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TerrorismCentral Newsletter
-- For the week ending February 24, 2002 --

AUTHOR:
TerrorismCentral Editorial Staff

TITLE:
TerrorismCentral Newsletter - February 24, 2002

SOURCE:
TerrorismCentral, February 24, 2002

TEXT:

This week's feature discusses Terrorism and Business: The Impact of September 11, 2001.

The online edition of this 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. Aviation
8. Cyberterrorism and Information Warfare
9. Finance
10. Human Rights
11. Law and Legal Issues
12. Weapons of Mass Destruction
13. Newly Published

FEATURE ARTICLE:
Terrorism and Business: The Impact of September 11, 2001



NEWS HIGHLIGHTS OF THE WEEK



1. Africa

Angolan government troops killed Jonas Savimbi, leader of the UNITA rebel group for over 30 years, starting with the war of independence from colonial power Portugal. Television footage of his bullet-ridden body eliminated any doubts over his fate. Savimbi's death is seen as opening the door to peace in Angloa. The warring parties have been urged by the United Nations, neighboring African countries, US and European leaders to take advantage of this new opportunity for peace.

Rebels leader Jean-Pierre Bemba of the Mouvement de Libération du Congo (MLC) in the Democratic Republic of Congo is boycotting talks scheduled for next week, claiming many of the participants are government fronts.

President Didier Ratsiraka of Madagascar responded to opposition leader Marc Ravalomanana's proclamation of himself as President by declaring a state of emergency. Hundreds of thousands of cheering crowds and thousands of people erecting protective barricades continue to show strong support for Mr. Ravalomanana.

Following an attack on a relief center in rebel-held southern Sudan by the Sudanese air force that killed 17 civilians, the US has suspended peace talks until an explanation for the attack has been provided.

Zimbabwe, Zambia, and Malawi face acute food shortages, mostly caused by the weather. In Zimbabwe, less than half its usual amount was harvested because of the disruption caused by government land seizures.

The European Union has imposed immediate sanctions on Zimbabwe's President Mugabe and 19 of his associates, accusing them of trying to steal the presidential elections scheduled for next month by using violence and repression. The entire EU delegation has pulled out, expressing concern over continued violence and restrictions imposed on the press, including a ban on all foreign media. The United Stated has joined in imposing targeted sanctions against the Zimbabwean leadership.


2. Americas

The peace movement in Colombia has ended. Following the rebel hijacking of a commercial airliner and kidnapping of a senator, the Colombian government launched strikes at rebel targets to retake the rebel haven in the south. Presidential candidate Ingrid Betancourt is missing and presumed kidnapped following her visit to the former rebel safe haven. The safe haven has been under the control of the Revolutionary Armed Forces of Colombia (FARC) for the last 3 years. FARC are believed to be holding about 800 people hostage.

Mexican President Fox has opened an investigation into the "el 68" massacre when security forces attacked a peaceful student protest in 1968, massacring at least 250 people with bayonets and sharpshooters. The goal of the investigation is to uncover the information of the true number of fatalities and other casualties and who gave the orders.

Peru's highest court has ruled out a pardon for Lori Berenson, her last appeal against her conviction for collaboration with leftist rebels in the Tupac Amaru Revolutionary Movement.

In the United States, Americans expressed their shock and horror of the murder of Wall Street Journal reporter Daniel Pearl.

Discussions that the Department of Defense would run (disinformation campaigns, a traditional function of the CIA) have been downplayed by defense secretary Rumsfeld, ruling out the suggestion that false information might be planted in the media.

The US army has turned to Lloyd's of London for insurance against terrorist attack of military bases. US companies refused to take on the risk.

In Venezuela, a navy vice admiral has added his voice to the calls for resignation of populist President Hugo Chavez.



3. Asia Pacific

Efforts continue to re-engage the United Nations in Cambodia's desire to try former members of Khmer Rouge accused of genocide.

Fiji has jailed 10 nationalist rebels, including leader George Speight, whose death sentence was commuted to life in prison.

In a visit to South Korea, US President Bush attempted to soften his "axis of terror" rhetoric against North Korea. Bush's efforts at conciliation arrive at a time when South Korea and China have developed close relations, possibly threatening the US's role in the region.

In the Philippines, US/Philippine military operations directed against Abu Sayyafhave raised fears that other military groups will become more active, partly as a result of US involvement. The Philippine government has shown a videotape of the beheading of a soldier captured by Muslim extremists in an effort to gain support for their campaign against the militants.


4. Europe

Germany's national elections have found that expansion of the US "war against terrorism" into Iraq has become a topic of debate, with conservative opponents of Chancellor Gerhard Schroder asking for greater support of the US.

Italian authorities arrested 4 Moroccans, members of the Algerian Islamic group Salafist Group for Call and Combat, accused of planning a chemical attack (using cyanide) against water supplies in Rome and the US embassy.

Four suspected members of al Qaeda have been arrested in Turkey. They were found crossing illegally from Iran.

In Northern Ireland, chief constable Sir Ronnie Flanagan, has announced his retirement at the end of the month. The Policing Board is meeting to discuss next steps. Sir Ronnie has been criticized for his response to the Ombudsman's Omagh bombing report.

Violence continues, most recently with the murder of Matthew Burns. In the Bloody Sunday inquiry, a Northern Ireland court has ruled that police witnesses are not allowed to testify behind a screen.

The war crimes trial of former Yugoslav President Milosevic continues with testimony from victims and and aggressive defense from Milosevic that at one point was so confrontational that one of the court-appointed lawyers intervened to take over the cross-examination.


5. Middle East

Violence between Israel and the Palestinians reached heights little short of war. Palestinians stepped up targeting soldiers, checkpoints, and settlements in the West Bank and Gaza Strip while the Israelis have carried out intensive bombardment, killing dozens, and continuing to destroy Palestinian infrastructure, including the TV and radio stations and the headquarters of Palestinian leader Arafat.

Prime Minister Sharon gave a speech promising that if he continues "decisive action" including setting up a buffer area around the Palestinians, he will be able to defend Israel. He has offered no vision for a peaceful settlement.

However, the day after this speech, Israeli troops were withdrawn from the positions on the Gaza Strip they had occupied last week, restraint among the security forces was agreed and Arafat's confinement by a ring Israeli tanks and snipers has been slightly relaxed.

More than 10,000 Israeli activists held a peace rally in Tel Aviv and hundreds of soldiers have been refusing to serve in the West Bank and Gaza strip. Although the largest demonstrations for peace and negotiation in months, they are in the minority. Most Israelis continue to support tough and aggressive retaliation, even while seeming to acknowledge that a never-ending cycle of retaliation is not a solution.

Outside mediation in this climate may come from an unlikely source: Crown Prince Abdullah of Saudi Arabia has signaled that he may propose that a forthcoming Arab League summit offer to recognize and have normal relations with an Israel that has withdrawn to its pre-1967 borders.


6. South Asia

Thousands of Afghans continue to pour into Pakistan despite the putative end to the conflict. The UN Refugee Agency had been planning to help the 2.5 million refugees already in Pakistan back home and were unprepared for an influx of over 20,000 in the last two weeks. The influx is attributed to continued violence, prejudice against Taliban and the drought. Documentation of civilian casualties, including mistargeted airstrikes and shootings, is being investigated and documented by a number of news and human rights organizations.

The US has signaled it is ready to resume arms sales to India.

In Nepal, the state of emergency has been extended. Nepalese security forces have attacked Maoist rebels, killing 48. In response, the rebels launched a series of attacks across the country and called a 2-day general strike that shut down most of the country.

The murder of Daniel Pearl, the journalist abducted in Pakistan, has led to international condemnation. Pakistani authorities have stepped up their hunt for the killer, after receiving a videotape showing the reporter's throat being cut. Fears have been expressed that this murder is only the start of a new battle between Islamic militants and the government.

The Sri Lankan government and Tamil Tiger rebels have agreed to a permanent cease-fire. Negotiations for a political settlement may start as early as in 3 months time.


7. Aviation

Federal takeover of airport screening has led to conflicts with airline carriers, causing delays, evacuations, and problems in the treatment of frequent fliers. The federal officials have tried to stress consistency among airports.


8. Cyberterrorism and Information Warfare

The FBI and Secret Service announced support for draft reporting guidelines developed by the US Critical Infrastructure Protection Board called "The CIO Cyberthreat Response and Reporting Guidelines". As industry review begins, initial criticism focuses on the effectiveness of the recommendations, concern about security corporate information.


9. Finance

The Channel Islands in the UK are under pressure to comply with international action to improve financial supervision. The UK government is considering sanctions against Jersey if it fails to comply. Guernsey says it is likely to be able to comply by the February 28 deadline.

3 Swedish Somalis, listed on the US list to freeze assets, have asked the United Nations to remove their names from the list of suspected terrorists.


10. Human Rights

Indonesia has charged 7 people in crimes against humanity in violence during the 1999 independence referendum that killed at least 1,000. Indonesia has refused extradition of the suspects.

The first legal challenges over US detention of those detained in Quantanamo Bay and under immigration charges in the US are working through the US justice system. In the case brought by a coalition of civil libertarians that it was unconstitutional to hold prisoners from Afghanistan at the naval base, a federal judge in Los Angeles has ruled that that is outside the jurisdiction of the US Courts and would not be heard. The decision is being appealed.


11. Law and Legal Issues

The trial for murder of Jamil Al-Amin has begun in Altanta, Georgia. Mr. Al-Amin was formerly H. Rap Brown, a member of the Black Panthers a radical black power group active in the 1960s and 70s.

In the first conviction of an al-Qada operative since September 11, an Italian court has convicted 4 Tunisians (Essid Sami Ben Khemais ("the Sabre") and his colleagues Belgacem Mohamed Ben Aouadi, Bouchoucha Mokhtar and Charaabi Tarek) of criminal intent to obtain and transport arms, explosives and chemicals. They have been sentenced to 5 years in prison.

Peru's highest court has ruled out a pardon for Lori Berenson, her last appeal against her conviction for collaboration with leftist rebels in the Tupac Amaru Revolutionary Movement. She has protested the trial as a farce and says she considers herself a political prisoner, jailed because her concern for social justice was wrongly portrayed as terrorism.


12. Weapons of Mass Destruction

Scientists at the Institute for Genomic Research (TIGR) and in Northern Arizona University have been working with the FBI to track down differences in anthrax strains that may help narrow the sources of the anthrax mail attacls.

A chemical attack was foiled by the quick actions of Italian authorities, who arrested 4 Moroccans, members of the Algerian Islamic group Salafist Group for Call and Combat. Supplies of cyanide were discovered, as well as plans of water supplies in Rome and one showing the US embassy, suggesting those were the targets of the potential attacks.



13. Newly Published:
Hoffman, Adina. House of Windows: Portrains from a Jerusalem Neighborhood. Broadway Books.

Kiser, John W. The Monks of Tibhirne. St. Martin's Press.

Shehadeh, Raja. Strangers in the House: Coming of Age in Occupied Palestine. Steerforth Press.



FEATURE ARTICLE:

Terrorism and Business: The Impact of September 11, 2001

Many countries have become accustomed to the multi-faceted damage that terrorism precipitates. For instance, the economic consequences of terrorism in countries like Spain, with a history of Basque separatist attacks on the tourism industry, or in Colombia, where militant groups practice frequent attacks against the oil industry, are well-established.

In the United States, a country unused to international violence, the impact of the sudden and dramatic attacks on September 11 is still unknown. In its issue of September 15, 2001, the Economist said:

"The attack on the World Trade Centre has reduced to rubble one of the most famous symbols of American capitalism. But has it also increased the risk of a collapse in an already fragile world economy? American stockmarkets were closed this week, but the immediate answer from other markets around the globe seemed to be a tentative 'Yes'."

The US government's response to the attacks included immediate economic assistance and political initiatives designed to help forestall global economic difficulties. Ambassador Lino Gutierrez, Acting Assistant Secretary of State for Western Hemisphere Affairs in the US Department of State, detailed four initiatives of the US government:

"...First, we have asked all countries to ratify the 12 international counterterrorism treaties that allow international cooperation to work smoothly. ...
Second, we are working with the nations of the hemisphere to ensure the identification and seizure of the financial assets of terrorism. ...
Third, we are working with countries to ensure that terrorism is criminalized in all its forms. ...
Last, and perhaps most importantly, we are working to improve border controls....".

These efforts have progressed and been documented in this Newsletter and in other material in the TerrorismCentral.com Library.

A recent addition to our Library on this topic offers an unusual collection of information about the economic repercussions of September 11. "Terrorism and Business: The Impact of September 11, 2001", by Dean C. Alexander and Yonah Alexander, (Transnational Publishers), is an archival snapshot of where the economy stood at the beginning of 2002, just 3 months after the attacks.
The book covers the following 6 main topic areas: historical and contemporary perspectives, economic costs to the United States, the impact on selected sectors of corporate America, the role of industry, the impact on US labor, and US government responses.

The following extract is taken from the discussion of Security in the section on Corporate America:

"Some have likened investments on security measures to funds allocated to reducing pollution in that they are both socially helpful but economically unproductive. Such a perspective seems to neglect the often-quoted adage -- penny rich, pound foolish. After all, improved aviation security at U.S. airports, coupled with better intelligence and law enforcement capabilities on September 11, 2001, probably would have prevented someif not allof the nineteen hijackers from boarding the four aircrafts that fateful day. Instead, and ignoring the advantage of hindsight, inadequate security at the three airportsDulles, Newark, and Loganenabled the perpetrators access to the planes with their subsequent horrific impact: over 3,300 deaths, billions of dollars of property damage, significant declines in financial markets, and the negative impact on various industry sectors, including airlines, insurance, tourism, and hospitality.

According to Cushman and Wakefield Inc., the real estate firm, about 50% of multi-tenant commercial buildings will invest in better security, such as: using computerized access control systems, video surveillance systems, bomb-detection devices, and x-ray equipment.

Boeing Co.s improved security measures include: establishing barriers on roads leading to unfenced buildings and forbidding workers from wearing or using company logos while traveling overseas. Some companies, such as Eastman Kodak, have the rationale that the improved security measures are best not discussed as any developments may be countered by potential perpetrators.

An example of the sensitivity of security issues in the aftermath of the attacks was the decision by Hewlett-Packard to have its San Francisco and Los Angeles employees remain at home on the day of the incidents -- two scheduled destination points of the hijacked planes.

The American Chemistry Council, the industry association for over 180 chemical companies, is cognizant of the potential threats to the chemical sector. After all, toxic and volatile chemicals could kill thousands during an explosion or fire at a manufacturing plant or storage facility. With this in mind, chemical companies have accelerated vigilance against possible attacks by: maintaining readily accessible hazardous materials teams, fortifying plants and storage facilities, raising the training and skills of security officers, and acquiring additional vapor suppression machines.

The Washington, D.C., areas metro and bus system is undertaking a variety of anti-terrorism measures, including: improving security at bus garages and rail yards; increasing the number of police officers patrolling stations, trains, and buses; and installing additional equipment."


The disastrous economic scenarios feared last September have not materialized, though financial markets and employment around the globe remain unsettled. The US economy was already contracting at the time of the attacks, and economic data is neither detailed enough nor yet available to indicate any separate impact of the attacks.

The only sure measurement is the immediate loss of physical and human capital suffered in New York and Washington. The Milken Institute Review has published a number of estimates. In issue 4, 2001, Peter Navarro, an economist at the University of California inIrvine, estimated the cost of property damage between $11-13 billion and the cost of human capital at around $40 billion. The Institute's researchers Ross DeVol and Perry Wong in "Metropolitan Economies" (No 1, 2002) provide comparisons by industry of pre- and post-attack numbers.

As the data continues to unfold and analysis continues, there are a number of resources that readers may find useful in staying abreast of this topic. For breaking news, we recommend the Wall Street Journal and the Financial Times newspapers and the weekly Economist magazine. For collected analytical data, the resources available to subscribers at TerrorismCentral.com include such materials as the full text of the "Terrorism and Business" book, government reports, and a great deal of other source material. If you have particular questions or areas of interest, please feel free to email us.


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We look forward to hearing from you.
Editorial Team
TerrorismCentral

PUBLICATION DATE:
February 24, 2002

DATE:
20020224