Following FBI raids on dozens of jewelry stores across the US, it seems an appropriate time to share an article on Blood Diamonds, which is this weeks feature. In addition, News Highlights keeps track of all the active stories, even those that began twenty years ago like the Red Army hijacking of a Japanese airline in 1970, and the effort of the remaining hijackers to leave North Korea and return home.

Look for the latest additions to the Commercial Content section and information on the subscription services.

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As always, this edition of the Newsletter is linked to selected data from the TerrorismCentral Library.

CONTENTS:

NEWS HIGHLIGHTS OF THE WEEK:

1. Africa
2. Americas
3. Asia Pacific
4. Europe
5. Middle East
6. South Asia
7. Cyberterrorism and Information Warfare
8. Finance
9. Human Rights
10 Law and Legal Issues
11. Narco-terrorism
12. Transportation
13. Weapons of Mass Destruction
14. Recently Published

FEATURE ARTICLE:
Blood Diamonds

NEWS HIGHLIGHTS OF THE WEEK

1. Africa

A million and a half Angolans face starvation as aid workers struggle with security and logistics problems, including land mines, that interfere with delivering aid. Those in demobilization camps after peace with UNITA are most at risk. Meanwhile, the Angolan government has ratified the Ottawa Convention that prohibits anti-personnel mines.

The rebel National Liberation Forces (FNL) and Forces for the Defense of Democracy (FDD) in Burundi has stepped up attacks after recent electoral setbacks. Burundi officials believe that Tanzania provides support to the rebel groups. Next week, Tanzania plans to hold a peace conference to develop a ceasefire among the rebel groups.

DR Congo genocide case against Rwanda is proceeding at the International Court of Justice, while 20,000 Rwandan troops are still within DRC. Rwanda claims the troops must remain to protect its security, while DRC believes they are providing aid to Hutu rebel militias.

The ruling Ivorian Popular Front (FPI) has won the local elections amid widespread problems with low turnout, voter exclusion, and ethnic unrest. But there was no repetition of the violence seen in the last presidential elections.

Since June 23, Liberia has held the editor of a leading opposition newspaper and two other men incommunicado under allegations of being members of the Liberians United for Reconciliation and Democracy (LURD) rebel movement.

Former Madagascan president Didier Ratsiraka is now in France but says he could return to contest new elections. The new African Union (AU) says that Madagascar cannot take its seat until new elections are held.

Moroccan troops numbering a dozen or so have occupied Parsley Island (Isla del Perejil to Spain; Leila to Morocco), one of three in the small Chafarinas group that is also claimed by Spain. Spain has sent warships and the EU has joined Spain in requesting the withdrawal of the Moroccan force. Morocco claims the troops were sent to combat drug trafficking and illegal immigration.

Sharia law still grows in Nigeria, despite being declared unconstitutional. Another case of stoning for adultery is on appeal. A man has asked for the death penalty because he had committed blasphemy.

In a more peaceful action, 150 village women in Nigeria launched a peaceful protest against ChevronTexaco oil operations to ask for electricity and employment of their sons. Oil operations have been shut down now for a week.This is a welcome departure from the kidnappings and sabotage that have previously been used to apply economic pressure against oil companies.

The International Criminal Tribunal for Rwanda is handing some of its cases to the national courts to reduce the backlog and complete its work within the next five years.

The challenges the government of Sierra Leone face in achieving peace are daunting. Human Rights Watch has released a briefing paper on these issues. You can find it online at http://hrw.org/backgrounder/africa/sl-bck0711.htm

The United Nations has completed an assessment of the arms embargo on Somalia and has determined that enforcement failures that allow continued arming of local warlords are undermining attempts to bring stability to the country. Suppliers include Ethiopia, Eritrea, Yemen, Djibouti, Iran, Libya, Lithuania, Poland, and the United States. The report calls on the Security Council to strengthen sanctions to include financing of weapons purchases.

Sudan has agreed to lift a ban on humanitarian aid from the United Nations, allowing them to provide unrestricted food deliveries in the southern regions that have been torn apart by war.

In Uganda, the Lords Resistance Army (LRA) continues its attacks. Last week they killed one and abducted 58 from a Catholic mission and a primary school then attacked a refugee camp, burning down houses and other buildings, looting, and killing six.

Zimbabwe is deteriorating. Government activities against the opposition, students, farmers, and journalists are expanding. Food and other basic supplies are deteriorating.

2. Americas

Tens of thousands of Argentines gathered in a "day of rage" to protest the governments handling of the economic crisis.

Shortly after this, the former Argentine junta leader General Galtieri was arrested on charges of the kidnapping, torture and murder of 20 Montanero guerillas twenty years ago. Other prominent military figures were also arrested for their role in this "Dirty War". These legal measures could be a breakthrough for human rights in Argentina.

Canadas role in terrorism is the subject of a report in the Wall Street Journal, "Is Canada a Launching Pad for Terror?" in the issue of July 10, 2002. The report provides an interesting summary of research into terrorist associations that may have operations there.

Colombian rebels and paramilitary groups are operating widely, challenging both local and national government. Carlos Castano, leader of the United Self-Defense Forces of Colombia (AUC) has said they will release Richard Boulton, a very wealthy businessman kidnapped two years ago. AUC was probably responsible for last weeks murder of journalist Mario Prada. Three women and a man were briefly kidnapped by the National Liberation Army (ELN) but freed after a gun battle with security forces.

Drug-related violence in Colombia is also on the rise. The US Department of State has issued another travel warning, saying "Violence by narcotraffickers, guerillas, illegal self-defense (paramilitary) groups and other criminal elements continues to affect all parts of the country both urban and rural".

Violence from Colombia is spreading. Militants from the Revolutionary Armed Forces of Colombia (FARC) have expanded into Ecuador. An article in the New York Times of July 13, 2002, "In Ecuadors Banana Fields, Child Labor is Key to Profits" by Juan Forero, provides one illustration of practices that can encourage such militarism.

Mexican farmers are violently protesting plans to build a new airport on their farmland. They have taken a dozen hostages and a number of people have been injured in clashes with the police. Over a thousand protesters, armed with machetes and homemade bombs, have demanded the release of people arrested in a prior demonstration.

In another land movement, a thousand Peruvian peasants marched on Lima to demand limits on mining activities that are contaminating farmland and to protest land seizures.

The US Congress is taking the lead on developing the proposed Department of Homeland Security, in the absence of leadership by an executive branch distracted by persistent financial scandals. They have shifted the organization and may add a privacy officer. The Senate Foreign Relations Committee plans to investigate President Bushs plans for an invasion of Iraq, amid growing concern over a massive proposed invasion.

Evidence of the rise in the radical right that followed the September 11 attacks in the US is beginning to emerge in a series of reports and the beginning of legal proceedings. Look at Daniel Levitas data online at http://www.terroristnextdoor.com and his article "The Radical Right After 9/11" published in The Nation of July 22-29, 2002. A white supremacist trial has begun in Boston, Massachusetts, on charges of conspiracy, counterfeiting, firearms and explosives violations, and bank robbery with the goal to ignite a racial war.

A fraudulent visa scheme in the US Embassy in Qatar allowed some 71 people to obtain papers through bribery. The State Department and FBI are investigating the whereabouts and any potential terrorist links of these illegal immigrants.

In Venezuela, hundreds of thousands have demonstrated against President Hugo Chavez, in the fifth protest march since the attempted coup. Former US President Carter left without progress in the face of the opposition refusal to meet with Chavez.

3. Asia Pacific

Indonesia, Malaysia and the Philippines have signed an anti-terrorism agreement under which they can share intelligence and police operations.

A recent report prepared by the US Pentagon suggests that China is preparing for war over Taiwan and expresses concern over their naval build-up.

Chinese authorities allege that the banned Falun Gong spiritual movement was responsible for the hijacking of national satellite television signals. The movement cut into transmissions, mostly in rural areas, to send its message. They are accused of similar incidents earlier in the year.

A controversial anti-terrorism law has been passed in Hong Kong, targeting financing of terrorism. The government insists t broad definition of terrorism in order to comply with Chinese commitments to the United Nations.

Seven members of the rebel Free Aceh Movement were killed by Indonesian government forces. In face of President Sukarnoputris suggestion of imposing martial law, the local governor of Aceh has said it would be opposed by the local people and that the government should focus on peace talks.

Four Japanese Red Army guerillas involved in hijacking a plane to North Korea in 1970 have asked to talk with the Japanese government to make arrangements to return home.

North Korea and South Korea dispute over the maritime border has not eased.

The state of Terengganu in Malaysia, governed by the Parti Islam se-Malaysia, has passed a law to adopt hudud, the strict Islamic penal code.

Agus Dwirkana, associated with Jemaah Islamiah, was found guilty in the Philippines of planning a series of bombings against a number of targets in Manila and an attack on the Philippines embassy in Indonesia in December 2000.

Philippine security forces have arrested Hussain Ramos associated with Jemaah Islamiah, on charges of supplying explosives for use in a bombing plot.

Violence in the Papua New Guinea elections is growing. Two more men were hacked to death, and tribal clashes are widespread.

Tajikistan officials have increased the border guard against alleged infiltration by al Qaeda forces.

A bomb on a train and a shooting incident in Thailand are the latest incidents in increasing violence at the Malaysian border.

4. Europe

Bosnia Herzegovina observed the seventh anniversary of the Srebrenica massacre, in which 7,000 Muslim men were massacred by Bosnian Serb forces. The peacekeeping force in Bosnia has been given a reprieve through a temporary agreement reached with the US over the International Criminal Court.

France and the UK have agreed to close the Sangatte refugee camp no later than March of 2003. They have also agreed on tighter joint security measures.

During the parade for Bastille Day (July 14) French President Chirac survived an assassination attempt by a neo-Nazi.

German intelligence has reported that Osama bin Laden is alive and has reported on a number of failures by US intelligence, particularly surrounding the withholding of information.

Venice, Italy has been placed on high alert after threats by alleged al Qaeda militants against the ancient Jewish ghetto. Plots against other targets have also been uncovered. Meanwhile, in Milan, nine have been arrested on charges of providing logistics, including false papers, to the al Qaeda.

In the Netherlands, secret taping captured sermons praising suicide bombers and other violent acts. The parliament has called for a broad investigation.

Polish investigators have determined that local residents, not occupying Nazi forces, conducted the Jedwabne pogram of 1941 that killed some 1,600 Jews.

A travel ban in Russia is being defended as an anti-terrorist measure, lending fuel to liberal criticisms that the anti-terror campaign is being used as an excuse to limit civil liberties and increase paranoia.

Serbia has jailed Ivan Nikolic for war crimes in his murder of ethnic Albanians in 1999. His is the first war crimes conviction in Serbia.

Spain has moved armed forces to the disputed Chafarinas islands also claimed by Morocco, which has occupied one of the islands with about a dozen troops. The European Union has joined Spain to insist the Moroccan forces be withdrawn.

Turkey is in turmoil as ill health joins ministerial resignations and a near-mutiny within the ruling party to put pressure on Prime Minister Bulent Ecevit to resign and/or allow the formation of a new government, and/or have early elections.

Opposition by local authorities has obstructed UK government plans to move asylum seekers into rural accommodation centers.

Muslim fundamentalists in the UK are attracting attention. Islamic militants held a public meeting criticizing the US and prejudice against Muslims. Security forces are investigating allegations that thousands of militants have been trained in terrorist activities.

Widespread violence has accompanied the marching season in Northern Ireland. There has been serious rioting, clashes between police and nationalist protesters, petrol bomb attacks and varied incidents of sectarian violence. There were several injuries and arrests.

Funding to support deprived areas of Northern Ireland had been reduced during the peace process. Now, 12 million pounds will be provided to bolster twelve communities that have recently experienced sectarian violence.

After meeting with convicted Lockerbie bomber Abdelbaset Ali Mohmed al-Megrahi in his Scottish prison, former South African President Nelson Mandela is now meeting with the families of the victims. He will meet with US families later in the year.

5. Middle East

al Qaeda spokesman Abu Gaith has issued additional recordings claiming that Osama bin Laden and other leaders are planning new attacks including guerilla warfare and assassinations.

Arab foreign ministers have confirmed their support for the Saudi peace initiative, notwithstanding changes in the US position.

In Algeria, Islamic militants have killed at least five in two incidents.

Egyptian militant Islamic group Gamaa Islamiya (1997 Luxor massacre) have declared a truce.

Police in Egypt have arrested 28 alleged members of the Muslim Brotherhood. It is the oldest fundamentalist group, and has been banned since 1954.

In the Gaza Strip, Israeli forces have attacked and destroyed a building, formerly the home of slain Hamas militant Ahmed Abdel Wahab and his uncle, who is still wanted by Israel.

Prominent Iranian cleric Ayatollah Jalaluddin Taheri resigned in protest at the way the country is being run, which led to a political and popular storm followed by a press ban.

The threat of US invasion of Iraq continues, despite international concern and domestic US questioning of the policy. In London, 70 former Iraqi military officials (and Prince Hassan of Jordan) met to discuss replacement strategies. There are reports of US/UK agents in Iraq to foment opposition and build a covert campaign.

Iraq offered to resume weapons inspection talks, but the US rejected the offer. India, however, has signed a trade agreement with iraq that would particularly boost oil sales.

The Israeli government plans to try Marwan Barghouti, a prominent Palestinian leader, in a public civilian court where all the evidence would be publicized. They are charging him with planning suicide bombings. Moderate Palestinian leader Sari Nusseibehs offices were raided and closed by Israeli forces. Soldiers firing on stone throwers killed a Palestinian teenager. Measures to segregate Israeli Arabs are under way with the approval of "Jews-only" communities.

Jordan, already limiting Palestinian border crossings, has instituted bank guarantees to ensure Palestinians do not overstay their visits. Jordan is being considered as the base for a US attack on Iraq, but Jordan has denied this and insists they are opposed to an attack on Iraq.

In Lebanon, three soldiers were killed while investigating the Palestinian camp of Ain al-Helweh, home of the Osbat al-Ansar militant group and many fugitives. Lebanese Hezbollah is having discussions with Israel regarding a possible prisoner exchange.

All but one city in the West Bank has now been fully occupied by Israeli forces, keeping the residents under curfew and destroying the vestiges of the economy. It is not clear how political reforms or elections could be conducted under these conditions. Moammar Darghne was ambushed in his car and killed by Israeli forces.

6. South Asia

Investigations into the death of Afghan Vice President Hajji Abdul Qadir have continued, including the possibilities that drug lords or al Qaeda militants were responsible. The fallout from this murder pales in comparison with the resentment of the US bombing of the wedding party. The causes of that are still under investigation by both the US and Afghanistan. Despite this tragedy, the US government has rejected any suggestion Afghan authorities could veto local operations. In any case, violence by allies and enemies alike continues to threaten Afghanistans fragile peace.

Despite fears of renewed religious violence, a large Hindu festival in Gujarat was peaceful. After the festival ended, there was a procession in the town followed by violence between Muslim and Hindu mobs. Fourteen people who had planned a suicide attack against the procession were arrested. Gujarat is now under indefinite curfew.

Naga separatist leaders Muivah and Issac Chisi Swu plan to go to Delhi to negotiate a settlement between their National Socialist Council of Nagaland (NSCN) and the Indian government. All legal charges against the NSCN leaders have been dropped.

India has deported four Nepalese suspected of supporting the Maoists.

India has issues a statement strongly supporting the Sri Lankan peace process. They have also arrested three members of the MDMK party for supporting the Tamil Tigers, which is still banned.

The threat of violence between India and Pakistan over disputed Kashmir has increased again after another militant attack that killed 27 and wounded 30, mostly women and children. India has stated that Pakistan is responsible for the attack and that it is leaving all its options open. Cross-border fire continues.

Nepal has agreed to inquire into the whereabouts of missing pro-Maoist editor Sen. The government plans to increase military spending 30 percent to help combat the Maoist rebels.

Pakistans President Musharraf is being criticized for staging the political scene ahead of fall elections. His reforms are likely to insure that the army will remain in charge. These measures include a decree that effectively bans former prime ministers Nawaz Sharif and Benazir Bhutto by limiting the office of prime minister to two terms.

A land dispute between Drappakhel and Tabiwal Wazir tribes in Pakistan near the Afghan border has killed 14. A homemade grenade thrown in the northwest frontier injured 12 tourists, mostly German.

The Sri Lankan peace monitors have provided a record of ceasefire violations since the February agreement came into place. There were 270 complaints made against the Tigers and 110 against the government.

The Refugee Councils Sri Lanka Project has produced a report that reviews developments in the peace process and some of the continuing problems with it. The report is available online at http://www.gn.apc.org/brcslproject

7. Cyberterrorism and Information Warfare

In a classic theft of identity, it has been reported that the September 11 hijackers used stolen Social Security numbers to open unverified bank accounts. (James Risen "Sept. 11 Hijackers Said to Fake Data On Bank Accounts" in the New York Times, July 10, 2002)

Riptech, a managed security services company, released volume II of the Internet Security Threat Report. So far in 2002, it says the annualized rate of Internet attacks grew at 64 percent. Of these, less than one percent are elite hackers capable of extended attacks on selected targets, primarily power and energy companies that have suffered a disproportionate number of attacks this year. This trend lends credence to reports that al Qaeda and other groups may be planning massive cyberattacks against critical infrastructure targets.

Theres an interesting article about fraud on eBay in an article written by David H. Freedman, "What eBay Isnt Telling You" published in Business 2.0, August 2002.

8. Finance

Hong Kong has passed an anti-terrorism law to combat terrorist financing. It criminalizes the act of terrorist financing and gives broad powers to the government to confiscate assets and freeze funds.

In New York, the FBI has raided dozens of jewelry stores to investigate possible money laundering on behalf of al Qaeda. (See this weeks feature article.) About 75 stores were raided and computers and other materials seized. About a dozen people were arrested on immigration charges. Civil rights groups have questioned the legitimacy of these actions.

The United Nations has determined that the arms embargo in Somalia, ineffective over the ten years it has been in place, must be strengthened to include financing of weapons purchases.

Spanish Judge Baltasar Garzon has frozen Batasuna assets including bank accounts, clubs and bars. Batasuna is the political wing of the Basque separatist party ETA.

Anti-Money Laundering provisions in the US Patriot Act have proven difficult to implement. A group of ten trade organizations has requested the deadline be extended.

9. Human Rights

Amnesty International has prepared a report denouncing Palestinian suicide bombings as crimes against humanity.

Former Argentine junta leader General Galtieri and other prominent military figures were arrested on charges of the kidnapping, torture and murder of 20 Montanero guerillas twenty years ago in the "Dirty War". These legal measures could be a breakthrough for human rights in Argentina.

Trials of Indonesian officials indicted over their roles in 1999 East Timor independence vote violence are taking place. Major General Adam Damiri has just had charges read at the start of his trial. Abilio Soares, governor at the time, is nearing the end of his trial. He is the first of the 18 to complete the trial.

In a debate over the International Criminal Court (ICC), strong antagonism led to the US softening its position. In a compromise that also received widespread criticism, peacekeepers would be given immunity from the ICC for one year. (That is probably about as long as it will take the court to establish the mechanisms and infrastructure in order to operate.)

10. Law and Legal Issues

The detention of prisoners held in the US Naval base at Guantanamo Bay, Cuba, without charge or legal representation by the US, has moved to a panel of US federal judges to review charges this activity is unconstitutional.

In the sweeping arrests that followed September 11, more than 1,200 were arrested, 750 detained, and now all but 74 repatriated or released. The continued secrecy surrounding these arrests is still under attack by civil rights groups.

Major General Adam Damiri has just had charges read at the start of his trial for his role in the 1999 East Timor violence.

Leo Felton and Erica Chase, white supremacists, are on trial in Boston, Massachusetts. Charges include conspiracy, counterfeiting, firearms and explosives violations, and bank robbery. Their goal was to blow up Jewish and black landmarks to start a racial war.

Miroslav Deronjis has been arrested and transferred to the UN War Crimes Tribunal for Yugoslavia on charges of crimes against humanity for his role in killing 60 Muslim civilians in a village attack.

Generals Leopoldo Galtieri, Carlos Guillermo Suarez Mason, and Cristino Nicolaides were arrested on human rights and murder charges for actions in the "Dirty War" of the 1980s.

Yasser Esam Hamdi, an American accused of fighting with the Taliban, has lost an appeal to his claim he is entitled to a lawyer. (John Walker Lindh, discovered in the same circumstances, has had attorneys acting on his behalf since his repatriation.)

Mohammad Hanif and Mohammad Imran have been arrested in Pakistan for their alleged role in an assassination attempt against President Musharraf and for their role in the US Consulate car-bombing in June.

John Paul Gerard Hannan, a suspected Real IRA member, has been charged in London, England, with conspiring to cause an explosion, obtain an explosive substance, and carrying firearms and a grenade.

Said Kazdali and Mohammed Kazdali of Morocco received suspended sentences in Italy for forgery, last August. They have now been arrested along with seven other suspected al Qaeda logistics supporters.

Zacarias Moussaoui, accused as the "20th hijacker", is attempting to defend himself. He has submitted a number of handwritten motions (subscribers have access to this material) that are now being used to determine yet again if he is competent to continue his own defense or if these motions indicate delusional paranoia.

Ivan Nikolic is the first war crime conviction in Serbia. He was convicted for the murder of ethnic Albanians in 1999.

Hussain Ramos (a/k/a Ali Ramos, Abu Ali), associated with Jemaah Islamiah, has been arrested in the Philippines on charges of supplying explosives for use in a bombing plot.

In Sierra Leone Foday Sankohs trial is set to resume. However, the former leader of the Revolutionary United Front (RUF) has been unable to get an attorney willing to defend him who is also acceptable to the court. Without a defense attorney, any result of the trial could be questioned.

Former Yugoslav President Zoran Lilic has been arrested and sent to the war crimes tribunal to appear as a prosecution witness.

The trial of Ahmed Omar Saeed Sheikh and others accused of the kidnapping and murder of Daniel Pearl has ended. Saeed Sheikh has been sentenced to death; the other four to life in prison. The sentences are being appealed.

Rasmi Subhi Salah al-Shannaq shared an apartment with four others, including two of the September 11 hijackers. Federal authorities are investigating links among the men, but a federal judge has ruled that merely being in their company was not enough to jsutify denying al-Shannaq bail.

Abilio Soares, governor during the 1999 East Timor independence vote violence, will be the first of 18 accused officials to reach the end of his trial.

Radovan Stankovic, charged with war crimes for his involvement in a campaign of raping Muslim women, refuses the authority of the International War Crimes Tribunal for Yugoslavia and will not enter a plea.

11. Narco-Terrorism

The Christian Science Monitor reports on cooperation between the US and Mexico in an article published July 9, 2002, by Gretchen Peters, entitled "US, Mexico finally drug-war allies: President Vicente Foxs unprecedented cooperation with the US yields big blows to Latin narcrotraffickers [sic]."

Border guards at the Afghan/Tajik border have captured 215 kilos of heroin and killed four traffickers in a gun battle.

Aerial spraying of drug crops in Colombia is required to meet the same health and safety standards as in the US, putting at risk the anti-drug effort (but perhaps protecting the people living there.) See Christopher Marquis article "U.S. Law Imperils Colombia Coca Spraying" in The New York Times, July 11, 2002

12. Transportation

US maritime container security efforts are underway in Rotterdam, Antwerp and Le Havre. Felixstowe will follow soon, and possibly other British ports. Each of these ports has US customs agents stationed there to prescreen cargo.

The US House of Representatives has passed a bill to arm certain airline pilots. The bill, opposed by the White House, is likely to be opposed in the Senate.

An innovative proposal to train lobster fisherman from the US state of Maine to help patrol coastal waters in cooperation with the Coast Guard has foundered on other federal regulations, primarily around requirements for background checks and privacy rules.

13. Weapons of Mass Destruction

US Secretary of State Colin Powell has called for ratification of the weapons reduction treaty with Russia. In his testimony, he was asked why weapons were not being destroyed and whether they could find their way to the hands of terrorists.

The US Senate has passed a law to make Yucca Mountain in Nevada a nuclear repository. The decision will be appealed in court by the state.

Researchers at the University of New York at Stony Brook, US, have assembled the first synthetic virus. They used public sources to construct the genetic sequence of polio. This experiment opens the door to new potential for biological weapons.

14. Recently Published

Ali, Tariq. The Clash of Fundamentalisms: Crusades, Jihads and Modernity. Verso

Bobbitt, Philip. The Shield of Achilles: War, Peace, and the Course of History. Knopf

Chipello, Christopher J. and Dan Bilefsky, "Is Canada a Launching Pad for Terror?" Wall Street Journal, July 10, 2002

Forero, Juan, "In Ecuadors Banana Fields, Child Labor is Key to Profits". New York Times, July 13, 2002

Freedman, David H. "What eBay Isnt Telling You" in Business 2.0, August 2002.

Human Rights Watch briefing on Sierra Leone is online at http://hrw.org/backgrounder/africa/sl-bck0711.htm

Marquis, Christopher. "U.S. Law Imperils Colombia Coca Spraying". The New York Times, July 11, 2002

Peters, Gretchen. "US, Mexico finally drug-war allies: President Vicente Foxs unprecedented cooperation with the US yields big blows to Latin narcrotraffickers [sic]." The Christian Science Monitor July 9, 2002

Risen, James "Sept. 11 Hijackers Said to Fake Data On Bank Accounts" in the New York Times, July 10, 2002

FEATURE ARTICLE:

Blood Diamonds

Conservative estimates attribute some four percent of an international diamond trade that exceeds $7 billion to smuggled stones. Many of these proceeds have been used to fund conflicts, and to launder and protect the proceeds of other illicit activities, including the drug trade and terrorism financing. Because of these links, this illegal trade is commonly referred to as "blood diamonds" or "conflict diamonds".

Diamonds are formed by tremendous heat and pressure deep inside the earth and over time are brought to the surface by volcanic activity. This activity creates "kimberlite pipes", rock formations whose properties vary depending on its individual geological formation process.

Diamond deposits in Australia, Botswana, Canada, Russia and South Africa are found deep inside kimberlite. Specialized mining equipment is required to extract the stones. In other places, water has gradually freed the diamond deposits, leaving them readily accessible in rivers and riverbeds (where the greatest danger is often from crocodiles). These alluvial diamonds are found in Angola, Brazil, Democratic Republic of Congo, Namibia and Sierra Leone.

Most of these countries tightly control their diamond industry, but not all. Angola, Democratic Republic of Congo and Sierra Leone and their neighbors are heavily involved in the smuggling trade.

Angola is notorious for a long-running conflict that has spanned three decades. Angolas corrupt central government has controlled offshore oil reserves (and billions of dollars of missing oil revenue) while the UNITA rebels largely control the diamonds. In 1997, Angola produced some $750 million dollars worth of diamonds, around two-thirds of that going to UNITA. This wealth has been used for personal gain and to finance the war. UNITA exchanged its diamonds with Burkina Faso, Liberia, Togo and others for weapons and fuel.

The United Nations implemented a series of sanctions to try to reduce this trade and, in turn the violence it has funded. With the death of UNITA leader Jonas Savimbi earlier this year, and continued international assistance, it is hoped that both the war of diamonds versus oil will end. If this happens, Angola can look to the regulated exploitation of oil and diamonds, including its rich kimberlite deposits, for income. Combined with the natural advantages of its fertile soil, Angola should be one of Africas richest, not one of its poorest, countries.

Democratic Republic of Congo has been exploited by neighboring countries for years. In addition to diamonds, cobalt, coltan, gold and other natural resources are smuggled with Rwanda, Uganda, and Burundi. To support this illegal trade, they support rebel groups and in some cases their own forces that help maintain instability in the country while protecting mineral exploitation. The success of peace talks in DR Congo will largely depend on the cooperation of the bordering countries.

Sierra Leone is another notorious case, where rebel groups are also funded by the illegal diamond trade, supported by neighboring Liberia. Liberias role in this conflict is infamous. In 1999 the government of Sierra Leone and the main rebel group, the Revolutionary United Front (RUF) reached a peace accord. Rebel leader Foday Sankoh became the chairman of its regulatory body, the Strategic Resources Commission. Under his leadership, the value of diamond exports by Sierra Leone was halved, while Liberia (despite having few diamond fields) increased its exports to ten times that of Sierra Leone.

Financed by this illegal trade, the RUF followed its defeat in the 1999 elections with a vicious attack against the civilian population, which is now marked by the large number of amputees who paid for their votes with their hands, arms, and legs.

Today, Foday Sankoh is on trial for murder, the country has held a peaceful election and the United Nations is helping the country return to stability. Crack Indian Gurkha troops deployed in the diamond areas are helping maintain order among the former rebel strongholds. The new struggle is to overcome the endemic violence and corruption so that the prosperity of its natural resources can help to rebuild the country and improve the lot of its devastated civilian population.

Efforts to stop the illegal diamond trade that helped finance these vicious civil wars began with the United Nations enactment of a series of sanctions against the sale of diamonds. Without cooperation from the diamond industry, these had little impact.

In 1998 and 1999, the violence in these countries attracted attention in the west that came close to launching a consumer boycott of diamonds, similar to the earlier backlash against the fur industry. Fearing consumer reaction, the leading diamond firms began to market "ethical diamonds" and began discussions regarding a set of rules to identify the source of diamonds and more closely regulate their distribution.

The International Diamond Manufacturers Association and World Federation of Diamond bourse agreed to establish a certification policy that began with sealing the rough diamonds, certifying them by the country of export, and verifying the shipment through a new international diamond council.

These discussions were the first stage in developing a global system to track the point of origin of diamonds. Next, these industry efforts needed to be combined with government action. In May 2000, the Kimberley Process began. This series of negotiations developed the mechanisms to track, document, certify and control diamond exports. These procedures were completed this March and will take effect in January 2003.

Each participating country must enact legislation to implement this system. In the US, the Clean Diamond Trade Act has been introduced. It would prohibit importing diamonds from countries that dont have a tracking system.

While this is a good start, in truth it will primarily help legitimate merchants overcome the stigma associated with blood diamonds. Its impact on the smuggling industry is less clear, and depends on government compliance in countries whose central authorities have little control and where corruption is widespread. There is no external control, independent monitoring, or validation mechanism.

Geological forensics may provide a technical mechanism to validate the physical location from which a stone was acquired. These techniques, still being researched and developed, involve evaluating the infrared wavelengths absorbed by a diamond and the specific pattern of light they emit via electron beam. A centralized database could describe these characteristics to indicate the country of origin and specific locations within the country. (See Eugenie Samuels article in New Scientist, May 25, 2002, for more details.)

Beyond this, the international diamond trade is intimately related to international trafficking of arms and drugs. Money laundering is common to all of these efforts and its control is needed to counter all of these illegal financing mechanisms.

As reported by the United Nations in April 2001, the same illegal financial networks go to finance UNITA, and the Lebanese Hezbollah and Amal terrorist organizations.

Today, the same networks are used by al Qaeda.

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