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Information Warfare


All US Ports on Alert Over Alleged "Bomb Plot"


Where are those defective fuel tanks when you need them?

WASHINGTON - The U.S. Customs Service has placed all 301 ports of entry into
the United States on high alert following the arrest of an Algerian in
Washington state who had crossed the border from Canada in a rental car with
more than 100 pounds of bomb-making supplies and a sophisticated detonating
device.

Ahmed Ressam, 32, a resident of Montreal who had been denied refugee status
by Canadian officials because of his alleged links to an Islamic terrorist
organization called as the Islamic Armed Group, was arrested Tuesday night by
customs officials in Port Angeles, Washington.
He was charged Friday in Seattle with transporting explosives into the United
States, providing false identification and lying to authorities.

Andre Poirer, a spokesman for the Montreal police, said that his department
had information possibly linking Mr. Ressam to Karim Said Atmani, who was
extradited by Canada to France on charges that he took part in a Paris subway
bombing in 1995 that killed four people and wounded 86.

Mr. Poirer also said that the authorities in Montreal were investigating
whether Mr. Ressam was linked to a theft ring in the city suspected of
funneling money to radical Islamic groups around the world.

[Pakistan arrested more than 200 people - possibly linked with Osama bin
Laden, the terror suspect based in Afghanistan - who they fear may try to
attack U.S. citizens in their country, an intelligence official said Sunday.]

Montreal police announced Thursday that they had arrested 11 men, most of
Algerian origin, over the last four months for thefts during the previous two
years that netted more than 5,000 items, including computers, cellular
phones, passports and credit cards. Based on information from Interpol and
the French police, police in Montreal said they had concluded that the
purpose of the ring was to generate cash to help finance Muslim extremist
groups.

U.S. authorities, meanwhile, intensified efforts to find an accomplice who
apparently had been with Mr. Ressam at a motel in British Columbia for three
weeks prior to Mr. Ressam's passage into the United States. The FBI is also
investigating links that agents believe Mr. Ressam has to other Islamic
extremists in the United States, a U.S. official said.

Harvey Kushner, a terrorism expert at Long Island University who has close
ties to federal law enforcement officials, said Saturday that he had been
told by the authorities that the search for Mr. Ressam's accomplice extended
from the U.S. West Coast to New York.

Mr. Kushner said that the bomb-making equipment and timing device Mr. Ressam
had in his possession were virtually identical to those used by associates of
Mr. bin Laden, the millionaire Saudi militant who was given refuge in
Afghanistan.

U.S. officials have yet to establish a definitive link between Mr. Ressam and
Mr. bin Laden, but a senior U.S. official said Saturday that there was
''evidence that would lead me to believe that he has associations with bin
Laden, or people who have associations with bin Laden.''

Vincent Cannistraro, a former head of counterterrorist operations at the CIA
who now works as a security consultant, said that Mr. Ressam's arrest had
left law enforcement and intelligence officials deeply concerned about
possible terrorist attacks on U.S. territory as millennium celebrations
approach.

''It is a little scary, because they weren't looking here,'' Mr. Cannistraro
said, ''They were looking abroad.''

He said the detonation device found in Mr. Ressam's rental car - circuit
boards linked to a watch and a nine-volt battery - was the method taught in
Mr. bin Laden's camps in Afghanistan.
International Herald Tribune, December 20, 1999


Diamond Market


A Diamond's Just a Pretty Rock, but DeBeers is Forever


Come on, buy one for the Millennium. Do it for the 1000-year Reich.

A millennium fillip is set to lift diamond sales to record levels this year.

De Beers, the South African group that controls about 70 per cent of the
rough diamond market through its London-based Central Selling Organisation,
is expected to announce on Monday that its sales in 1999 have topped $5bn for
the first time. The strength of the US market and tentative recovery in Asia
have helped sales rebound from a severe downturn in 1998.

But De Beers has also been cashing in on the millennium, both by selling a
limited edition of 20,000 diamonds and by promoting diamonds as the ideal
millennium gift.

Sales in the first half of this year rose 44 per cent to $2.5bn, but a steady
improvement in demand in recent months is expected to mean that the second
half could be even stronger. Analysts are forecasting that De Beers' sales
may be at least 50 per cent up on 1998, at between $5bn and $5.3bn.

Jack Jones, an analyst at CIBC World Markets in London, said: "We are
expecting very strong diamond sales this year. What we are most interested in
now is how sales are going in North America. The initial indications are that
trading is encouraging."

Eighteen months of poor sales after the Asian crisis of 1997 left 1998 sales
28 per cent down at $3.3bn - the lowest since 1987.

That fall was exacerbated by De Beers restricting the supply of diamonds in
order to stop prices falling. That meant that the diamond industry was short
of stocks at the beginning of this year, although De Beers' own stockpile had
swelled to $4.8bn.

Roger Chaplin, of T. Hoare Cannacord, who is predicting 1999 sales of $5.1bn
and $5.6bn next year, said: "Some analysts are expecting a slight dip in 2000
on the grounds that some of this year's growth comes from re-stocking the
pipeline.

"I don't think sales will drop. . . . given the buoyant world economy and the
millennium campaign."
The Financial Times, December 20, 1999
-----
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