U.S. Response I:  Congress Approves Anti-Terrorism, Defense Funds

The U.S. Congress allocated more than $20 billion for anti-terrorism efforts and approved a significant increase in military spending over the last fiscal year yesterday.  The House approved the fiscal 2002 defense appropriations bill by a vote of 408-6, and the Senate followed with a vote of 94-2 (Robert Pear, New York Times, Dec. 21).

The bill provides $317.4 billion for the Defense Department in fiscal 2002—$19.2 billion more than in fiscal 2001, excluding emergency supplemental funding.  The bill includes:

*         $881 million for programs to combat terrorism and deal with weapons of mass destruction.  Programs slated to receive money under this provision include Cooperative Threat Reduction programs in the former Soviet Union (see GSN, Dec. 14) and efforts to combat chemical and biological weapons;

*         $7.8 billion for missile defense, including research, development and procurement—an increase of $2.5 billion over fiscal 2001.  The bill will fund all the requested amounts for the Ground-Based Midcourse Segment and the Pacific Test Bed.  It will add $82 million for fielding the PAC-3 theater missile defense system and $66 million for the Arrow missile program (see GSN, Nov. 12).  Congress also decided to restructure the Space Based Infrared System Low (SBIRS-Low) due to questions about its performance and projected cost increases (see GSN, Dec. 19);

*         $1.1 billion for chemical demilitarization;

*         $105.1 billion for operation and maintenance;

*         $60.9 billion for procurement; and

*         $49 billion for research and development, including $219 million for continued B-2 development (House Appropriations Committee release, Dec. 19).

$20 Billion Anti-Terrorism Supplemental

Congress also approved a $20 billion supplemental anti-terrorism measure attached to the appropriations bill.  The supplemental includes:

*         $8.3 billion for homeland defense, including:

o         $2.5 billion for public health and bioterrorism activities—$1 billion more than requested,

o         $226 million for nuclear nonproliferation programs, including $120 million for programs to secure nuclear materials in Russia and other parts of the former Soviet Union (see GSN, Dec. 20),

o         $745 million for FBI counterterrorism efforts—$206 million above the request, and

o         A one-time expenditure of $500 million for Postal Service emergency costs to repair facilities destroyed in the recent terrorist attacks and guard against bioterrorism (see GSN, today);

*         $3.5 billion for the Defense Department for operational costs in the war against terrorism, Pentagon reconstruction and classified programs.  Congress provided $3.8 billion less than U.S. President George W. Bush had requested for the Defense Department in the emergency supplemental; and

*         $8.2 billion for recovery efforts in areas directly affected by the Sept. 11 terrorist attacks.

The $20 billion supplemental was the second half of the $40 billion supplemental Congress passed on Sept. 14 in response to the Sept. 11 attacks (House Appropriations Committee release, Dec. 19).

More Money for CDC

The Senate also decided yesterday to provide large increases for research at the National Institutes of Health and the Centers for Disease Control and Prevention as part of a $123 billion appropriations bill for the departments of Labor, Education and Health and Human Services (Associated Press/New York Times, Dec. 20).  The House of Representatives approved the bill Wednesday (Library of Congress, Dec. 21).

Back to top

U.S. Response II:  Congress Provides No Assistance to Insurers

U.S. Congress adjourned yesterday without approving measures to provide future federal assistance for terrorism insurers.  Senators blocked the legislation when they were unable to agree whether to include tort reform in the bill.

Insurance industry representatives have said companies could pay the $50 billion to $70 billion for claims resulting from the Sept. 11 attacks, but the increased concern of future terrorist attacks has created uncertainty that makes calculating risks difficult, which in turn increases the difficulty for insurance companies to price policies.

Some lawmakers have expressed concern that insurance companies would drastically increase prices or limit terrorism insurance.  No company has yet said it would refuse to provide all terrorism insurance, but some companies have limited their coverage or raised prices.

Reinsurance companies, which insure insurance companies, have indicated they would not renew terrorism insurance policies at the end of 2001 when 70 percent of reinsurance policies expire.  That would force primary insurers to absorb all the risk, and several companies have said they would not provide terrorism insurance under those conditions. 

“Obviously we’re disappointed by the failure of the U.S. Senate to act and think it’s going to be very disruptive to the insurance marketplace … Individual companies have to assess their own risk portfolio, and they have made it clear to Congress that they have little appetite, if any, to cover acts of terrorism,” said Peter Lefkin of Fireman’s Fund Insurance, adding that his company was considering whether to provide its insurance coverage.

An absence of affordable terrorism insurance coverage could have serious repercussions in the economy, according to insurance industry representatives and some lawmakers.  “I’m deeply disappointed that the Senate failed to successfully address this critically important matter … This is too important a problem to leave to chance, and I worry about the impact of this on our economic foundation,” said Senator Christopher Dodd (D-Conn.).

The White House also expressed disappointment with the bill’s outcome.  “This will create an unfortunate and unnecessary burden on our economy at a time when we don’t need it,” said White House spokeswoman Claire Buchan (Jackie Spinner, Washington Post, Dec. 21).

Several experts said the effects on the economy would not be immediately obvious but could be serious.  “This won’t cause bank runs or panics in the street, but it will cause something much more insidious, an added cost and slowing down of the economy at the worst possible time,” said Treasury Undersecretary Peter Fisher (Labaton/Treaster, New York Times, Dec. 21).

An inability to buy terrorism insurance could hurt commercial property owners’ chances to obtain loans.  “No insurance means no loan, and no loan means no new construction,” said Steve Bartlett, president of the Financial Services Roundtable.

Railroad carriers that transport hazardous materials could also suffer, said Obie O’Bannon of the Association of American Railroads.  U.S. law prohibits rail carriers from refusing to transport shipments, so without insurance the companies would have to choose between breaking the law and accepting the risk of a terrorist attack, O’Bannon said.

The House of Representatives passed legislation last month to provide federal financial aid to insurers in case of large claims from terrorist attacks in the next couple years (see GSN, Nov. 30).  Terrorism insurance was typically part of most U.S. policies before Sept. 11 (Spinner, Washington Post, Dec. 21).

Back to top

U.S. Response III:  Bush Freezes Pakistani Groups’ Assets

The United States yesterday asked its allies around the world to freeze the assets of two Pakistani groups, including a charity believed to have been used to help suspected terrorist mastermind Osama bin Laden obtain nuclear weapons, according to the New York Times.

One of the groups, Ummah Tameer-e-Nau, is run by two former Pakistani nuclear scientists who may have visited bin Laden earlier this year, the Times reported (see GSN, Dec. 12).

“It was the UTN that provided information about nuclear weapons to al-Qaeda,” said U.S. President George W. Bush.  The scientists, Sultan Bashiru-din Mehmood and Chaudry Abdul Majid, were detained and questioned in Pakistan, but investigators and the CIA determined they did not know enough about nuclear weapons to assist bin Laden.

UTN leader Mehmood, former director of the Pakistan Atomic Energy Commission, left the commission “after criticizing the government of Pakistan’s movement toward signing the Comprehensive Test Ban Treaty,” the Bush administration said in a fact sheet released yesterday.

Officials believe that UTN members met with bin Laden as well as other al-Qaeda and Taliban leaders to discuss development of weapons of mass destruction, according to a U.S. White House release (Sanger/Eichenwald, New York Times, Dec. 21).

A search of the UTN offices in Kabul, abandoned during the U.S. bombing, revealed large amounts of important data on nuclear weapons, including computer hard drives and notebooks, U.S. officials said.  The information found had far more detail than what was available on public sites on the Internet, they added (MSNBC.com, Dec. 21).

International Response

Senior Pakistani officials said Bush’s statement was tantamount to accusing Pakistani President Gen. Pervez Musharraf of lying in his statements that the UTN was involved only in relief work and had nothing to do with nuclear weapons, the New York Times reported.

“At the very least, you’d have to say it’s a huge embarrassment to Musharraf,” a Western diplomat said.

Diplomats said they were surprised that the dispute over the two nuclear scientists had led to such a public split between the United States and Pakistan.  In his order last week to release the detained scientists, Musharraf might have decided to send a signal that Pakistan was drawing “a line in the stand,” and would not be ordered around when it came to nuclear weapons issues, diplomats said (John Burns, New York Times, Dec. 21).

Back to top

Canadian Response:  Senate Passes Anti-Terrorism Law

Canadian Governor General Adrienne Clarkson signed Canada’s new and controversial anti-terrorism bill into law yesterday shortly after the Senate passed it (see GSN, Oct. 17).  The House of Commons passed the bill late in November (United Press International, Dec. 19).

The law is intended to bring Canada into closer conformity with its allies after the Sept. 11 attacks on the United States, the National Post reported.  Policymakers studied charts comparing Canadian law with laws in the United States, United Kingdom, France and European Union to detect differences (see GSN, Dec. 7).  The result was new legislation that brings Canadian law closer to that of its allies but stops short of some of the more far-reaching steps of the United States (see GSN, Oct. 26), United Kingdom (see GSN, Nov. 20) and France.

The new law does the following:

*         Defines terrorist activity as involving acts of violence or destruction intended to influence government or intimidate the public, similar to U.S. and British law.  Terrorist activity must stem from religious, ideological or political motivation to meet the definition—similar to British law but different from U.S. and French law.

*         Does not ban membership in terrorist organizations, similar to U.S. and French law.

*         Allows authorities to detain suspected terrorists for 48 hours without obtaining a warrant, although they must present the suspect before a judge within 24 hours for a decision on the conditions of release.  U.S. law allows authorities to detain suspected aliens for seven days without charge, and British law allows indefinite detention.

*         Extends the valid period of a wiretap, similar to U.S. law.

*         Allows authorities to require people they suspect may have information about terrorism to answer questions before a judge, but the information cannot lead to charges, and suspects have the right to counsel—unlike U.S. law.

*         Allows the attorney general to overrule court decisions that could disclose certain sensitive information.

*         Includes a five-year sunset clause on new investigative hearings and preventive arrest powers.

Some critics said that while the law did not grant Canadian government as many powers as some of its allies have, oversight in Canada is less stringent than in countries like the United States (Luiza Chwialkowska, National Post, Dec. 19).

Back to top

U.S. Response I:  House Moves to Implement Anti-Terrorism Treaties

The U.S. House of Representatives yesterday approved measures, 381-36, to implement the International Convention for the Suppression of Terrorist Bombings and the International Convention for the Suppression of the Financing of Terrorism. 

The anti-bombing treaty requires parties to prosecute or extradite suspects in bombing attacks.  The United States initiated the act after the 1996 attack on U.S. military personnel in Saudi Arabia.  The U.S. Senate approved the convention in 1999, and it entered into force in May 2001. 

The financing treaty requires parties to prosecute or extradite people suspected of providing or collecting funds for terrorist attacks.  The Senate has approved the treaty, but it has not entered into force internationally.

Several House Democrats who supported the treaties expressed concern that provisions included in the implementation legislation allowing the death penalty for some bombing crimes could make it more difficult to persuade anti-capital punishment countries to send suspects to the United States.

“It’s become a serious problem in terms of our legal relationships with our most steadfast allies,” said Representative William Delahunt (D-Mass.).

The Senate has yet to consider the House legislation (Jim Abrams, Associated Press Worldstream, Dec. 19).

Back to top

U.S. Response II:  House Approves EPA Anti-Terrorism Funds

The U.S. House of Representatives Tuesday gave financial support to the U.S. Environmental Protection Agency to combat terrorism.  The House approved legislation that would provide $12 million annually to the EPA to research ways to prevent, detect and respond to terrorist threats to the national water supply infrastructure (Jim Abrams, Associated Press Worldstream, Dec. 19).

The move came on the same day that two dozen representatives from industries and local government agencies said at an EPA forum that they needed more information and funding to counter terrorist threats.

“We need a list of known and emerging contaminants, including biological, radiological and chemical contaminants,” said Ray Riordan, emergency preparedness officer for the [San Francisco] East Bay Municipal Utility District.  Riordan suggested the EPA develop a database on bioterrorism and a model to determine how far contaminants could travel in a water supply system.  U.S. water districts also needed assistance to install detection systems, information on treating poisoned water supplies and funding for studies on where systems are most vulnerable, he said.

The EPA’s fiscal 2002 budget request only asked for $100,000 for drinking water vulnerability studies, said Wayne Nastri, EPA’s western regional chief, who added that state officials should consider moving money into anti-terrorism programs in their 2002 federal grant applications (Kiley Russell, Knight Ridder/Tribune News Service/Contra Costa Times, Dec. 19).

Back to top

U.S. Response:  $8.3 Billion for Domestic Security Expected

Negotiators from the U.S. Senate and House of Representatives agreed yesterday to provide $8.3 billion for domestic security programs—about $4 billion more than the White House requested.  The funds are part of a compromise $20 billion anti-terrorism package, attached to a $318 billion fiscal 2002 defense appropriations act.  The proposed legislation includes $2.5 billion for public health and combatting biological terrorism—$1 billion more than the White House proposal.

To provide more money for domestic defense and recovery efforts, the Congressional proposal diverted funds that the White House would have sent to the Pentagon.  The House-Senate conferees provided $3.5 billion for the Pentagon, much less than the $7.3 billion President George W. Bush requested.  Once all legislation is considered, however, the Pentagon budget for fiscal 2002 is $435 billion, 15 percent more than last year, and the Pentagon will probably gain more funds early next year, the Associated Press reported.

The legislation also provides about $7.8 billion for national missile defense, $500 million less than Bush requested.  Congress also allocated $8.2 billion for areas directly affected by the attacks, compared to $6.3 billion in the Bush proposal.

House and Senate negotiators met to reconcile different House and Senate versions of the legislation, which were passed after intense debates in both houses.  Senate Democrats had earlier tried to pass an anti-terrorism package that exceeded White House proposals by $15 billion.  The Democrats eventually dropped most of their proposals after Bush threatened to veto any legislation over $20 billion (see GSN, Dec. 10).

The $20 billion anti-terrorism package was part of a $40 billion package Congress approved shortly after the Sept. 11 attacks.  Bush had control over half of the package, but Congress was responsible for appropriating the remaining $20 billion.

The House was expected to vote on the compromise legislation today, and the Senate could also consider it today (Alan Fram, Associated Press, Dec. 18).

Other measures in the legislation would include:

*         $403 million for former Soviet Union threat reduction programs in the Defense Department (see GSN, Dec. 14).  Of that money $15 million would be reserved to dismantle and dispose of nuclear submarines in the Russian Far East.

*         $15.8 million for security for the 2002 Winter Olympic Games in Utah (Senate Appropriations Committee release, Dec. 18).

“This package is a compromise.  It does not provide all of the funding that is needed for homeland defense, local recovery initiatives or the military effort,” said Senate Appropriations Committee Chairman Robert Byrd (D-W.V.).  “At the same time, it does not shortchange any of these priorities.  It takes solid steps toward accomplishing all of these goals” (Senate Appropriations Committee release, Dec. 18).

Back to top

International Response:  Europe, U.S. Agree to Share Information

The United States and Interpol have reached an agreement to create a database of information on terrorist financial networks, U.S. Treasury Department officials said yesterday (see GSN, Dec. 5).

The agreement is the first significant involvement by international law enforcement against terrorist finances since the Sept. 11 attacks, said Jimmy Gurule, Treasury undersecretary of enforcement.  “This is a way of making information available to 179 countries on a real-time basis,” Gurule said.  “It has the potential to generate enormous leads.”

The database will store the names of entities that have been officially identified as providing financial aid to terrorists, according to the New York Times.  It is to include individuals and groups who have had assets frozen by the United States, as well as those identified by the United Nations and other members of Interpol.

The United States has been attempting to reduce reliance on informal agreements between international law enforcement agencies, the Times reported.  The meetings in Europe to work out the recent agreement were a first step, Gurule said.  During those meetings, Treasury officials said they would help locate and freeze financial accounts of terrorist groups that attack other countries, he said.  “We asked for cooperation and we offered cooperation” (Kurt Eichenwald, New York Times, Dec. 19).

Back to top

Threat Assessment:  United States Still On Alert

The United States is still on alert for possible terrorist attacks, officials said today, even though the Muslim holiday of Ramadan, which prompted the latest warning, has come to an end (see GSN, Dec. 4).

“The alert remains in effect because the threat still remains,” Office of Homeland Security spokesman Gordon Johndroe said.  The threat warning issued at the beginning of the month will stay in effect at least through the Jewish and Christian holidays, according to the Associated Press.

U.S. agencies have received information on possible threats since the Dec. 3 warning was issued, law enforcement and intelligence officials said.  The information is not specific, but does illustrate that terrorists sympathetic to suspected terrorist mastermind Osama bin Laden want to attack, the officials said.

Bin Laden supporters have also viewed the end of Ramadan as a time to strike, they added. In a recently released videotape, bin Laden is heard predicting Allah will provide “more victory during the holy month of Ramadan,” according to the AP.

There are no plans to issue a new warning, the AP reported.  People will be informed that the recent warning is still in effect and that they need to be on the lookout for any suspicious activity, the officials said.

According to one senior official, the U.S. message is “not to let your guard down one bit.  There are terrorists whose plans might have been disrupted who remain at large and are looking for the opportunity.”

New Alert System Planned

The Bush administration is examining new ways of issuing threat warnings, the AP reported. Office of Homeland Security Director Tom Ridge is considering a four-stage plan similar to the U.S. military’s “DEFCON” system.  The plan, scheduled to be implemented next year, would help local law enforcement rate the seriousness of each threat, officials said (John Soloman, Associated Press, Dec. 18).

Back to top

About Newswire  |  Contact National Journal  |  Re-Use Guidelines

HOME  |  CONTACT US  |  GET INVOLVED  |  SITE MAP