http://www.latimes.com/news/opinion/la-oe-levitt3jul03,0,4057571.story?coll=la-opinion-rightrail

Hamas' hidden economy

By Matthew Levitt, MATTHEW LEVITT is a senior fellow at the Washington 
Institute. Previously, he served as deputy assistant secretary for intelligence 
and analysis at the Treasury Department. He is the author of "Hamas:
July 3, 2007 


MILITARY insurrections cost money. To take over the Gaza Strip last month, 
Hamas had to pay salaries, procure weapons, manufacture rockets, buy help from 
local crime families, bribe opponents, print leaflets and banners, produce 
media propaganda and even order up Hamas hats and bandanas.

How did Hamas fund this Gaza coup? What of the international "economic siege" 
that Hamas complained of against its government? Wasn't Hamas so strapped for 
funds that its leaders resorted to smuggling suitcases of Iranian cash into 
Gaza across the border with Egypt?

Part of the answer lies in - or rather under - the city of Rafah, on the 
Egyptian border. Smuggling tunnels, operated primarily by Gaza clans more 
interested in profit than ideology, run between houses on either side of the 
border. Egyptian and Israeli authorities have discovered tunnels dug as deep as 
98 feet below ground in an effort to avoid sonar detection. Some tunnels 
include air ducts, electricity and lighting, and even rails and wagons to help 
smuggle heavy objects. Even when the mouths to the tunnels are found and 
sealed, the midsections remain intact and new openings are dug to reconnect 
them. 

For a few thousand dollars, groups like Hamas rent tunnels for a night or more 
to smuggle in weapons and other material, according to Israeli and Egyptian 
officials and press reports. Hamas was able to smuggle and pay for the weapons, 
despite the international sanctions regime, through a variety of means - in a 
textbook example of the seamless cooperation between its military, political 
and charitable wings.

The Hamas political bureau, headquartered in Damascus under the leadership of 
Khalid Mishal and Mousa Mohammed Abu Marzook, has long raised funds to arm 
militants in the West Bank and Gaza Strip, according to declassified U.S. 
intelligence. The bureau has smuggled weapons overland into the West Bank from 
Jordan, by sea in waterproof barrels dropped off the Gaza shore by ships 
launched from Syria and Lebanon and underground through the Rafah tunnels. In 
recent months, Iran has been funding these operations.

According to Israeli authorities, Izzidin Sheikh Khalil, a senior Hamas 
operative, ran the Rafah weapons smuggling operations out of Damascus until he 
was killed in an explosion there in 2004. (Israel is presumed to have been 
behind the assassination but has never claimed responsibility.) 

Perhaps most disturbingly overt is the funding Hamas continues to receive 
through its charitable and social welfare wing. Despite being designated a 
terrorist group by the United States and the European Union, Hamas, in the face 
of international sanctions, has successfully transferred funds into the West 
Bank and Gaza Strip through its charity committees and social service 
organizations. Mixing funds across its political, charitable and militant 
wings, Hamas supports its Executive Force militia and Izzidin al-Qassam Brigade 
terror cells under a veil of political and humanitarian legitimacy. 

For example, last month Israeli authorities indicted four members of the A-Ram 
Charity Committee north of Jerusalem on charges of funding Hamas. According to 
the indictment, about $237,000 was transferred to the A-Ram Committee in the 
last year by the Charity Coalition (also known as the Union of Good), described 
as a Saudi Arabian-based umbrella organization for groups funding Hamas.

Now that Hamas controls Gaza, it is even more critical to close the two 
loopholes that enabled the movement to supply and fund its Gaza coup - the 
Rafah tunnel smuggling and the funding through the Hamas social service network.

Only Egypt can effectively seal its border with Gaza. Cairo has sidelined Hamas 
diplomatically and announced its opposition to the emergence of "Islamic 
warlords" in Gaza. It needs to follow up on this rhetoric with a serious border 
patrol initiative, focused primarily on the 8-mile-long border with Gaza. It 
also must police the much longer border between the Sinai and Negev deserts, 
across which smugglers move weapons for the West Bank.

The United States and the European Union must work to avert a humanitarian 
crisis by helping reliable and transparent international organizations aid the 
Palestinians. They also should expand their designation of terrorist entities 
to include the long list of Hamas-controlled entities in the West Bank and Gaza 
Strip that receive foreign charity. Designating charity committees tied to 
Hamas would prompt international banks to block such transactions. 

As long as its political and social wings are allowed to operate unhindered, 
Hamas will be able to fully fund all of its activities, including its terrorist 
attacks against Israelis and Palestinians alike. 

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