Saudi aid to Hamas raises eyebrows

RIYADH, Saudi Arabia -- Nearly a year ago, Khalid Mishaal, a senior leader of Hamas, the militant Palestinian organization, attended a charitable fund-raising conference here where he talked at length with Crown Prince Abdullah, the de facto Saudi ruler.

According to a summary of the meeting written by a Hamas official, Mishaal and other Hamas representatives thanked their Saudi hosts for continuing "to send aid to the people through the civilian and popular channels, despite all the American pressures exerted on them."

On Tuesday Mishaal, who was recently added to the U.S. Treasury Department list of what it calls terrorist financiers, is now in control of a wing of Hamas that advocates continued violent confrontation with Israel, including suicide bombings.

As relations between the Israelis and Palestinians continue to deteriorate, in no small part because of recent Hamas-sponsored suicide bombings, Saudi Arabia has come under fresh scrutiny by American and European investigators here and in Israel for its political and financial support of the group.

At least 50 percent of Hamas' current operating budget of about $10 million a year comes from people in Saudi Arabia, according to estimates by American law enforcement officials, American diplomats in the Middle East and Israeli officials. After the attacks on Sept. 11, 2001, the Saudi portion of Hamas funding grew larger as donations from the United States, Europe and other Persian Gulf countries dried up, American officials and terrorism analysts said.

The estimated donations coming from Saudi Arabia -- about $5 million a year -- are a significant sum for Hamas but a very small portion of the hundreds of millions of dollars that flow into Saudi charities each year, officials said. Nearly all the donations are given in cash, making it extremely difficult for Saudi and American authorities to track the money through the banking system.

Saudi officials say their government's support for Palestinian causes goes solely to the Palestinian Authority, about $80 million to $100 million a year.

Prince Saud al-Faisal, the Saudi foreign minister, has denied that his government has financially supported Hamas or other charities that serve as front organizations for Hamas. Al-Faisal has said that the government aids the Palestinian Authority because it is "the sole representative of the Palestinian people."

Meanwhile, U.S. Treasury Secretary John Snow on Wednesday said Saudi Arabia is a strong partner in the fight against terror and that "significant progress" has been made in halting the cash flow to terrorists.

"I've got an absolute sense (from the Saudis) that there are no holds barred in going after the money and the terrorists," Snow told reporters after meeting with Crown Prince Abdullah and other top officials in Riyadh.

"Their close oversight of charities to guard against money laundering and terrorist financing sets an example to all countries engaged in the war against terror," he said. "The Saudis have been a strong partner in this essential matter."

The Bush administration has praised the Saudis for working to stop charitable donations from going to terror groups.

"We've been working with the Saudis under a U.S.-Saudi joint working group on terrorism that was created in 2002," State Department spokesman Richard Boucher said. "That has proven to be a solid mechanism for doing this work together with the Saudi government. We would note that they passed an anti-money laundering law in August. That was a very positive step."

But many members of Congress have been highly critical of the Saudis for what they call a lack of cooperation in trying to clamp down on terror financing. Several congressional committees are investigating what they call Saudi links to terror financing.

Asked whether American investigators are given access to interview Saudi suspects, Snow said: "The answer is yes."

"There can be no doubt about Saudi commitment" to the task force, Snow said.

The prince said there was a need for a global response to terror that must be fought with "all the resources, commitments and intensity the terrorists bring to the war," Snow said. "We were encouraged by this commitment."

Contributing: Associated Press

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