surely involve using the IMF/World Bank as financial tools of the U.S. led coalition, according to experts inside/outside the organization. That means the U.S. and its allies in the G7, the dominant shareholders of both organizations, will use their influence to funnel billions of dollars in loans on easy terms to strategically important governments such as Pakistan. Those kinds of loans, though financially beneficial in the short run to the governments receiving them, have a dismal record of boosting growth and living standards in the long run.

FT, 10/1/01 - 8 "Blair Plans tough measure to fight terrorism" - Brian Groom

Tony Blair gave notice yesterday that he was planning some of the most Draconian measures seen in Britain in an effort to ensure the country was not a "safe haven" for international terrorists. Emergency legislation will speed up extradition cases, tighten asylum laws and allow indefinite detention of terrorist suspects to flee to Britain. The government plans to hit terrorists finances by giving police power to freeze

bank accounts a the start of investigations rather than after suspect money has been moved overseas.

WP, 10/2/01, A14 - Guiliani Urges UN to Join US Fight - Colum Lynch

Rudolph Giuliani addressed the UN General Assembly yesterday drawing enthusiastic and repeated applause as he asked its members to join the United States in seeking the "total eradication of terrorism." In the past Giuliani has criticized the UN on matters ranging from city parking laws to what welcome should be accorded Palestinian leader Yasser Arafat. Giuliani is the first NY mayor since 1952 to address the General Assembly. Kofi Annan said, "Our home is your home and your home, this unique and historic city of New York, is our heroic and hospitable host city."

FT, 10/2/01, 1 "Bush steps up pressure on anti-terrorist measures - Peter Spiegel

both House and Senate membersfrom both partieshave expressed reservations about more than half of the 53 provisions in the bill, arguing that many of the measure violate civil liberties of foreign nationals in the US and give the FBI too much power to search and eavesdrop on Americans. Requests include:

1. Electronic surveillance - gives the FBI the ability to get a national wiretap on a suspect from just one regional district court. Allows investigators to tap any phone used by a suspect: currently a judge must okay taps on each phone line requested. US authorities permitted to use information gathered by a foreign government in court.

2. Foreign intelligenceallows any foreign intelligence information gathered by investigators to be shared will all domestic law enforcement agencies, including immigration and the FBI

3. Immigration - toughens definition of what constitutes terrorismrelated crime. Allows attorney general to certify a foreigner as a potential terrorist and hold the suspect indefinitely

4. Criminal justice - removes statute of limitation on prosecuting terrorism offences. Raises prison terms for those convicted of terrorism-related crimes. MAKES IT ILLEGAL TO KNOWINGLY ASSIST A TERRORIST.

5. Financial support-allows prosecutors to seize all assets of a terrorist organization; currently, the assets can only be frozen. Toughens laws against laundering money used in terrorist plots.

FT, 10/2/01, 2, "Terror weapons 'pose grave threat'" - Carola Hoyos at the UN - Quest of TERRORISM

Kofi Annan, called on the 189 member countries to tighten their restrictions on biological and nuclear weapons. Annan said, "The greatest danger arises from a non-state groupor even an individualacquiring and using a nuclear, biological, or chemical weapon." Annan called on countries to tighten laws governing the exports of goods and technologies used in manufacturing weapons of mass destruction and their delivery vehicles. Some suggestions: banning the sale of small arms to non-state groups. SINCE THE TERRORIST ATTACKS, THE WORLD HEALTH ORGAN. HAS UPGRADED ITS PROCEDURE FOR HELPING COUNTRIES RESPOND TO SUSPECTED BIOLOGICAL AND CHEMICAL ATTACKS, NOTING THAT PROPER SURVEILLANCE AND A QUICKLY CO-ORDINATED RESPONSE WOULD BE VITAL IN STOPPING LARGE NUMBERS FROM BEING AFFECTED. THE FIRST ORDER OF BUSINESS, SAID ANNAN, WAS TO SIGN AND RATIFY THE 12 EXISTING UN CONVENTIONS ON TERRORISM, IN PARTICULAR, THE CONVENTION ON TERRORIST BOMBINGS WHICH CAME INTO FORCE EARLIER THIS YEAR AND THE 1999 CONVENTION AGAINST THE FINANCING OF TERRORISM WHICH HAS GARNERED ONLY FOUR OF THE 22 RATIFICATIONS IT NEEDS TO COME INTO FORCE.

the General Assembly is working on the draft of a more general 13 th convention, which would address some of the unresolved issues in the existing resolutions. In his speech, Mr. Annan referred to the most contentious problem that has stymied agreement on an umbrella terrorist text for decades: "some of the most difficult issues related to the definition of terrorism" he said. There was a need for moral clarity as well as legal precision. "There can be no acceptance of those who would seek to justify the deliberate taking of innocent civilian life." Even the Security Council has not defined terrorism. The group established a committee to decide on a case-by-case basis what, or who, constitute a terrorist threat.

Rudolph Giuliani became the first mayor since 1952 to address the General Assembly.

AOL, 10/4, 01 - "UN Allied with US in Terrorism Fight" - George Gedda

A half century ago, many Americas used bumper stickers to advertise their feelings about the UN" "the US out of the UN and the UN out of the US"." In the aftermath of September 11 terrorist attacks, there has ben an unusual outpouring of support and sympathy for the US at the world body. Last Friday, at the US urging, the UN Security Council approved a resolution demanding that all nations freeze terrorists' assets, halt their funding and exchange information on their activities. To guard against foot dragging, the council created a committee to monitor compliance. The UN General Assembly is devoting this week to work on adoption of a new convention on terrorism that would incorporate key elements from a dozen existing legal instrument. The biggest stumbling bloc is to come up with a universally accepted definition of terrorism.

WP, 10/5/01, 1 - $300 Million More for Afghan Aid - Mike Allen

bush committed $300 million in humanitarian assistance. "This is our way of saying that while we firmly and strongly oppose the Taliban regime, we are friends of the Afghan people. "We are a compassionate people".

WP, 10/5/01, A26 - NATO Allies Offer Helps for US Military Action - William Drozdiak

NATO allies agreed to allow the U.S. unlimited use of their airspace and full access to their pots, airfields and refueling facilities as part of their contribution to any U.S. military response to the terrorist attacks of September 11. In Tokyo, the government said it would provide up to $160 million in humanitarian aid for an expected flow of Afghan refugees into Pakistan and send military cargo planes to deliver supplies. The 18 NATO allies consented to an 8 point wish list submitted by the US after NATO made the UNPRECEDENTED DECISION TO INVOKE Article 5 of its founding treaty which declares that an attack on one member shall be considered an attack against them all. The rapid acceptance of the entire set of its requests was applauded by the U.S. IN ADDITION TO OPENING UP THEIR AIR SPACE AND ALL OF THEIR MILITARY FACILITIES, THE ALLIES AGREED TO SHARE INTELLIGENCE RELATED TO TERRORIST THREATS, TO INCREASE SECURITY FOR U.S. EMBASSIES AND TROOPS BASED ON THEIR TERRITORY AND TO FILL ANY GAPS IN NATO DEFENSES THAT MIGHT OCCUR IF THE U.S. DIVERTS PLANES, SHIPS AND TROOPS TO THE AFGHANISTAN REGION. [This all sets precedencea global villageno difference in which toys you use]

Basle-Know your customer

FT, 10/6-7/01, 4, "US Congress prepares sweeping new laws to combat money laundering -Ed Alden

The US Congress is moving rapidly ahead with the most sweeping package of anti-money laundering legislation in more than a decade. It is doing so with the full support of an administration whose vies have undergone a dramatic volte-face since 9/11. While the WH wants new powers to go after terrorist groups, the legislation racing through Congress would have a much wider impact, making the most significant changes in US law since money laundering was declared a crime in 1986. It would force US banks and other financial services companies such as brokerage houses to increase their scrutiny of account holders, esp. those with foreign correspondent banks.

The Treasury and Justice departments both want new powers targeted at terrorist financing. These include a ban on carrying more than $10,000 in cash across US borders, authority to subpoena records from foreign banks that have correspondent accounts in the US and an expansion of the list of money-laundering offences.

THIS IS THE INTRUSIVE "KNOW YOUR CUSTOMER" RULE

FT 10/6-7/01 - 4 - U.S. Congress prepares sweeping new laws to combat money laundering - Edward Alden

The U.S. Congress is moving rapidly along with the most sweeping package of anti-money laundering legislation in more than a decade. It is doing so with the full support of the administration whose views on the subject have undergone a dramatic voite-face since 9/11. While the WH wants new powers to go after terrorist groups, the legislation racing through Congress would have a much wider impact, making the most significant changes in US law since money laundering was declared a crime in 1986. It would force US banks and other financial services companies such as brokerage houses to increase their scrutiny of account holders, particularly those involving correspondent accounts opened in the US through foreign banks. It would also vastly expand the powers of the treasury secretary to punish foreign banks if they refused to lift the secrecy that allows easy movement of criminal and terrorist money. The secretary could force these banks to identify the ownership of once-secret accounts and even bar them completely from correspondent relations with US banks. Before 9/11, such initiativesfavored by the Clinton Adminhad been met mostly with scepticism in the bush administration.

The Treasury and Justice departments both want new powers targeted at terrorist financing. These include a ban on carrying more than $10,000 in cash across US borders, authority to subpoena records from foreign banks that have correspondent accounts in the US and an expansion of the list of money-laundering offences. The administration's about-face has upset conservative groups that had enormous influence in the first months of the Bush administration. These groups, under the umbrella of the Center for Freedom and Prosperity, earlier this year persuaded O'Neill to scale back on international initiatives to penalize so- called tax haven countries that use bank secrecy to encourage tax evasion. They now argue that proposed new authority for the treasury secretary is "an unprecedented, vast and broad degree of power to give one official. It represents the effective abolition of financial privacy and due process. It is inappropriate in a country dedicated to the rule of law."

There are also serious questions about whether the new measure will really help in the fight against funding networks used by extremist groups. Treasury officials have pointed to concerns, for instance, with the roughly 180,000 "money service" businesses in the US which offer cheque- cashing, wire transfers and currency exchange. Among them are hawala organizations, a system the U.S. says has been used by the al-Qaeda terrorist group to transfer funds.

FT, 10/6-7/01, p. 4 - "Germany plans central bank account register" - Haig Simonian

Hans Eichel, Germany's finance minister unveiled an unprecedented package of measures to combat terrorist funding, including the creation of a central register f all bank accounts. The registered to be collated by the federal bank supervisory agency, will list the name, date and place of birth of all account holders, as well as the date when the account was opened, the name of the bank and the account number. Germany has some 2,900 banks and responsibility for investigating suspicious financial flows, whether involving banks or capital markets, has rested at state, rather than federal level. The proposal for a significant rolling back of bank secrecy in Germanywhere the Nazi past has put a special premium on data protectionwas criticized by the country's private banking federation. Eichel tried to play down the move and said a register existed in France and was being considered by the Netherlands. Also Eichel fleshed out proposals for a new financial intelligence unit in the federal finance ministry to combat money laundering. This would create a centralized agency which could call on the skills of specialized accountants and customs service as well as international bodies, he said. He also acknowledged the new measure would facilitate the battle against tax evasion.

FT, 10/8/01, 21 - Treasury to tackle liquidity issue - Jenny Wiggins

The US Treasury Dept. Is expected to pump additional securities into the bond market when it reopens tomorrow to resolve continuing liquidity problems. The Treasury department showed its concern with an unprecedented $6B auction of 10 year notes. It acted because the markets faced a unusual shortage of securities that could be used as collateral under what are know n as repurchase agreements or repos. The repo market is the engine of liquidity in the bond market. Under the terms of a repo, investors use Treasuries as collateral so they can raise cash to buy more bonds. Before the Treasury's move, holders of certain securities were able to borrow money at zero interest because the demand for their paper was so high. The Treasury's actions seemed to have some positive impact.

WP, 10/7/01 A8 - G7 Leaders Pledge Unity, Global Growth - Martin Crutsinger

The world's major industrial powers pledged yesterday to work together to boost growth in a global economy badly shaken by the September 11 attacks and to intensify their efforts to choke off money flowing to terrorist organizations. G7 finance ministers and central bank presidents said, "We stand united in our commitment to vigorously track down and intercept the assets of terrorists and to pursue the individuals and countries suspected of financing terrorists" said their one page statement. They said the Financial Action Task Force created more than a decade ago, would meet in Washington on October 29 and 30 to map out a comprehensive strategy to pursue terrorist finances. The group also released a one-page action lan detailing the efforts that would be made in each country to increase cooperation among nations to better track terrorists funds.

G7 ministers took the unusual step of holding a joint news conference after their closed-door discussions to show their solidarity in the fight against terrorism. Normally each country holds its own news conference. Russia was invited to participate with G7 countries because of the important role the U.S. hopes it will play in disrupting terrorist financing.

FT, 10/8/01, 26 - Distressed-debt investors home in - Jenny Wiggins

Even though the Fed has steadily lowered the Federal funds rate this year from 6.5% to 2.5%, making it cheaper for companies to pay off their debt, banks are keeping their tight standards and are not making allowances for companies incurring problems paying loan covenants. And with financing now pretty much closed to all but the most highly-rated companies, even lower interest rates will not help some debt-laden companies obtain loans. Companies that are burdened with larger amounts of debt are also not finding any joy in a deflationary environment. When inflation is rising, as it was in the 1970s and early 1980s, companies can pay down debt cheaply. But in the current environment companies are finding it far more difficult to pay down large amounts of debt.

FT, 10/8/01, 19 - A new code of conduct - Douglas Hurd

Tony Blair gave an eloquent speech on the subject last week but we should not let eloquence rise too far above reality. We are not spreading freedom across the world. We are concentrating on the manifest need to remove the threat from a particularly vicious terrorist group based in Afghanistan. As the war plan shrinks, the code of conduct becomes more ambitious. The Code of conduct address by the US government to itself is more significant. The US is paying its debts to the UN. Congress is being urged to give the president fast-track powers for a new world trade round. The US is deep in the process of helping Pakistan. The US is once again pressing both Israelis and Palestinians to stop killing each other. These policies are put forward as weapons for the war against terrorism. They add up to a notable shift towards a more active US foreign policy.

FT, 10/8/01, 21 - Treasury to tackle liquidity issue - Jenny Wiggins

The US treasury is expected to pump additional securities into the bond market when it reopens tomorrow to resolve continuing liquidity problems. Last week the Treasury Dept. showed its concern with an unprecedented $6B auction of 10 year notes. The Treasury acted because the markets faced an unusual shortage of securities that could be used as collateral under what are known as repurchase agreements. The repo market is the engine of liquidity in the bond market. Under the terms of a repo, investors use Treasuries as collateral so they can raise cash to buy more bonds. Supply of shorter-dated Treasury securities, 5 year and 10 year notes, which had been tight for some time, became even tighter following the World Trade Center attack.

(No declared war)

WP, 10/8/01, A23 - "Our New Security Framework" = Sam Nunn

When an enemy strikes suddenly and catastrophically, decisions and actions that would normally take 5 to 10 years are made in a few months. We have an imperative now to integrate this accelerated fight against terrorism into a new security framework that addresses the full range of dangers we face. This strategy must contain both short-term urgent initiatives and longer-term strategic thinking. What changed was not our vulnerability to terrorism but our understanding of it. What did not change is this: The most significant, clear and present danger we face is the threat posed by nuclear, biological and chemical weapons. We must under that threat reduction, diplomacy, cooperation, military power and intelligence are our first lines of defense against the spread of weapons of mass destruction and terrorism. Bush and Putin will be meeting in Texas. They could use the occasion to commit each nation to a course of action ensuring that our nuclear weapons and nuclear, chemical and biological weapons materials are safe, secure and accounted for with reciprocal monitoring. I also suggest that the two presidents issue an order directing their military leaders, in joint consultation and collaboration, to devise operational changes in the nuclear forces of both nations that would reduce toward zero the risk of accidental launch or mis- calculation and provide increased launch decision time for each president.

Finally, the United States and Russia could combine their biodefense knowledge and scientific expertise and apply these considerable joint resources to defensive and peaceful biological purposes. If the U.S. and Russia begin working together as partners in fighting terror and the threat from weapons of mass destruction, and if they encourage others to join, the world will be a different place for hour children and grandchildren.

WP, 10/9, A4, CIA Steps Up Scope, Pace of Efforts on Terrorism - Walter Pincus

The CIA has doubled the size of its counter-terrorism center since 9/11 attacks adding not only more of its own analysts and operations officers but also FBI and Pentagon personnel, including members of the Army's Special Forces. The center has become a hub for planning and overseeing offensive military operations in Afghanistan as well as key activities related to homeland defense. The center also directs clandestine activities in the terrorism area, including covert operations and recruitment of agents.

Although military officers from the US Central Command have always been represented at CIA headquarters, the addition of Special Forces officers involved in the Afghan offensive illustrates the major role intelligence is playing in the war on terrorism.

The overall pace of interagency intelligence activities has also increased. Without referring to past controversies and criticisms that intelligence had failed to stop operations by bin Laden, Tenent's memo said, "all the rules have changed." There "must be absolute and full sharing of ideas and capabilities" not only inside the agency but in its dealings with "law enforcement, military, and other civilian agencies and other intelligence community colleagues."

Intelligence officials have stepped up their activities in the wake of the attacks. Since the attacks, Joan Dempsey, deputy director of central intelligence for community management has chaired a late afternoon intelligence community conferences with representatives of the Defense Intelligence Agency, the National Security Agency and the National Imagery and Mapping Agency. Reports pour into the counter-terrorism center not only from CIA operatives around the world but also from FBI agents who operate in more than 20 countries. Much of this information is derive from the liaison relationships both organizations maintain with police and intelligence agencies of the countries in which they operate.

(Theory: Wilsonian-international; unilateralism - live and let live and we will do our thingthat has won)

Collapse of government - REGIONALISM

WP, 10/9/01, A6, "Ridge Assumes Post Amid New Warnings of Possible Attacks - Eric Planin

Ridge 56 said Americans "should find comfort" in knowing that federal, state and local officials have launched an unprecedented mobilization to ensure their security from terrorists. An executive order signed by Bush yesterday vests Ridge as director of the Office of Homeland Security, with responsibility for coordinating a wide variety of federal, state and local security activities to combat terrorism, including the gathering and distribution of intelligence reports on terrorist threats, preparedness efforts to deal with potential attacks and actions to prevent such attacks. Ashcroft told reporters that more than 18,000 law enforcement organizations, 27,000 corporate security managers, banking and financial institutions, water service providers, information technology firms and railroads have been notified by the FBI to stay on high alert. EPA Administrator Whitman has launched a new effort to help guard the nation's drinking water supply from potential terrorist attacks. She said the agency would work with 168,000 public water systems nationwide to help them assess potential vulnerabilities and upgrade security and monitoring capacity.

(WG) WP, 10/9/01, A17 - "Blair Embraces a New Role as a Chief of War on Terror" - t. R. Reid

Going head to head with bin laden on the pan-Arabic network is just part of the job description for the 48 year old prime minister who has emerged as a CO-LEADER with President Bush of the global coalition mounting the war on terrorism. Two weeks ago, he traveled from London to Berlin to Paris to new York to Washington to Brussels in a 40 hour whirlwind. Last week found him in Moscow, Islamabad and New Delhi; he reportedly called off a trip to Oman, where thousands of British troops are on maneuvers. Blair has impressed TV audiences around the world with his support for the United States"We were with you at the first. We will stay with you to the last" he pledged. "This is a fight for freedom" Blair said in a major address last week that centered on his favorite concept, "community."

"And I want to make it a fight for justice, too. "Justice not only to punish the guilty. But justice to bring those same values of democracy and freedom to people around the world. That is what community means, founded on the equal worth of all." Like other prime ministers, Blair has been a stalwart supporter of the US-UK alliance.

WP, 10/9/01, A16 - Uzbekistan Bets Role in Region, Internal Security on U.S. Alliance - Susan Glasser

The president of Uzbekistan, Islam Karimov. Karimov has used many weapons, from torture alleged to have occurred in his jails, to military checkpoints on key roads, to US trained special forces. Now the former Communist Party boss has made an unprecedented alliance against Afghanistan with the United States by allowing the U.S. military to use a based here to station ground troops, planes and helicopters. Uzebkistan is hardly able to navigate its own post-soviet economic crisis. Weapons are outdated, military facilities rusting. Money that could have been spent on reforming Soviet-era collective farms or cleaning up environmental disasters has gone instead to maintaining the standing army of 200,000.

In joining the anti-Afghanistan alliance, Uzbekistan's immediate goal is not only to wipe out the Taliban, but also to crush the Islamic Movement which aims to oust Karimov and install a fundamentalist religious government here.

(WG) WP, 10/9/01, A13 - "US reserves Right to Attack State Sponsors of terrorists" - Colum Lynch

The U.S. served notice tot he Un that the US reserved the right to carry its military campaign against other countries harboring terrorists. In a letter tot he Security Council the US Ambassador to the UN, John D. Negroponte said the strikes underway are acts of self-defense under Article 51 of the UN Charter. The decision by the administration to evoke the UN charter's self-defense provision provided an added warning to countries such as Syria, Iran and Sudanwhich the US accuses of sponsoring terrorism but is now enlisting in its campaign against Osma bin Ladenas well as Iraq. Yesterday Syria was elected to a 2 year term on the Security Council without any vocal opposition from the U.S. and by secret ballot. Bush has stated that "Today we focus on Afghanistan, but the battle is broader". A senior administration official said, "Nothing the president said dictates what kinds of tools would be used. It's clear that the U.S. will go after terrorist groups with a global reach or states that harbor them, but exactly how we will go after them is an open question." Syria's membership in the Security Council as well as its proximity to Israel and its patronage of Lebanese-based Hezbollah forces, means that U.S. military action against Damascus could lead to broader, explosive conflict involving Israel.

FT, 10/9/01, 3 - US warns UN it may attack other countries" - Carola Hoyos

The US has warned the UN Security Council in a letter that it could take further military action against countries other than Afghanistan and target organizations outside bin Laden's al-Qaeda network. The US intention to possibly widen its military campaign has already raised serious questions among Security Council members, and looked likely to be the most pressing topic at a briefing the US and UK were due to give the council late yesterday. It also rang alarm bells at the UN secretariat. Kofi Annan implicitly but cautiously gave his approval by saying the US and UK set the strikes in the context of UN security Council resolution 1368, passed on September 12 and article 51 of the UN charter which gives countries the right to defend themselves. Mr. Annan added that the fight against terrorism must be pursued by all states of the world using many different meansincluding political, legal, diplomatic and financial.

The US and UK have been "playing very much by the rules," following Sunday's strikes, one Security Council diplomat said, adding that Sunday's military campaign was the first serious test for the US coalition against terrorism in the Security Council and beyond. Finding consensus within the Security Council could become more difficult from January, following the General Assembly's vote yesterday to give Syria, a country listed by the US as a sponsor of terrorism, a two-year term on the Security Council.

WP, 10/9/01, A9 - NATO to Send Radar Planes to Patrol U.S. Coast - Keith Richburg

The NATO alliance plans to send 5 European radar planes to help protect the East Coast of the U.S. from attack, taking over responsibilities normally handled by U.S. aircraft that are taking part in the Afghanistan air strikes. Canada will send 2000 troops, including a commando unit; six warships, and six airplanes to join the campaign while France said it had intelligence agents on the ground working with the Afghan opposition.

The deployment of AWACs aircraft, 4 engine planes outfitted as flying radar-stations, is perhaps the most unusual manifestation of the division of labor emerging among the NATO allies. The joint cooperation will place European troops, in this case Germans, in charge of securing the safety of an American coast line. The AWACS are coming from Geilenkirchen air base in Germany. NATO officials call the new assignment symbolically significant. "It's a compliment from the United States that they're happy to have their skies patrolled by NATO" said Mark Laity, special advisor to NATO secretary general George Robertson.

The U.S. is getting aid from allies in many ways, including troops in the fieldBritish forces participatedaccess to ports and air fields, and the sharing of intelligence. The arrangements are structured to give the Brussels-based NATO a role in the anti-terror coalition, but maintain nearly complete field control in U.S. hands. On Tuesday, NATO plans to formally authorize a re-deployment of European naval forces to the eastern Mediterranean, in part to free up American naval ships there for the Afghan conflict. Earlier, in response to a request from the North American Aerospace Defense Command, a joint U.S.-Canadian organization, 12 additional Canadian jet fighters were assigned to patrol North American airspace, up from 4 before Sept. 11. Australia has offered 150 elite Special Air Services troops as well as refueling and surveillance aircraft, bringing the Australian commitment to 2000 troops. France already has offered use of its naval forces in the Indian Ocean, and defense ministry officials said today that intelligence agents are already on the ground in Afghanistan in contact with opposition Northern Alliance forces.

WP, 10/9/01, A3, "Hill is Due to Take UP Anti-Terror Legislation" - John Lancaster

The most significant, clear and present danger we face is the threat posed by nuclear, biological and chemical weapons.

FT. 10/10/01, 6, "Ridge Pledges to end turf wars to protect US soil" - Edward Alden

Tom Ridge compared his task to the most daunting in US history: building a railway across the continent, winning the second world war and putting a man on the moon. Mr. Ridge has been handed a wide degree of authority that may allow him to meet the challenge. His appointment is to coordinate the activities of dozens of federal agencies, including domestic intelligence and law enforcement, customs, immigration, transport and disaster relief agencies. Bradley Patterson, an expert on White House organization, compared the agency with the vastly powerful National Security Council. "His major function is coordination and that's exactly with the NSC does." The Homeland Security Office marks the third big innovation in White House policy making since the end of the second world war. The first came in 1947 when Truman created the National Security Council to co-ordinate and lead the US struggle against the Soviet Union. The second came in 1993, when President Bill Clinton created the National Economic Council, empowered to raise the importance of international and domestic economic matters in the US government after the end of the cold war. The Homeland Security Office now elevates the counter-terrorism campaign to the same plane. The Homeland Security Council, chaired by the president, will include the heads of the intelligence and disaster relief agencies as well as the secretaries of defense, health and transportation, and the attorney-general. Its mandate will be limited to the counter-terror effort within US borders. But it includes intelligence-gathering and sharing, security of US borders and air space, protection of power plants and other critical infrastructure, and public health preparedness for attacks with biological or chemical weapons.

(P) WP, 10/10/01, 1 "bush Edict on Briefings irks Hill" - Dana Milbank

Members from both parties objected strongly to Bush's highly unusual step of ordering that briefings with sensitive information be limited to eight of the 535 members of Congress. The memo cuts off numerous lawmakers cleared to receive classified information. "To put out a public document telling the world he doesn't trust the Congress and we leak everything. I'm not sure that helps develop unanimity and comrade- ship" said Chuck Hagel who is on the Foreign Relations Committee. Said Senate Armed Service Committee Chairman Carl Levin, "We have to have classified briefings if we're going to do our oversight role." Bush, appearing in the Rose Garden with German Chancellor Gerhard Schroeder, gave Congress a stern lecture. "I understand that may be some heartburn on Capital Hill. But I suggest if they want to relieve that heartburn, that they take their positions very seriously and that they take any information they've been given by our government very seriously. I want Congress to hear loud and clear that it is unacceptable behavior to leak classified information when we have troops at risk."

Long before Sept. 11, the White House battled to keep Congress from overseeing its decisions on energy and environmental policy; the congressional investigative arm, the GAO, is contemplating a lawsuit against VP Cheney over a refusal to hand over information. Stephen Hess, who served in the Nixon and Eisenhower administration said, the Bush admin was already the "most closed" he had seen in peacetime. ACROSS THE GOVERNMENT, INFORMATION HAS BEEN MORE RESTRICTED. THE HHS SAID THIS WEEK IT COULD NOT DISCLOSE WHICH ANTIBIOTICS WERE BEING USED TO TREAT ANTHRAX IN FLORIDA OR WHERE THE DRUGS CAME FROM FOR 'SECURITY REASONS.' The EPA has taken down a Web site with information about emergency plans and chemicals used at 15,000 sites nationwide. The Transportation Dept. has removed pipeline maps from its Web site.

At the federal level, the FEMA has responsibility for disaster response; the Pentagon has the backup troops, the HHS has an Office of Emergency Preparedness. The FBI has the network to find and isolate terrorists. Airport security rests with the FAA. Patrolling the shores is a Coast Guard responsibility. Guarding land borders is the job of the Border Patrol and Customs Service. Congress is seeking to impose a more orderly, regimented system on the administration. Joe. Lieberman and Mac Thornberry are seeking to give Ridge's Office more formal authority.

FT, 10/10/01, 2 "UN urges Washington to Limit Civilian Deaths - Carola Hoyos

Members of the UN Security Council and UN officials have warned the US and UK that they must limit civilian casualties in their bombing campaign in Afghanistan. The sentiment was voiced most clearly by Chinaa permanent member of the SC. S/C members requested the UN's Secretariat provide daily briefings on the humanitarian situation in Afghanistan. After the4 first such meeting, the SG said the US/UK had assured the group "all efforts would be made to avoid civilians and their efforts would be targeted and focused on the alleged perpetrators."

FT. 10/10/01.10, London 'still dominant as a finance center' - Christopher Swann

London has retained its dominance as a global financial center in spite of the introduction oft he euro, according to figures published yesterday by the BIS. The data, drawing on research by 48 central banks showed that more than 30% of spot foreign exchange turnover is dealt in London. This is unchanged since 1998. [There are those who said that London would be penalized for staying outside fo the euro.] Yesterday's figures provide the clearest evidence that this has not yet happened. In fact, London's slice of currency trading was equal to that of its three nearest rivals with the us taking 16%, Japan 9% and Singapore 6%.

FT, 10/10/01, 10 Intelligence budges rise amid terrorism threat " - Jimmy Burns

Britain's spies are due to receive a substantial cash boost from government. MI5, the security service, SIS, the secret service and GCHQ, the communications center, are expecting their operational budgets to be significantly enlarged next year for the first time since the cold war.

FT, 10/10/01, 15 - The need for a new imperialism - Martin Wolf - NEW WORLD ORDER

Tony Blair is an ambitious man. Courageously and rightly, he is determined to support the US effort to end the terrorist threat from Afghanistan. But he wishes to achieve far more. As Mr. Blair told the Labour party in his conference speech last week, "I believe this is a fight for freedom...not only in the narrow sense of personal liberty but in the broader sense of each individual having the economic and social freedom to develop their potential to the full." Mr. Blair views today's events as a chance to reorder the world. The aim entails a transformation in our approach to national sovereigntythe building block of today's world.

Afghanistan is, after all, just an extreme version of the failed state. After decades of war, the regime fails to provide the elementary conditions for secure existence, let alone the economic development. Any failing state is a cradle of disease, source of refugees, haven for criminals or provider of hard drugs. Bad though it is for the rest of the world. A few years ago, Robert Cooper, a British diplomat, presciently identified the challenge posed by what he called the "pre-modern world, the pre-state, post-imperial chaos." He listed Afghanistan in this category. "The existence of such a zone of chaos is nothing new, but previously such areas, precisely because of their chaos, were isolated from the rest of the world. Not so today...If they become too dangerous for the established states to tolerate, it is possible to imagine a defensive imperialism. If non-state actors, notably drug, crime or terrorist syndicates take to using non-state bases for attacks on the more orderly parts of the world, then the organized states may eventually have to respond."

Afghanistan is an example of such a failed state: it is divided into mutually suspicious tribal groupings; it is desperately poor; war has become a way of life; the ruling regime funds itself with money from export of hard drugs; and Osma bin Laden is the godfather. IF MR. BLAIR'S WORDS ABOUT A NEW WORLD ORDER ARE TO BE MORE THAN VACUOUS BLATHER, HE HAS TO HAVE A PLAN FOR TURNING THESE VACUOUS SPIRALS INTO VIRTUOUS ONES.

If a failed state is to be rescued, the essential parts of honest government, above all, the coercive apparatusmust be provided from outside. This is what the west is doing today in the former Yugoslavia. To tackle the challenge of the failed state, what is needed is not pious aspirations but an honest and organized coercive force.

FT, 10/11/01, 1 - US Expects long-term role in Afghanistan - Stephen Fidler

The US yesterday signaled that it expected a long-term involvement in Afghanistan as the big powers began turning their attention to how the country should be run after the expected collapse of Taliban rule.

Mr. Powell said yesterday that the U.S. was in touch with all the different factions that might be involved in a new government. It was working closely with the United Nations which would have "a very, very important role." Blair said the alliance "could not alone form a government." A UK official said Britain favored the formation of a broad-based government including all ethnic groups and was receptive to an international effort to achieve that, perhaps led by the UN.

FT, 10/11/01, 1 - Joint move to counter bio-terrorism threat - Christopher Parkes

The US and Britain yesterday laid the foundations of a new international coalition to protect civilians against the threat of bioterrorism. Yesterday's pact was signed by Tommy Thompson and Mr. Milburn, Alan Rock, the Canadian health minister. It is understood that France and Mexico are among other countries interested in joining. Recent hearings on the level of US preparedness for biological or chemical attacks has generated concern about overlaps and poor communications between front-line doctors and local, state and federal authorities.

FT, 10/11/01, 6 "Civil rights concerns mount amid swathe of anti-terror laws" - Jean Eaglesham

Anti-terrorism measures being rushed on to the statue books in Europe and the US are triggering increased concern about the impact on the civil rights of individuals and businesses. The measures, ranging from electronic surveillance to the detention and extradition of immigrants, cover broadly similar ground. But the details and the basis on which they will be fought, reflect the constitutional and cultural differences between Europe and the US. The debate on surveillance is an example. Measuresincluded in the anti-terrorism bills expected o be passedwould reduce judicial controls on wiretapping. The requirement to prove "probable clause" of a crime would be relaxed for investigations where a "significant" purpose was to gather foreign intelligence. Government agencies would also be allowed to monitor some internet traffic, including email. This kind of legislation was passed in the UK and other European countries last year.

It could be argued that the failure to forestall the WTC attack stems from the failure of the intelligence agencies to use the powers they already have, rather than from short-comings. John Wadham, director of Liberty, the UK civil liberties group, argues that the UK "already has some of the most draconian [anti- terrorism] legislation. In many cases, going further is likely to raise questions about violations of human rights principles." Such "violations" could bring governments into conflict with the international courts.

WP, 10/12/01, A24 - German postwar Era Said 'Irrevocably' Over - Peter Finn

Chancellor Gerhard Schroeder declared today that Germany's postwar role in world affairseconomically powerful but militarily timidhas 'irrevocably passed' and that the country is ready and willing to send troops abroad 'in defense of freedom and human rights.' Schroeder who visited the U.S. this week and viewed the devastation at the site of the WTC in NY, appears to have returned home with a renewed sense of outrage. "We are all Americans," said parliamentarian Peter Struck, reformulating President John F. Kennedy's famous line, "I am a Berliner." Schroder said, "After the end of the Cold War, the restoration of German unity and the recovery of our full sovereignty, Germany needs to show a new international responsibility. We find ourselves in a decisive and probably long-lasting battle against international terrorism."

WP, 10/12/01, E1 - "Stocks Return to Pre-Attack level" - Neil Irwin

The stock market clawed back yesterday to its level before 9/11 attack.

Before Sept 11 10/12/01

Dow 9,605.51 9,410

Nasdaq 1,695.38 1,701.47

s&p 1,092.54 1,097.43

WP, 10/12/01 - A8 - Five year 'Sunset' Weighed on Anti-Terrorism Measure" John Lancaster

Under pressure from the Bush Admin, House leaders are considering a compromise under which the most controversial aspects of a far-reaching anti-terrorism bill would lapse in 5 years, instead of 2 as currently proposed.

FT, 10/12/01, 15 - Terrorism and Justice - Anne-marie Slaughter

If the US is serious about bringing terrorists to justice, it should be thinking about courts. George W. Bush appears to assume that the next step would be trial in US courts. Such a course would be swift but it would have enormous legitimacy problems for many other countriesnot to mention security problems for the U.S. It would in effect proclaim the US to be not only the world's policeman but also the world's judicial system.

A better alternative [than US courts] is some kind of international tribunal to work

IN CONJUNCTION with national courts around the world. The proposed ICC is one option, but it is not yet in existence. A preferable course would be to convene an ad hoc international tribunal with jurisdiction over all terrorist acts on or after September 11. It should be composed of justices from high courts around the world and co-chaired by a US Supreme court Justice and a distinguished Islamic jurist of similar rank. The best argument for such a court comes from Mr. Bush. In his address to the American people, he called for a global coalition against terrorism, to make this not America's fight but the world's fight. But if the attacks were an assault on the world, and the world's investigators, intelligence operatives, bankers, police officers and soldiers are helping bring the perpetrators to justice, so too should the world's most respected judges. This kind of court would help convince countries around the world that this is indeed a fight about protecting global values rather than projecting U.S. power. It would be particularly important for many Muslims because it would recognize the relevance and value of Islamic law.

FT, 10/13-14/01, 8 - "A Cool Head" - Quentin Peel and Carola Hoyos

KA said as he arrived at UN headquarters, "The world is a messy place. Unfortunately, the messier it gets, the more work we have to do." K.A. has been awarded the Nobel Peace Prize. One month after the terrorist attacks on the WTC and the Pentagon, the organization has been thrust into a central role alongside the US-led campaign against global terrorism. As US warplanes step up their attacks, the UN is being asked to play a leading role in re-establishing a broad-based and stable government there. The UN is critical to maintaining a broad-based coalition bridging the US and its allies. IT AMOUNTS TO A REMARKABLE TRANSFORMATION OF THE WORLD BODY, REGARDED WITH PROFOUND MISTRUST IN WASHINGTON A FEW YEARS AGO AND WIDELY SEEN IN THE REST OF THE DEVELOPED WORLD AS A CLUMSY AND BUREAUCRATIC TALKING SHOP. Said Ahmad Fawzi, director of UN information center in London, "We have been battered all over the place. There has been a lot of criticism, but we are going to have a big role in Afghanistan so it is a great morale booster. Kofi Annan is the first SITTING SG TO BE AWARDED THE NOBEL PEACE PRIZE. Kofi Annan has been more successful than his predecessors in enticing th4e US back as a full participant in the Un fold.

WP, 10/13/01, 1 - Anti-Terrorism Bill is Approved - John Lancaster

The House yesterday approved a far-reaching anti-terrorism bill that in most respects mimics legislation that cleared the Senate on Thursday, CONFERRING BROAD NEW POWERS ON LAW ENFORCEMENT AND INTELLIGENCE AGENCIES TO CONDUCT DOMESTIC SURVEILLANCE AND SHARE INFORMATION WITH EACH OTHER. In contrast several of the most controversial aspects of the House billrelating to wiretapping and other forms of electronic surveillancewould expire after five years. The Senate bill also includes a comprehensive set of money-laundering provisions that House leaders have elected to consider as separate legislation. MANY OF THE PROVISIONS CONTAINED IN THE HOUSE AND SENATE BILLS HAVE BEEN SOUGHT FOR YEARS BY PROSECUTORS, BUT WERE REJECTED BY CONGRESS AS OVERLY INTRUSIVE. NOW LAWMAKERS ARE EAGER TO ACCOMMODATE THE WISHES OF THE FBI AND CIAALARMING CIVIL LIBERTIES ADVOCATES WHO WARN THAT CONGRESS IS BEING STAMPEDED INTO DECISIONS IT WILL LATER REGRET.

On Thursday, House Speaker J. Dennis Hastert yielded to WH requests to substitute the Senate text for the House version, prompting Democrats to accuse Republican leaders of betraying the cooperative spirit they have had. Rep. Barney Frank denounced the maneuvering that led up to yesterday's vote as "the least democratic process for debating questions fundamental to democracy I have ever seen."

WP, 10/14/01, A16 - "In Federal law Enforcement, All the walls are down'" - Jim McGee

AT the FBI's Strategic Information Operations Center, the command post for the massive federal investigation into the terror attacks, technicians patch agents in charge of the 56 FBI field offices into one giant conference all. The FBI operations center is a 21^st Century communications and data-processing platform that serves as a microcosm of the unified police and intelligence system. The FBI operations center is the mirror image of the counter-terrorism center at CIA headquarters in Langley. There too, the CIA, NSA, DIA, FBI, Customs and others work side-by side. From 1995 to 2000, a series of anti-terrorism measures and spending bills headed the government back toward a unified system, an effort that was slowed by laws and institutional structures that were originally designed to limit federal power. One by one, obstacles were overcome by presidents operating in periods of crisis. Now the Bush admin. is embarked on the most extensive rollback of constraints on federal police and intelligence power.

One by one, obstacles were overcome by presidents operating in periods of crisis. Now the Bush administration is embarked ON THE MOST EXTENSIVE ROLLBACK OF CONSTRAINTS ON FEDERAL POLICE AND INTELLIGENCE POWER. The most controversial proposals are those that will make it lawful for the CIA and the U.S. military to tap into the awesome investigative might of the federal grand jury, the most powerful weapon in law enforcement's arsenal. If signed into law, the measure would allow prosecutors to readily share grand jury information with the CIA.

In tearing down the wall between federal grand juries and intelligence agencies, the Ashcroft proposal would also be removing the supervisory control of a federal judge, who under the current structure is the only person who can allow grand jury information to be shared.

FT, 10/14/01, 3 - "Congress fast track for counter-terrorism bill" - Christopher Parkes

The House was expected to move briskly yesterday to approve its version of a counter-terrorism bill that will better arm police, FBI and others to track suspects' movements, communications, finances and property. The ACLU, the most influential such group, said the legislation "would give the government expanded power to invade our privacy, imprison people without due process and punish dissent."

(Can't ask for a global tax if the economy doing wellbut if there is a need to "pull together" it makes more sense"But Dad, can't I have $50, I don't make enough money." ) At same time transfer wealth

FT, 10/14/01, 4 - Financial chiefs seek ways to prevent crisis" - Alan Beattie

Every Friday morning for the past 3 weeks six men have gathered in Washington to head off a potential global economic development crisis following the terrorist attacks on the US. Horst Kohler, IMF, James Wolfensohn, president of the world Bank and Enrique Iglesias, the president of the Inter-American Development Bank have been present in person; the presidents of the Asian, African and European development banks have joined them by video-conference. In a letter last week, they warned member governments that, while the IMF stood ready to cope with immediate problems, donors might have to stump up more if the economic downturn was not to derail economic development in poor countries.

FT, 10/15/01, 36 "Uncharted waters in New world order" - Renato de Grandmont

The 9/11 terrorist attacks on the US are changing world history. (That's it. Nothing in the article tied with the title.)

FT, 10/17/01, 3 "Leaders look to post-campaign peacekeepers" - Carola Hoyos

Lakhdar Brahimi, the UN's special envoy for Afghanistan, et the Security Council for the first time since his appointment, but revealed little of his plans to gain regional and international banking for a transnational governing body for Afghanistan after the fall of the Taliban. He is expected to travel to the region to drum up support for a political and humanitarian solution from Afghan neighbors, including Pakistan and Iran. The role of the UN in keeping peace among the Afghan warlords is far from clear. But widespread acknowledgment that the organization will play a leading part in the country's political and economic future was underscored yesterday when China called for UN involvement in building a future coalition government for Afghanistan. China will play a vital role in the debate over peacekeepers if that discussion takes place within the Security Council as they have been reluctant to support UN involvement in the international affairs of states.

FT, 10/26/01, 5 - "US announces new powers to hunt down terrorists" - Nancy Dunne

In the hour after Bush signs anti-terrorism legislation today, instructions will go out to US law enforcement agencies authorizing the use of sweeping new police powers to hunt down terrorists. DECLARING A NEW ERA IN THE FIGHT AGAINST AMERICA'S ENEMIES, ASHCROFT SIAD POLICE WOULD EMPLOY AGGRESSIVE ARREST AND DETENTION POWERS, "AIRTIGHT SURVEILLANCE" AND NEW TECHNOLOGIES TO TRACE TERRORISTS OVER THE INTERNET. THEY WOULD ALSO BEGIN TO USE NEW SUBPOENA POWERS TO OBTAIN PAYMENT INFORMATION SUCH AS CREDIT CARD OR BANK ACCOUNT NUMBERS OF SUSPECTED TERRORISTS, ON THE INTERNET.

Tom Ridge told US mayors meeting in Washington that the country would engage "every citizen at every level of government."

WP, 10/22/01 - 1, "Bush, Putin Schedule Talks on Missile Plans - Mike Allen

Putin defended the ABM as "an important element of stability in the world," but he reaffirmed a willingness to modify the pact in return for deep cuts in offensive nuclear weapons on both sides. "Our task is to develop parameters of such reductions and to design a reliable and verifiable method to reduce nuclear arsenals of Russia and the United States. We should look into the future and should react adequately to possible threats in the future. We are prepared to discuss that with our American partners," said Putin. The US has 7000 strategic nuclear warheads while Russia has about 6000. Bush had already promised to reduce the US stockpile to under 3,500 for each side mandated by the 1993 START II treaty.

FT, 10/22/01-7, "Old Alliances provide warmest enthusiasts for new world order" - Gerard Baker

It was the first big international political gathering since the terrorist attacks of 9/11 and for Bush it was a chance to build on the diplomatic opportunities presented by that gruesome day. Bush used the APEC meeting to hose on-one-one meetings with heads of government as well as the usual round of multilateral sessions to cement support for Washington's response. The idea was that in their shared horror at the events of September, Asian countries could put aside long-standing differences with the USwith their roots in the cold war and earlierand united to defeat with Colin Power called, "a threat that is against all civilization."

All 20 leaders expressed support and sympathy for the US and in their end-of summit- communique, condemned the "murderous" acts of September 11. It was America's long-standing cold war allies in the regionsJapan and South Koreaespecially that offered the most enthusiastic and practical support. Countries like China, Malaysia, Indonesia gave little indication that they saw promising new opportunities in the Post September 11 world order. Bush was given a Special gift by Japan's Junichiro Koizumi an ornate Japanese bow and arrow. On the wooden box that contained it, he had inscribed, "To defeat evil and bring peace on earth."

Koizumi assured Bush of his confidence that the Japanese parliament would soon authorize a change in the constitution allowing the country's armed forces to be used in combat theaters for the first time since the second world war. Mr. Kim was even more supportive and personally committed.

WP, 10/23/01, A4, "Congress Balks at Giving President Emergency Powers - Dana Milbank

Congressional negotiators balked at a WH proposal that would give the president new powers to keep the government open if Congress could not meet because of a crisis. The Bush Admin. last week suggested an emergency spending procedure that would allow a president, in consultation, with congressional leaders, to continue government operations for 30 days at existing funding levels if spending authority expires during a time of crisis when Congress cannot convene. The WH dropped the proposal when congressional and administration aides could not agree on the structure of such a mechanism. Rep. Obey said the WH had sought to give the president power to extend government operations for 30 days if the president had the permission of the speaker of the house in this case. Obey said, aids to the President talked about such a plan with congressional aides but the Bush proposal 'was very different from what had been discussed on the phone,". He said, "On both sides of the aisle in the House, it was felt that was too far-reaching." While scholars say it would be controversial, if not unconstitutional for Congress to delegate its purse-strings authority to the President, , Amy Call, a spokeswoman for the WH OMB said the emergency provision would only be activated when congressional leaders gave their approval.

USAToday, 10/26-28/01, 1 - "Police to use new powers" - Steve Sternberg

Scientists confirmed Thursday that the anthrax used in the attacks was highly processed, potent and pure. A public health official said, "There's very little doubt that this is the work of a very sophisticated government operation".

AG Ashcroft plans to use the counter-terrorism bill the President is scheduled to sign today to launch an immediate nationwide crackdown on suspected or potential terrorists, using secret wiretaps and an arsenal of tools never before available to prosecutors. "A new era in America's fight against terrorism...is about to begin" said Ashcroft. The Senate approved an unprecedented package of counter-terrorism measures that would increase the government's ability to follow and disrupt suspected terrorists but also would expand its potential to intrude on privacy. The bill had been approved by the House of Representative.

The new law will make it easy for investigators to monitor email and internet use by any person deemed "relevant" to a criminal investigation. It will also make it far easier for authorities to wire tap or carry out search warrants against suspected terrorist or their accomplices and to share that information with criminal investigators probing the September 11 terrorist attacks. Previous law prevented such sharing of information.

The bill will also permit the AG to hold non-citizen suspected of terrorist activities for 7 days without filing charges. Most of these new surveillance measure would expire after 4 years.

Investigators also hope to use the new tools to disrupt other planned terror strikes and to uncover terrorists living or working in the US who have no connection to the 9/11 attacks. Ashcroft likened such "aggressive tactics to those used by Robert Kennedy when he went after the Mafia in the 60s. Civil liberties advocates suggested that the new law would lead to a roundup of non-citizen Arabs and innocent Arab-Americans.

USAToday, 10/16/01, 11A, "Mayors seek reassurance in fight against panic" - Walter Shapiro

An emergency meeting of the US Conference of mayors was held. Ashcroft staid, "Robert Kennedy came to the Dept of Justice at a time when organized crime was threatening the very foundations of the republic...Then as now, the enemy was well financed, expertly organized and international in scope."

WP, 10/16/01, A16 - Prince Andrew Honors Giuliani with an Honorary Knighthood - Reuters

Britain's Prince Andrew announced today that NY Mayor Giuliani would be appointed an honorary knight for his "outstanding help and support" for British families who lost relatives in the WTC attacks. Meeting Giuliani at City hall on the third day of a four-day New York visit, the prince also announced other honorary titles for the city's police and fire commissioners. Giuliani was given the highest honor the British monarch can bestow on a foreign citizen. He will not be entitled to call himself Sir Rudolph but will be able to include the letter KBE after his name. Police Commissioner Bernard Kerik and Fire Commissioner Thomas van Essen have been appointed honorary commanders of the Most Excellent Order of the British Empire. Other citizens who have received an honorary knighthood include former president George Bush and Ronald Reagan and Secretary of State Colin L. Powell.

WP, 1, 10/16/01, 'Doctrine' Awaits Definition' - Karen DeYoung

The world president Bush has described since 9/11 is divided between good and evil and back and white. "Either you are with us or you are with the terrorists" said Bush. This is the essence of what the president now calls the Bush Doctrine. Asked to define it further, a senior WH official said, "We must eliminate the scourge of international terrorism. In order to do that, we need not only to eliminate the terrorists and their networks, but also those who harbor them."

The use of the word, "doctrine" is intentional. It is meant to describe a new paradigm in U.S. foreign policy, a guiding principle through which other issues will be viewed and acted upon throughout the Bush presidency and beyond.

WP, 10/16/01, A10 - An Old Alliance is Reborn Amid New Threats, Common Aims, - Dana Milbank/T.R. Reid

On Sept. 11 the phone range in the office of Sir Christoper Meyer, the British ambassador to Washington. It was from the W.H. Situation Room where national security advisers were struggling to grasp the scale of the terrorist strikes that had been launched on the U.S. So began an intense choreography between the two countries in their response to the attacksa choreography including diplomatic overtures and public declarations and climaxing in the joint British-America bombing of Afghanistan beginning Oct.7. The President called Tony Blair to get his agreement. "Here's what we need" the president told Blair, listing British military assets the Americans sought. As both British and American officials describe it, the crisis created by the Attacks on NY and Washington have brought a new clarity to the British-American relationship, as both sides have rethought their highest priorities. The reborn partnership did not come out of a personal closeness between Blair and Bush, though some semblance of friendship has developed but rather in a marriage of convenience. For both leaders, the crisis has brought a new perspective. The bush administration has seen the virtues of more active cooperation in the world and intervention in the Middle East. The Blair government has been less concerned than it used to be about European differences with the United States over the Kyoto global warming accord and the AMB Treaty. What is not yet know is whether the convergence will last.

Behind the scenes, the allies are not quite as "shoulder to shoulder" as both claim. During the Persian Gulf War, it was PM Thatcher who warned President George Bush: "Don't go wobbly George." Now the roles have been somewhat reversed. The Americans have been more eager to expand the conflict to other nations and less enthusiastic about Blair's desire for "nation-building" in Afghanistan.

At Britain's initiative, U.S. and British officials agreed to present the Security Council with letters laying out the legal basis for military action in Afghanistan. But after the allies reviewed each other's letters, the Americans inserted a paragraph asserting the right to take the war beyond Afghanistan, according to a European diplomat, who was briefed by Britain's UN ambassador, Sir Jeremy Greenstock.

Two weeks later, following the attacks, Bush stood in the House chamber and led a joint session of Congress to an extended ovation for Blair, seated in the gallery with the first lady. "America has no truer friend than great Britain," said the President.

[Blair first met Bush in February at Camp David'. Following the Camp David meeting, Blair started to act as a kind of personal emissary for the new president with other European leaders. The two men met again in June for the NATO and European Union meetings and twice more in July [Bush also had lunch with the queen]. After the attack, the United States chose to deal primarily with Britain because it was the only power with the broad military assets the United States needed and the ability to deploy them quickly.

The British, for their part, interpreted the attacks as if they had been made on their land. The estimate of British deaths at the WTC is now down to about 100, it was 3 times higher a week after the attack. But that is still, as Blair says, "the greatest loss through terrorism in our entire history."

In the month since the attacks, Bush and Blair have been in contact roughly twice weekly, aides say. Intelligence, defense and national security advisers are in constant touch. Rice has conferred "very frequently" with Sir David manning, her counterpart. [While] they didn't formally split up their duties, they coordinated them.

Blair without the need to help his nation recover from the attack, traveled the globe to Moscow, Islamabad, New Delhi and Osman, using his country's relationship with Russia and various Middle Eastern states to build support for the British-American effort. The two have divided public declarations between them. Staffers say London and Washington agreed that Blair should take the initiative in talking about the need to topple the Taliban. Bush first detailed the outline of the British-American war aims in his speech to Congress on September 20 as Blair watched from the gallery.

FT, 10/19/01, 16 - A relationship recast - Gerard Baker and James Kynge

It has become axiomatic by now that the events of 9/11 have forced the administration of Bush to dismantle and reassemble its entire foreign policy framework. At the Asia Pacific Economic Co-operation forum in Shanghai, both signs have signaled willingness to make a fresh start in the world's most important bilateral relationship, following the terrorist attack in the US. Mistrust had marked early exchanges between Bush and the Chinese government. But when the world changed on 9/11, so too did US priorities. Concerns about China took second place to the war on terrorism. Mr. Jiang telephoned Bush to voice his support.

China supported a US resolution at the UN condemning the attacks and upholding America's right to self defense. Rice said this week, "The Chinese have been very helpful on the information-sharing side and we'll want to continue to talk about those efforts,". Colin Powell said relations between the two countries were not "excellent."

Even conservatives acknowledge that the war on terrorism has presented the US with both the need and the opportunity to rephrase the nature of its relations with China.

WP, 10/20/01, A1 - Attacks Imperil Postal Service's Fiscal Future - Ellen Nakashima

The U.S. Postal Service is reeling from the effects of the 9/11 terrorist attacks and ongoing anthrax scare and analysts say eroding confidence in the mail service threatens the financial viability of one of the nation's most venerable institutions. It is making everybody rethink the role of the postal Service. The problem lies with the service's odd structure, created when Congress reorganized it in 1970 as an entity financed by people who send mail, not tax revenue. It is mandated to break even over time but must argue its rate- raising case before the Postal Rate Commission, a process that often takes more than a year. A bill to overhaul the Postal Service has been drafted by Rep. John McHugh, a NY Republican.

WP, 10/20/01, 8 - "Multinational Force New focus of Talks - Karen DeYoung

The focus of talks on the future of Afghanistan has shifted from the possible deployment of a UN peacekeeping force to a US proposal to send a limited, multinational force that would provide enough security to establish an interim government. The idea of a multinational force, a "coalition of the willing" is favored by the US and Britain. [There are numerous proposals on how to police Afghanistan]. One idea is a Muslim force, another is the creation of a national Afghan peacekeeping force that would draw fighters from the various military factions. An Afghan government would be in charge with what a U.N. official called "a certain degree of [U.N.] string-pulling" behind the scenes. UN officials acknowledge that any decision will be made by the Security Council which has followed the US lead since 9/11 terrorist attacks on NY.

WP, 10/20/01, 1 - US, China Agree on Little but need to Fight Terrorism - Philip pan

President Bush and President Zemin may very little progress toward resolving any long-standing differences yet both leaders announced a new "constructive and cooperative" relationship based on their common interest in fighting terrorism. Russia and the U.S. are also aiming to redefine relations based on a common interest in counter-terrorism.

FT, 10/22/01, 1 - Summit writes its own script - Richard McGregor

If China's showy staging in Shanghai of the summit of 21 Asia-Pacific economies symbolized a new mood of confidence in the country, it was not on display last night.

FT, 10/23/01, 3, "Britain urges UN to take post-conflict leading role" - David White

Britain yesterday called on the UN to take a lead in rebuilding political institutions in Afghanistan and reaffirmed the need for a broadly based multi-ethnic government to replace the Taliban. Laying down priorities for a post-Taliban Afghanistan, Jack Straw foreign secretary said other nations had to be ready to move very quickly and to pay "huge" development costs." We know we are in a long-term expensive commitment" he said in a speech to the International institute for Strategic Studies, the London-based think tank. He said UN "blue helmets" or multinational forces might be needed to enable the UN to carry out its task.

Britain, as a leading ally of the US in the military operation in Afghanistan has been active in persuading the US administration to accept share responsibility for "nation-building" in Afghanistan after the conflict. Bush has already indicated that the US would participate alongside other countries in a UN Commitment.

Straw said the UN would need to work closely with other countries in the region including India as well as the Scounci.. The EU would also have an important role.

FT, 10/26/01, 5 "UN announces new powers to hunt down terrorists - Nancy Dunne

In the hour after Bush signs anti-terrorism legislation today, instructions will go out to US law enforcement agencies authorizing the use of sweeping new police powers to hunt down terrorists. Declaring a new era in the fight against America's enemies, Ashcroft said police would employ aggressive arrest and detention powers, "airtight surveillance" and new technologies to trace terrorists over the internet. They would also being to use new subpoena powers to obtain payment information such as credit card or bank account numbers of suspected terrorists. Ashcroft said, "The new tools for law enforcement in the war against terrorism are the products of hundreds of hours of consultation and careful consideration by the administration, by members of Congress, and by state and local officials. They are careful. They are balanced. They are long overdue improvements in our capacity to prevent terrorism."

Mr. Ridge told US mayors meeting in Washington that the country would engage "every citizen at every level of government." Intelligence gathering and information sharing capabilities between US, state and local law enforcement agencies would be strengthened in the fight against "shadow soldiers" within the country. The private sector would be drawn into the battle, with the administration"seeking input and providing the resources and flexibility to do what needs to be done to keep our nation's communities safe.

WP,10/27/01, 1 "FBI and CIA Suspect domestic extremists" - Bob Woodward and Dan Eggen

Top FBI and CIA officials believe that the anthrax attacks on Washington, NY and Florida are likely the work of one or more extremists in the US who are probably not connected to Osma bin laden's al Qaeda terrorist organization, government officials said yesterday. Senior officials also are increasingly concerned that the bio-terrorism is diverting public attention from the larger threat posed by bin laden. "Everything seems to lean toward a domestic source" one senior official said, "Nothing seems to fit with an overseas terrorist type operation." The FBI and Postal Inspection Service are considering a wide range of domestic possibilities, including associates of right wing hate groups and US residents sympathetic to the causes of Islamic extremists.

Although there is consensus at the FBI and CIA that the al Qaeda associates are planning more serious attacks, "nobody believes the anthrax scare we are going through is "the next wave of terrorism, one senior official said. Cooper and officials at the Southern Poverty Law Project, which monitors US hate groups said they have seen no evidence of a domestic group capable of launching a sophisticated anthrax attack.

WP, 10/27/01, A6 "Bush Signs into Law New Enforcement Era" - Jonathan Krim

A broad new investigative and surveillance powers aimed at helping authorities track and disrupt the operations of suspected terrorists in the U.S. "Today we take an essential step in defeating terrorism while protecting the constitutional rights of all Americans," Said Bush.

The new laws gives the government a freer hand to conduct searches, detain or deport suspects, eaves drop on Internet communication, monitor financial transactions and obtain electronic records of individuals. At the same time, it reduced the need for subpoenas, court orders or other legal checks to enable law enforcement to move more quickly. The government is moving aggressively on a number of technology fronts to more efficiently collect and evaluate information about people and their movements as they see to combat terrorism.

The Defense Department announced that it is seeking proposals from companies on an array of new surveillance products such as portable polygraph machines and systems that can see through walls at night.

The FBI will increasingly demand personal information held by banks, Internet service providers and credit bureaus. Businesses will not be allowed to tell clients that they have turned over medical, financial or other personal records to investigators. With new law enforcement powers to monitor computer use, sometimes without a warrant, Internet users will have to decided whether they want to rely on ways of encrypting their email or otherwise disguising their identities online.

With new abilities to share data between federal agencies, including CIA, law enforcement will be able to build more robust, centralized stores of intercepted information. Senator Russell Feingold, D-WI who cast the lone vote in the Senate against the legislation on Thursday said, "There have been periods in our nation's history when civil liberties have taken a back seat to what appeared at the time to be the legitimate exigencies of war" Our national consciousness still bears the stain and the scars of those events: The Alien

and Sedition acts, the suspension of habeas corpus during the Civil War, the internment of Japanese Americans, German Americans and Italian Americans during WWII, the blacklisting of supposed communist sympathizers during the McCarthy era and the surveillance and harassment of antiwar protestors, including Dr. Martin Luther King Jr."

How this law will play out has troubling elements. For example, part of the law enabling expanded monitoring or interception of on-line communications defines an eligible suspect not as a terrorist but as a "trespasser". But the definition of trespasser is murky, creating "a huge civil liberties hole." A trespasser can be anyone without authorized access to a machine or network.

NYT, 10/26/01, 1 "bush Set to Sign - "Adam Clymer

The senate passed sweeping antiterrorism legislation today - that would expand the government's ability to conduct electronic surveillance, detain immigrants without charges and penetrate money-laundering banks. It also permits officials to share grant jury information to thwart terrorism and relaxes the conditions under which judges may authorize intelligence wiretaps. The president is pleased that the Congress has acted quickly to provide additional tools in fighting the war on terrorism and he looks forward to signing the bill into law tomorrow."

The bill added the money-laundering measures after a push by Senator Sarbanes. The bill denied the administration to e power to use foreign wiretaps that would have been illegal in the U.S. It also provides that authority for expanded surveillance of computers and telephone will expire after 4 years.

USAToday, 10/30/01, 1A - "New Terrorism alert issued" - Kevin Johnson/Kathy kiely

Ashcroft announced a warning that the nation faced a possible terrorist attack and asked Americans and law enforcement to be on their highest alert. Before making the alert public, Ashcroft said he shared the information with 18,000 law enforcement agencies throughout the country. Homeland Security Director Ridge briefed the nation's governors.

USAToday, 10/30/01, 6A - Pentagon issues high-tech ID card

The pentagon began passing out the first high-tech ID cards that will eventually be in the hands of all 4 million military and civilian defense workers. The credit card-size smart " cards will allow the holder to access secure Defense Web sites, long into computers, digitally encrypt and sign e-mail, open secure doors, get cash, buy food and even check out weapons and military hardware. The card has a bar code, circuit chip and magnetic strip. It stores the person's digital picture, fingerprint and personal identification number. Officials are considering whether to encode medical data on the card. Smart cards are used in Europe, South Africa and Argentina but haven't caught on in the U.S.

FT, 10/30/01, 5, Homeland defenders aim for co-ordinated response - Chris Parkes

The wholesale realignment of the forces protecting the US from outside infiltratorsbe they bacteria, bombs or peopleadvanced yesterday with the launch of an interagency group intended to stifle the threat from any "sleeper" terrorists already in place, as well as those seeking to evade border controls to enter. The task force, established by presidential decree, marks a new direction for US immigration policy. In concert with counter-terrorism legislation that the president signed into law last week, it implies unprecedented vigilance of students and others.

The Sun, 11/2/01, 1 - "[MD] State seeks aid in event of attacks - Jeff Barker

Maryland plans to seek more than $200 million for the federal government to guard against and respond to terrorist attacks. The fund would pay for such things as enhanced airport security and new patrols along state rivers and ports. They would also help hospitals better prepare for bio-terrorism. Gov. Glendenning after meeting with about a dozen county executives and other local officials at the State Emergency Operations Center, also said he was creating regional "rapid response teams" to provide expertise at the site of emergencies. He said he was considering naming a "state Security Secretary." akin to the federal homeland security post filled by Tom Ridgeand an accompanying council to oversee readiness for terrorism. He said its not clear if the post would be cabinet level. The uncertainty reflected the haste in which the governor is trying to act to meet the developing threat.

One new item going forward immediately is the governor's plan for 6 "rapid response teams"for the state. Each unit will include a group leader, an engineer, a medical specialist, a chemical expert, a logistics person, a public safety representative and a public information officer.

The Sun, 11/2/01, 12A - "Annan says maintaining coalition is key to victory against terrorism" - Reuters

UN S-G KOFI ANNAN SAID YESTERDAY THAT TERRORISM COULD BE DEFEATED ONLY IF THE POLITICAL, DIPLOMATIC AND MILITARY ALLIANCE STITCHED TOGETHER BY WASHINGTON AFTER THE SEPTEMBER ATTACKS STAYED TOGETHER.

The Sun, 11/2/01, 12A - "WH shows a new flexibility on world treaties" - Mark Matthews

Determined to shore up world support, the WH has adopted a new flexibility toward the kind of international agreements it once disparaged. [1] As bush prepares for a summit with Putin starting Nov. 13, admin. officials are signaling a willingness to continue abiding by the 1972 Anti-Ballistic missile Treaty, at least for the time being. This would be part of a deal that would allow tests of a missile defense system which Bush has made a top priority and deep cuts in strategic nuclear weapons. [2] With public alarm mounting over anthrax attacks, the WH announced proposals yesterday to strengthen a 1972 treaty banning biological weapons. In July the Bush admin rejected a proposal for major new treaty provisions that took six years to negotiate. [3] Meanwhile US diplomats meeting in Morocco with repr. Of other nations are trying to come up with an alternative to the Kyoto pact on global warming which Bush withdraw from this year.

The Bush admin'[s new seriousness about international agreements marks a shift from its stance before the terror attacks. Said Joseph Cirincione, "it's quite a turnaround for the administration. Bush came in determined to get out of what he saw as treaty restraints. He brought a whole team of experts who wanted a break with the treaty regime. After 9/11 suddenly he needed multilateral support big time and treaties he scorned looked a lot more useful."

[1] THE CHANGED ATTITUDE TOWARD THE ABM TREATY FITS IN WITH A TRANSFORMATION IN US-RUSSIAN RELATIONS SINCE THE TERROR ATTACKS, WITH PUTIN SEIZING THE OPPORTUNITY TO ALIGN HIS COUNTRY WITH THE WEST.

THE ABM TREATY BARS DEVELOPMENT AND DEPLOYMENT OF NATIONWIDE SYSTEMS INTENDED TO BLOCK US/SOVIET BALLISTIC MISSILES. THE THEORY WAS THAT IF EITHER SIDE WERE ABLE TO PROTECT ITSELF AGAINST THE OTHER'S MISSILES, IT WOULD BE MORE TEMPTED TO LAUNCH A FIRST STRIKE. BUSH HAS CALLED THE ACCORD A RELIC OF THE COLD WAR. US officials favor each side's arsenal being cut by about 2/3s, from 6000 warheads to about 1750 to 2250.

[2] When Bush rejected a lengthy biological weapons protocol in July they would work on new proposals to strengthen the accord. The admin. called on other countr3ies to adopt a series of measures to combat bioterrorism, including new criminal laws allowing extradition of suspects, a new UN procedure for investigating suspicious outbreaks of disease, new controls over deadly organisms and a code of ethical conduct for scientists.

WP, 11/4/01, - Bush to urge nations to fight terrorism with deeds - Mike Allen

Bush plans to demand that countries act on their claims to be fighting terrorism rather than offering only rhetorical support for the war coalition. Stage 2 is about acting against terrorism. Bush's speech at the UN is the first public sign of administration efforts to strengthen the coalition before expanding the war beyond Afghanistan, amid indications that he could lose many members depending on the next target. "Either you are with us or against us" with expectations that various nations will help in military, law enforcement, intelligence and financial fronts of his war. Bush's new emphasis was foreshadowed Thursday during a briefing by national security advise Rice who said the admin. is negotiating for support from "countries that have a past, so to speakand maybe even a presentin harboring terrorism."

In Bush's radio address yesterday, he called the mailing of letters containing anthrax spores, "a second wave of terrorist attacks upon our country." That public is now international, and the admin. has begun trying to reach overseas audiences more effectivelyand counter Taliban claimsby joining with British officials to set up Coalition Information Centers, war information machines that are to run 24 hours a day in Pakistan, London and Washington. Hughes compares the flow of information in the war to a stadium full of fans doing the wave, with developments starting in Afghanistan and Pakistan and then following the sun across Europe, across the Ocean and then across North America.

THE WASHINGTON OPERATION CONSISTS OF 30 WORK STATIONS WITH FLATSCREEN COMPUTERS IN THE INDIAN TREATY ROOM OF THE EISENHOWER EXECUTIVE OFFICE BUILDING.

WP, 11/4/1, A4 - An Intelligence Giant in the Making - Jim McGee HOMELAND DEFENSE

The new anti-terrorism bill lays the foundation for a domestic intelligence-gathering system of unprecedented scale and technological prowess, according to both supporters and critics of the legislation.

Over shadowed by the public focus on new Internet surveillance and "roving wiretaps". Said Asst. Atty. General Michael Chertoff, "We are going to have to get used to a new way of thinking. What we are going to have is a FBI that combines intelligence with effective law enforcement." The new law reflects how profoundly the attacks changed the nation's thinking about the balance between domestic security and civil liberties. The bill effectively tears down legal fire walls erected 25 years ago during the Watergate era when the nation was stunned by disclosures about presidential abuses of domestic intelligence-gathering against political activists.

After wading through voluminous evidence of intelligence abuses, a committee led by Sen. Frank Church, warned that domestic intelligence-gathering was a "new form of government power" that was unconstrained by law, often abused by presidents and always included to grow. [As a result, the Church Committee instituted] segregation within the FBI of the bureau's criminal investigation function and its intelligence- gathering against foreign spies and international terrorists.

The new anti-terrorism legislation foreshadows an end to that separation by making key changes to the law underpinning it, the Foreign Intelligence Surveillance Act of 1978. Said Chertoff, "They have to divide the world into the intelligence side and law enforcement. The new law 'should be a big step forward in changing the culture." FISA allows the FBI to carry out wiretaps and searches that would otherwise be unconstitutional. Unlike regular FBI criminal wiretaps, known as Title IIIs, the goal is to gather intelligence, not evidence. In negotiating the new legislation, Bush asked for a lower standard for approvalchanging the words "primary purpose" to "a purpose." This would allow people merely suspected of working with terrorists or spies to be wiretapped.

Patrick Leahy, chairman of the Senate Judiciary Committee said, "The bill enters new and uncharted territory by breaking gown traditional barriers between law enforcement and foreign intelligence." He reluctantly "acquiesced" to the Bush administration's demands for anti-terrorism powers that could be used to violate civil liberties. Ashcroft characterized the anti-terrorism package as "tool" urgently needed to combat terrorism.

The new law also gives the CIA unprecedented access to the most powerful investigative weapon in the federal law enforcement's arsenal: the federal grand jury. Grand juries have nearly unlimited power to gather evidence in secret, including testimony, wiretap transcripts, phone records, business records or medical records. In the past, Rule 6(e) of the Rules of Federal Procedure required a court order whenever prosecutors shared federal grand jury evidence with other federal agencies.

The new law allows the FBI to give grand jury information to the CIA without a court order, as long as the information concerns foreign intelligence or international terrorism. The information can also be shared widely throughout the national security establishment. SAID MORTON HALPERIN, "AS LONG AS THE TARGETS ARE NON-AMERICANS, THEY CAN NOW SWEEP UP AND DISTRIBUTE, WITHOUT LIMITATION THE INFORMATION THEY GATHER ABOUT AMERICANS."

As a legal matter, the CIA is still prohibited from exercising domestic police powers or spying on US citizens. However, its intelligence officers will work side by side with federal agents who do have arrest and domestic investigative authority.

The new counter-terrorism powers given to Treasury agencies breach another wall of the Church reforms, which consolidated domestic intelligence-gathering inside the FBI to ensure accountability. Treasury's expanded domestic intelligence role concerns some officials.

Technology is the key to harnessing the last and largest piece of the new domestic intelligence- gathering system, the nation's 600,000 police officers and detectives. Congress has authorized in this bill a SECURE, NATIONWIDE COMMUNICATIONS SYSTEM FOR THE SHARING OF TERRORISM- RELATED INFORMATION WITH LOCAL POLICE.

BusinessWeek, 11/5/01, 83-84 - "Privacy in an Age of Terror" - Mike Francis, et al.

The war on terrorism is still in its early days but one thing is already clear: In the future, INFORMATION ABOUT YOU, WHAT YOU DO, WHERE YOU GO, WHO YOU TALK TO, AND HOW YOU SPEND YOUR MONEY IS GOING TO BE FAR MORE AVAILABLE TO GOVERNMENT, AND PERHAPS BUSINESS AS WELL. Across a wide range of battlefields, privacy is on the retreat. Many high-tech surveillance tools that were deemed too intrusive before 9/11 including the FBI's "Carnivore" Internet eavesdropping system, are being unleashed. Pre-attack legislation aimed at protecting people from unwanted privacy invasions has been shelved, while Congress is on the verge of passing an anti- terrorism law giving cops broad new powers to wiretap, monitor Internet activity, and peer into personal banks accounts. The notion of forcing citizens to carry a national identity cardonce anathema to America's open cultureis getting more serious consideration than ever in U.S. history.

Privacy involves the most fundamental issue in governance: the relationship of the individual to the state. Since the forefathers, Americans have been committed to the idea that people have the right to control how much information about their thoughts, feelings, choices, and political beliefs is disclosed. It's a matter, first and foremost, of dignitycreating a boundary that protects people from the prying eyes of the outside world. By reducing our commitment to privacy, we risk changing what it means to be Americans. To the extent that ID cards, databases, and surveillance cameras help the government track ordinary citizens, they may make people marginally less willing to exercise basic freedomsto travel, to assemble, to speak their minds.

Today the FBI's watch list of suspected terrorists hasn't even been connected to the INS or the State Department, much less the private sector. A wide variety of laws/taboos has prevented the government from hooking up its files with those of airlines, credit-card companies, and private data-collection organizations. But that's already changing: On Oct 11, INS chief James Ziglar told a Congressional committee that he is moving to link the agency's computers to the FBI's central data base of bad guys. He also wants to require air carriers to submit passenger lists to the INS to prevent suspected terrorists from boarding U.S. bound planes.

Some people, including Oracle, are recommending the creation of even broader databases. Other industry experts, all of whom stand to profit from such a plan, argue that such vast systems are already feasible. For example, Wal-Mart Stores Inc. and Kmart Corp. have databases containing over 100 terabytes of information on all their sales, inventories, and deliveries. This is 100 times larger than the IRS.

Mining Information

A key challenge will be to develop sophisticated software to sift through the databases, pinpointing likely terrorists and suspicious behavior. Software maker SYBASE INC.'S NEW MINING SOFTWARE CAN ALREADY ANALYZE UP TO 1000 VARIABLES, VASTLY INCREASING COPS' ABILITY TO FIND THE NEEDLE IN A HAYSTACK OF PERSONAL DATA.

National ID Card

More than 100 other countries have ID cards. Adding a computer chip could allow the card to be used as a combination drivers' license, cash card, national health service card, and passport. This is only the beginning of what's theoretically possible. Given the power of digital technology, criminal records, immigration data, and more could be packed onto ID cards. Once national ID cards are in place, airlines, explosives manufacturers and border-crossing guards will know exactly which John Smith they are dealing with. Once smart cards are in place, governments could require them to be swiped into electronic readers every time people shop, travel or surf the Web and could accumulate an unprecedented quantity of information on their citizens.

GPS is a different story. The technology worksand it has been rapidly spreading to new places. Before 9/11, privacy groups and some legislators had been working to limit the ability for companies to collect location data from customers surreptitiously and to raise the legal standards for enforcement officials to subpoena this material.

Law enforcers need the ability to find out with whom suspected terrorists are talking and what they are saying. That's why the government lobbied for the Anti-Terrorism Act, which gives the feds increased powers to eavesdrop on telephone calls an digital communications made through e-mail, online service providers, and digital devices. There's one major exception: FBI's Carnivore when installed on a suspect's Internet service provider; it searched through not only the suspect's Web activities but also those of people who used the same ISP. There are widespread reports that Carnivore has been unleashed with minimal

oversight.

Facial-recognition software. Data mining. National ID cards. Carnivore. For the near future, these technologies are going to be deployed as stand-alone systems, if at all. But we live in a digital age. Since all these technologies use the same techniques, so it is possible to blend them togetherjust as TVs, computers, video games, and CD players are converginginto one monster snooping technology. Linking them together makes each one exponentially more effective.

A national ID card, for example, could be used to launch a new unified database that would track everybody's daily activities. Information from Carnivore could be stored in the same place. THIS SUPER DATABASE, IN TURN, COULD BE LINKED TO FACIAL-RECOGNITION CAMERAS SO THAT AN ALL-POINTS BULLETIN COULD GO OUT FOR A POTENTIAL TERRORIST THE SECOND THE DATA-MINING PROGRAM DETECTED A SUSPICIOUS PATTERN OR PRODUCT. ALREADY RESEARCHERS ARE WORKING ON SATELLITES THAT CAN READ THE UNIQUE COLOR spectrums emitted by people's skin and cameras that can tell whether people are lying or how frequently the blink. Left unchecked, technologists could eventually create a nearly transparent society, says David. J. Farber. "All the technology is there. There is absolutely nothing to stop that scenarioexcept law," according to Farber.

WP, 11/7/01, 1 - Terror attacks may have lasting effect on courts - Joan Biskupic

New concerns for national security and personal safety, legal experts say, could inspire a fundamental shift in the law and the way it is applied by judges and juries. Just as the Depression opened the door for increased government regulation in the 1930s and just as images of African-Americans being beaten and sprayed with fire hoses in the 1960s gave life to civil-rights laws, the still-vivid images of 9/11 could become enduring symbols for homeland defense. Said Stanford University law professor Pamela Karlan, "If this all turns out to have a profound societal effect, it will have a profound effect on the law. Some analysts speculate that judges, juries and lawmakers are apt to be more lenient in allowing authorities to conduct searches, crack down on illegal immigrants and generally deal more harshly with those who cause disorder. Congress has passed legislation which expands the U.S. government's ability to monitor suspected terrorists' phone conversations and Internet use. It also makes it easier to detain immigrants suspected of terrorism.

In the 1930s Roosevelt's New Deal "put a huge amount of pressure on the Supreme court. Constitutional law doctrine ultimately underwent a major transformation that gave the U.S. government more control over commerce and helped to usher the nation out of the Depression," said Yale law professor Paul Gewritz.

WP, 11/8/01, A19 - Italy Votes to Send Troops to Afghanistan -Daniel Williams

Italy voted to go to war, confirming its pledge to supply an aircraft carrier and up to 2700 troops to the US led campaign in Afghanistan. Just as war transformed Bush's presidency, so it appears that it is transforming Berlusconiand perhaps his country. Italy is the 5^th European country to commit military forces to the US led coalition. Others include Britain, Germany France, and in more general terms, Spain. France and Britain have put small armed units on the ground and the British Navy has fired cruise missiles at Afghanistan.

Having disastrously allied itself with Hitler in WWII, Italy had been reluctant to take up more than the most marginal of military missions abroad since then. Defense Minister Antonio Martino advised Parliament that "no one should delude themselves into thinking that the war against terrorism would be brief, painless and limited. We must be aware that this is a struggle of civilization against barbarity." The war allows Berlusconi to leave behind political squabbles over charges of corruption, financial conflicts of interest and unfulfilled promises to lower taxes.

On Saturday, Berlusconi will sponsor a pro-American solidarity march in Rome. Saturday's "USA Day" will have the American flag flying alongside the Italian and European flag.

WP, 11/8/01, 1 - Intelligence Shakeup Would Boost CIA" - Walter Pincus

FOREIGN INTELLIGENCE ADVISORY BOARD - NEED COPY OF THEIR REPORT - CALL HOUSE INTELLIGENCE COMMITTEE.

A high level presidential commission plans to recommend that the Pentagon's three largest intelligence- collection agencies be transferred to the direction of central intelligence in a major restructuring of the intelligence community, according to sources familiar with the panel's findings. Under the proposal, the National Reconnaissance Office, which develops, builds and manages intelligence satellite systems, the National Imagery and mapping Agency, which handles imagery intelligence systems and mapping, and the National Security Agency, which is responsible for electronic intercepts, would each come under the control of the CIA director. The proposal will be delivered to Bush this month and would constitute the largest overhaul of the U.S. intelligence community in decades and is aimed at helping consolidate programs and reducing rivalries within a massive intelligence-collection bureaucracy that involves 12 separate agencies. The panel is chaired by retired Lt. Gen. Brent Scrowcroft, the new chairman of the President's Foreign Intelligence Advisory Board. Bush created the panel in may when he charged CIA Director Tenent with conducting a comprehensive review of the intelligence system. The panel was asked to produce plans for a reorganization of the system to meet the challenges of new threats and technologies. Scrowcroft served as national security adviser for Presidents George H.W. Bush and Gerald R. Ford.

The House and Senate intelligence committees, which have been pushing for greater authority for the CIA director over intelligence-collection operations, are expected to support the plan. All three Pentagon intelligence agencies, which are multibillion-dollar bureaucracies, have their own clout within the government, have traditionally been under the direction of the secretary of defense and are usually headed by uniformed officers. These agencies, whose budgets are classified, account for almost half of the $30B spent by the government on intelligence each year and dwarf the CIA's budget of $3.5B, according to congressional intelligence sources.

Under Scrowcroft's panel's plan, the Pentagon would still control intelligence operations that are carried out under the military services' budgets. They include tactical reconnaissance and target acquisition programs that provide direct information support to military operations. THE PENTAGON WOULD CEDE TO THE DIRECTOR OF THE CIA EFFECTIVE CONTROL OVER ITS THREE LARGEST INTELLIGENCE OPERATIONS, THE MOST SOPHISTICATED AND FAR-REACHING INTELLIGENCE-GATHERING NETWORKS DEPLOYED BY THE U.S. GOVERNMENT AROUND THE WORLD.

In recent years, the National Reconnaissance Office's financial management and its flexibility in developing new satellites have drawn criticism. The National Imagery and mapping Agency, which was created during the Clinton Administration, has had difficulty integrating its missions of imagery collection and analysis and mapping for the armed services. The NSA has been criticized for failing to keep pace with advances in electronic communications.

WP, 11/9/01, A12 - House Panel Allocates $1.67B for Pentagon Counterterrorism Bid - Dan Morgan

In the first attempt by Congress to adjust the defense budget to new security threats, a key House committee has added $1.67B for Pentagon counter-terrorism efforts, including $50 million to test equipment that could detect small, smuggled nuclear devices. But scientists and congressional officials said this week that they have never been brought together in a way that would enable local law enforcement agencies to ferret out suit-case-size weapons smuggled into U.S. ports or past border guards.

The broader test of the equipment is ordered in a new counter-terrorism title added to a $317.4 billion defense appropriations bill for 2002 that could reach the House floor next week. The bulk of the funds in the new counter-terrorism account $7.8Bstill go to Bush's top priority of ballistic missile defense, a priority that could run into criticism as the defense measure works its way through Congress.

Repr. John Murtha (D-PA), ranking member on the defense appropriations subcommittee, this week stressed the need to beef up funding of human intelligence gathering and training and organizing state National Guard units within the national effort.

WP, 11/8/01, A10 - "India Adopts Measures to Counter Terrorism" - Rama Lakshmi

In the weeks since the 9/11 terrorist attacks on the US, India's government has launched a verbal/legal assault on what it calls the mounting threat of terrorism. The most controversial measure, the Prevention of Terrorism ordinance, grants broad new powers to the police to tap phones, monitor Internet traffic and detain members of groups deemed to be terrorist. Under temporary emergency measures journalists may be required to disclose information about a terrorist group and its activities; those refusing to do so could face prison terms of up to three years. Human rights activists and groups representing India's 140 million Muslims say they fear that India's governing Hindu-nationalist coalition could use the laws to harass minorities.

11/8/01 - US officials Reorganize Strategy on Bioterrorism - Ceci Connolly CREATE THE PROBLEM

Federal health officials have begun re-organizing their approach to fighting bio-terrorism. HHS has hired three veteran bio-terrorism experts to run a new Office of Preparedness, instituted a daily conference call to coordinate his agency chiefs, appointed a liaison to the WH Office of Homeland Security and elevated a well-known infectious disease expert to a more prominent public role.

While Thompson has publicly defended the department's handling of the anthrax attacks, several close advisers say the changes are a recognition that five weeks into the anthrax crisis, the nation's health system is still struggling to cope with the investigative and public relations demands of what is thus far a small-scale biological assault.

WP, 11/9/01, 10A - "Islamic Group Blocks Terror Treaty" - Colum lynch

As association of Islamic governments blocked agreement on a UN treaty designed to combat international terrorism, demanding that anti-Israeli militants be exempted from the pact's provisions. The 57 member Organization of the Islamic Conference demanded an exemption for what it calls "national liberation movements"which would include Palestinian militants fighting Israel. The General Assembly has been struggling for more than a year to forge a comprehensive anti-terrorism treaty. Advocates say it would fill gaps in a series of previous agreements, which have imposed narrow prohibitions on specifics acts such as hijackings. The current draft treaty would broaden the scope of a terrorist act to include violent attacks against private property or public infrastructure with the intent of undermining a country's economy, intimidating a population or forcing a nation or international organization to reverse its course of action. It would define a terrorist as any person who "unlawfully and intentionally causes a death" with such intent. The dispute boils down to this: "ONE COUNTRY'S TERRORIST IS ANOTHER COUNTRY'S FREEDOM FIGHTER", SAID A UN official.

WP, 11/10/01, A20 - Muslim Money Moves Without Trace - Rajiv Chandrasekaran

In Pakistan the traditional money-transferring system known as HAWALA shifts billions of dollars across the globe every year. Throughout the Muslim world, HAWALA networks are a cornerstone of the financial system. In a land where most ordinary people do not have bank accounts, hawala is regarded as the safest and most efficient way to send a few hundred rupees to a remote village or receive a few hundred dollars from a relative who drives a taxi in New York.

The Hawala system, which began long before the advent of Western banking in the region, makes eliminating itor even regulating itnearly impossible. Although it is technically illegal here and in most other nations, such as $5B a year is estimated to flow through the Pakistan's hawala networks each year, more than the combined value of all bank wire transfers. There is no records whatsoever and no paper trails. Like their counterparts in the U.S. and elsewhere in the world, some discreetly ply their trade in convenience stores, import-export- shops and other businesses.

The global scrutiny of the hawala business prompted by the 9/11 terror attacks in the U.S. has flashed back here with the speed of a hawala transaction. Most money changers refused to talk about the system with a foreign visitor.

This is how a hawala starts: When a client wants to send money, he scribbles down the amount, the destination and a code number. The client is given the code and told to pass it along to the person who wants to claim the money along with the location of the hawala dealer at the other end. "It could be just a small shop that looks like it's selling tea, but it is not. It is really a hawala business. The person receiving the money must have the right code in order to claim the money.

WP, 11/11/01, 1 - At UN, bush Urges Action Against Terror - Karen DeYoung

Bush said that he expects each nation to play its full part in the anti-terrorist war. "Not every nation will be a part of every action against the enemy, but every nation in our coalition has duties." Bush reminded the UN General Assembly that Osma bin Laden last week threatened the United Nations and "called our secretary general a criminal and condemned all Arab nations here as traitors to Islam", he said that "as we meet, the terrorists are planning more murder, perhaps in my country or in yours."

Bush signaled his intention to hold states accountable for their assistance to terrorists. "For every regime that sponsors terror, there is a price to be paid, and it will be paid. The allies of terror are equally guilty of murder and equally accountable to justice." The US is providing $1B in support to Pakistan.

Speaker after speaker condemned the attacks and said the world must stand united against such actions. Bush said all UN members are obligated under the Security Council resolution passed on September 28 to crack down on terrorist financing and deny terrorists safe haven, sanctuary or transit, "to share intelligence and coordinate the efforts of law enforcement."

WP, 11/11/01 A19, "Excerpts from President Bush's speech: - HIS SPEECH IS AN OUTLINE OF THE WORLD GOVERNMENT AGENDA:

"We will defend ourselves and our future against terror and lawless violence. The United Nations was founded in this cause [is this the real reason? What happened to peace?]

The suffering of September 11 was inflicted on people of many faiths and many nations. [We are one. Inter-faith and multi-raciallike the Tower of Babelwas the World Trade Center a modern Tower of Babel?] All of the victims were killed with equal indifference and equal satisfaction by the terrorist leaders. The terrorists are violating the tenets of every religion. [There is no difference between religions.]

As we meet, the terrorists are planning more murder, perhaps in my country or in yours. They seek to overthrow governments and destabilize entire regions... [Can you imagine in a world in which the US is the most powerful and already has a maze of 13 intelligence agencies, that we did not know?]

Some nations want to play their part in the fight against terror but tell us they lack the means to enforce their laws and control their borders. We stand ready to help. [Transfer of wealth]

For every regime that sponsors terror, there is a price to be paid, and it will be paid. [How are they funded? Where do they get their money? Is it a war on terror or a war on those who oppose world government?] The allies of terror are equally guilty of murder and equally accountable to justice. America will join the world in helping the people of Afghanistan rebuild their country. [Transfer of wealth]

The most basic obligations in this new conflict have already been defined by the UN. On September 28^th the Security Council adopted Resolution 1373. Its requirements are clear. Every UN member has a responsibility to crack down on terrorist financing....We have a responsibility to share intelligence and coordinate the efforts of law enforcement. If you know something, tell us. If we know something, we'll tell you. And when we find the terrorists, we must work together to bring them to justice.... [The superiority of the UN as the umbrella of world government and the need to tear down the last remaining borders between countrieslegal and judicial in order to pave the way for the International Criminal Court which the US was adamantly opposed toso who financed the terrorists in order to get America to go along?]

These obligations are urgent and they are BINDING on every nation with a place in this chamber. [Reallyeverything the UN does supercedes national law?]

Yet, even beyond Resolution 1373, more is required and more is expected of our coalition against terror.

We must press on with our agenda for peace and prosperity in every land. My country has pledged to encouraging development and expanding trade. My country has pledged in investing in education and combating AIDS and other infectious diseases around the world. [This is the UN Agenda of transfer of wealth]

THIS STRUGGLE IS A DEFINING MOMENT FOR THE UNITED NATIONS ITSELF. [This is the re-birth of the UN]

The steps I've described will not be easy. For all nations, they will require effort. For some nations, they will require great courage. Yet, the cost of inaction is far greater. [Go along to get alongMafia style] The only alternative to victory is a nightmare world where every city is a potential killing field." End of Bush Quotes

WP, 11/15/01, 1, '142 Nations Reach Pact on Trade Negotiations" - Paul Blustein

Determined to show solidarity in a time of war and recession, officials from 142 countries in the WTO agreed on a plan for three years of negotiations aimed at lowering barriers to commerce worldwide. Pascal Lamy, the EU trade commission said, "September 11 focused all our minds," he said, as did "the gloomy economic landscape." The accord commits the WTO's member nations to negotiate agreements by January 1 2005 to lower tariffs, eliminate agricultural export subsidies and establish rules concerning the relationship between trade and the environment, among other things. It took eight years to finish the Uruguay Round which was the last round of global trade negotiations.

11/16/01 - Testimony-ACLU - Katie Corrigan - National ID Card System before House Committee of Government Reform

We ask Congress to use a three-prong analysis to promote safety and to reduce the likelihood that new security measures would violate civil liberties. First any new security proposals must be genuinely effective, rather than creating a false sense of security. Second, security measures should be implemented in a non-discriminatory manner. Individuals should not be subjected to intrusive searches or questioning based on race, ethnic origin or religion. If a security measure is determined to be genuinely effective, the government should work to ensure that its implementation minimizes its cost to our fundamental freedoms, including rights to due process, privacy and equality. A national identification card does not pass these tests. NATIONAL ID CARD OR SYSTEM WOULD BE AN INEFFECTIVE COUNTER-TERRORISM MEASURE AND WOULD SERIOUSLY UNDERMINE BASIC LIBERTIES. FIRST, NATIONAL ID CARDS WOULD CREATE A FALSE SENSE OF SECURITY AND DIVERT VALUABLE RESOURCES FORM OTHER MORE EFFECTIVE COUNTER-TERRORISM EFFORTS. Unfortunately, none of the proposed identification systems would effectively sort out the "good" from the "bad." First, an identification card simply confirms that you are who you say you are. It does not establish motive or intent to attack a plane. All 19 of the 9/11 hijackers had social security numbers, although not all of them were legitimate. Second, an identify card is only as good as the information that establishes an individual's identity in the first place. It does not make sense to build a national identification system on a faulty foundation, particularly when possession of an ID card would give you a free pass to avoid heightened security measures. No form of documentation is completely foolproof. SECOND, NATIONAL ID CARDS WOULD PROVIDE A NEW TOOL FOR RACIAL AND ETHNIC PROFILING AND LEAD TO MORE ILLEGAL DISCRIMINATION, NOT LESS. THIRD, MASSIVE DATABASES OF INFORMATION ARE A DIRECT THREAT TO THE PRIVACY OF AVERAGE AMERICANS AND THE BASIC FREEDOM TO MOVE FREELY AROUND OUR NEIGHBORHOODS AND TOWNS. A national ID card would set up the infrastructure for a surveillance society. Day to day, individuals could be asked for ID when they are walking down the street, applying for a job or health insurance, or entering a building. FINALLY, NATIONAL ID PROPOSALS ASK AMERICANS TO TRUST THAT A MASSIVE IDENTIFICATION BUREAUCRACY WOULD FACILITATE OUR WAY OF LIFE RATHER THAN UNDERMINE THE FREEDOMS WE TAKE FOR GRANTED.

WP, 11/18/01, A5 - Ridge Defends His Role as 'Coordinator'" - Eric Plantin, David Broder

Thought [Ridge] was handpicked by a wartime president and given the broadest mandate possible to help in the recovery and to defend the nation against further acts of terrorism, Ridge is groping his way in a critical new office that is heavy on responsibility but light on line authority and budget clout. A number of government veterans such as retired Gen. Barry McCaffrey, director of national drug control policy in the Clinton administration, argue that Ridge has gotten to be given the necessary mechanisms to handle the job which will include consolidating government agencies under Homeland Defense. Since he was sworn in as homeland director on October 8 (18).

Ridge coaxed Atty. General John Ashcroft to announce plans to create a national terrorist tracking system that would consolidate federal intelligence capabilities. Because Ridge is technically responsible for coordinating law enforcement and intelligence operations, Ridge has had to shoulder some of the blame for the government's failure to uncover the source of anthrax spores in the mail or to track down the accomplices to the 9/11 terrorist attacks against the WTC and the pentagon. Ridge was given responsibility for coordinating nearly 50 federal agencies and departments, overseeing everything from the interaction between the FBI and the CIA on intelligence to working with governors, mayors, and state agencies to prepare for potential attacks.

Some lawmakers, mayors, governors and police have complained about the two FBI national alerts that never materialized Ridge said last week that officials are reviewing proposals for the creation of a more sophisticated federal systemmodeled after a military intelligence network that would call for different levels of response, depending on the quality of the warnings. He noted they are also studying plans for alerting state and local law enforcement agencies and officials about the possibility of a terrorist attack without making a public announcement.

WP, 11/19/01, A12 - "In congress, 'an unprecedented reaction'" - Helen Dewar

After years of noisy and often bitter fights over military deployments in foreign lands, Congress has responded with uncharacteristic acquiescence to President Bush's decision to go to war in Afghanistan and his strategy for winning it. Congress has responded to war effort with bipartisan solidarity not seen for decadesperhaps not since the Japanese attack on Pearl Harbor 60 years ago. Said Henry J. Hyde, R-L, "It has been an unprecedented reaction to an unprecedented event."

The attacks not only silenced criticism of the Bush handling of foreign policy by democrats, but led Bush to rally allies into a coalition against terrorism and do other things that pleased the democrats. "He'd talked about not getting into nation building and now he's into it. He had been reluctant about the UN and now he goes to the UN for help. He wanted to stand off from the Middle East, but now he's focused new energies on it, and he's reaching out more to Russia and China," said former Congressman Lee Hamilton, now director of the Woodrow Wilson International Center for Scholars.

WP, 11/19/01, 1 - States Weighing Laws to Fight Bioterrorism - Justin Gillis

Spurred by fears of bioterrorism, state legislators across the country are pushing new laws that would permit large-scale quarantine, forcible seizure of hospitals and other businesses, mandatory vaccination or treatment, and destruction of contaminated property without the owners' consent.

The state lawmakers are basing their efforts on a model law drawn up in Washington and backed by the Bush administration. As preparation for an attack using smallpox or other germ weapons, the lawmakers want to replace existing public-health statutes with a sweeping, detailed enumeration of state emergency powers. Some variation of the measure is likely to be considered in VIRTUALLY every state next year, forcing lawmakers to grapple with the right balance between civil liberties and emergency powers in a new age of biological terrorism.

the laws, which haven't been put to a SEVERE test in the modern era of constitutional rights don't provide for steps like property destruction or requisition of medical facilities and supplies. In many states, the laws prohibit private businesses like pharmacies, which might be first to pick up on a bio-terrorist attack from sharing information with health authorities, and they prohibit the health authorities from sharing information with the state police.

The model law would alter that, replace the old statutes with 40 pages of legal code detailing powers and standards, as well as requirements for information-sharing. The powers would be accompanied by broad procedural safeguards, including a requirement that authorities -present evidence and obtain court orders before instituting most mandatory measures, such as quarantine. Owners whose property was seized would be entitled to compensation. People who refused to comply with the emergency measures would be subject to criminal penalties and the measures could be enforced at gunpoint if necessary, by state police or the National Guard.

Backers say the powers, though extraordinary, would be used only in an emergency that threatened the lives of large numbers of Americans. The scenario they cite most often is an outbreak of smallpox which would sweep across the world and hill a third of the people it affected. There is talk of adding nuclear and chemical attack as events that would trigger the emergency powers. The basic idea has won approval from HHS. It's being developed with input from state attorneys general, governors and other groups.

Primary author of the proposed legislation Larry Gostin has had his draft already introduced as legislation in Illinois and Nevada with Massachusetts agreeing to introduce it. Gostin drafted his model law during the anthrax scare at the explicit request of the Centers for Disease Control and Prevention. It went out to states in last October. Gostin's law would give states new rights to monitor personal information in their attempt to track public health. Once an attack occurred, a governor could declare an emergency and invoke the powers in the law. Health authorities could seize or ration medical supplies, seize any hospital or other facility needed to contain the outbreak, decontaminate or destroy any building posing a threat, seize and destroy corpses, impose quarantine measures, and force people to undergo medical examination, vaccination or treatment.

11/20/01 - PRESS RELEASE- ACLU - regarding Fresno Airport and Facial Recognition Technology

In a letter to Charles Hayes, Director of Transportation, Airport Admin, City of Fresno, the ACLU asked the city to reconsider their position to install a facial recognition system. They wrote, "Because the facial recognition is a highly privacy-invasive technology, we believe its efficacy needs to be considered extremely carefully before it is deployed, whether on a trial or permanent basis." Furthermore they state that, "facial recognition schemes are of little use without a photographic database of suspects." They point out that Timothy mcVeigh did not have a criminal record. Furthermore, "independent experts agree, as the NIST study demonstrated, that facial recognition systems have trouble recognizing the effects of aging, and that changing hair or beard style or wearing glasses can fool systems. Differences in lighting and camera angles, as well as the fact that individuals are not posing for photos are all known to further increase the inaccuracies of facial recognition systems. Several government agencies have abandoned facial recognition systems after findi