Report says Iraq becoming terrorist safe haven
State Department cites threat of small groups tied to al Qaeda
>From Elise Labott
CNN


WASHINGTON (CNN) -- The State Department's annual terrorism report
finds that Iraq is becoming a safe haven for terrorists and has
attracted a "foreign fighter pipeline" linked to terrorist plots,
cells and attacks throughout the world, a senior State Department
official involved in the preparation of the report told CNN.

The report, to be released Friday, also says terrorist groups loosely
associated with al Qaeda present the greatest threat to the United
States and the world, even greater than al Qaeda itself.

The official told CNN that, with al Qaeda's senior leadership 
scattered and on the run, autonomous cells inspired by al Qaeda's
extremist ideology present a greater challenge because they are
smaller, harder to detect and more difficult to counter.

"These micro-actors are launching more attacks, and they are more
local and more lethal," the senior official, who spoke on the
condition of anonymity because the report had not been released, told
CNN Thursday in an interview. This official cited last July's bombings
in London by British Muslims with ties to Pakistan as an example of an
increase in attacks by local terrorists with foreign ties.

While the official described al Qaeda as "crippled and constrained
without the strategic network" it once had, he said there are still
indications al Qaeda is planning a spectacular terrorist attack on
U.S. soil.

"We have not been able to deliver the knockout punch to al Qaeda, and
there is no doubt they are in the planning stages for something big,"
the official said.

But, he added, al Qaeda leader Osama bin Laden and deputy Ayman al-
Zawahiri "might settle for something less" because of their diminished
capacity.

The official also said there is a belief that bin Laden and al-
Zawahiri are in a power struggle with Abu Musab al-Zarqawi, the 
leader of al Qaeda in Iraq, as evidenced by a letter written by al-
Zawahiri to al-Zarqawi criticizing his tactics.

The annual State Department's Patterns of Global Terrorism report will
also cite Iraq as a key front in anti-terrorism efforts. The official
acknowledged that Iraq has become "both a war and a cause," which has
further radicalized Muslims.

Noting that al-Zarqawi's network has claimed responsibility for a
November suicide attack at a hotel in Amman, Jordan, and an August
attack against U.S. Navy ships in the Jordanian port of Aqaba, the
official said it is evident that al-Zarqawi wants to expand his
network worldwide.

The official said the report will emphasize the Bush administration's
increased attention to denying terrorists safe haven -- either
physically or in cyberspace. While a U.N. Security Council resolution
passed in 2001 requires all member states to deny safe haven to
terrorists and stop their ability to raise funds and acquire weapons,
it has not been fully implemented.

The countries on the State Sponsors of Terrorism list -- Cuba, Iran,
Libya, North Korea, Sudan and Syria -- will remain on the list.

The official said the Bush administration was "encouraged" by Libya's
progress, but there remained issues on "verification and compliance"
before Tripoli could be taken off the list.

Although Sudan has also cooperated with international anti-terrorism
efforts and met most U.S. benchmarks, the official said the Sudanese
government's direct involvement in the "horrors" in Darfur preclude
Khartoum from being taken off the list.

The official said the incidence of terrorist acts tallied in this
year's report will be up significantly because of new congressional
legislation mandating that domestic acts of terrorism be counted as
well.

For example, deaths as a result of sectarian attacks among Iraq's
ethnic groups will be counted, as will around 30,000 kidnappings by
Maoists in Nepal.








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