A joint hearing on these legislative proposals is particularly fitting because terrorism crosses so many jurisdictional and substantive domains. Only a crosscutting, unified approach will enhance federal counterterrorism efforts and help us avoid the false choices often posed by narrow legal and bureaucratic boundaries.

For example, the bills we consider today would appear to present mutually exclusive options regarding the focal point of federal counterterrorism policy. One approach would place that responsibility in the Executive Office of the President, leaving the current agency structure in place. The other would consolidate key homeland defense functions in a single cabinet-level department.

But for this hearing, these options would have been considered by separate committees. Instead, we asked our witnesses this afternoon to describe the relative merits and challenges of both concepts; in the hope that overall executive branch coordination and the role of a lead homeland defense agency can be clarified and strengthened.

In January, the Subcommittee wrote to Dr. Condoleezza Rice, the president's National Security Advisor, concerning the need for stronger leadership and a more coordinated federal effort against terrorism. She informed us a review of counterterrorism organization and policy is underway. But we needn't wait for the results of that review to begin consideration of proposals to correct longstanding, and widely noted, deficiencies in federal structure and coordination.

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Statement of Rep. Christopher Shays

April 24, 2001
Page 2

Previous subcommittee hearings led us to the conclusion the fight against terrorism remains fragmented and unfocused because there is no one in charge to develop a coordinated threat and risk assessment, articulate a national strategy, measure progress toward defined goals or discipline spending.

Legislation to restructure the federal effort to combat terrorism should address those

weaknesses.

Almost a decade after the dawn of a harsh new strategic reality - international terrorism aimed at our military and civilian personnel, abroad and here at home - these bills address today's equally stark realities: As a nation, we are not ready. As a government, we are not prepared.

Our witnesses this afternoon bring us the benefit of their substantial experience and expertise in this area. On behalf of the Government Reform Subcommittee on National Security, Veterans Affairs and International Relations, I thank them for their time and their testimony.

EMBASSY OF ISRAEL
WASHINGTON, D.C.

שגרירות ישראל וושינגטון

PREPARED TESTIMONY FOR THE JOINT HEARING ENTITLED:

COMBATTING TERRORISM:

OPTIONS TO IMPROVE THE FEDERAL RESPONSE
APRIL 24, 2001

Israel faces a number of main terrorist threats:

1. Palestinian terrorist activity of a radical religious-Islamic nature, with an
emphasis on suicide attacks (from Hamas and the Islamic-Jihad).

2. Terrorism from Islamic-Shiite organizations (Hizbullah) operating out of
Lebanon and receiving support from Iran and Syria.

3. Terrorism coming from Palestinian Authority territory, often inspired by
elements belonging to the Establishment and Palestinian Security (since
September 2000).

These terrorist activities jeopardize the peace process as well as regional stability.
Terrorism also has serious consequences in other areas, because of its potential to
lower national morale, disturb normal life on the Israeli home front and cause direct
and indirect damage to the Israeli economy.

The danger that terrorism poses to Israel is more acute as a result of the increased
technological capabilities of terrorist elements -- their access to advanced weapons
systems, dangerous materials and computers. The various organizations enjoy logistic
and financial support from Middle Eastern countries and elsewhere (including those
in the West), which gives them the ability to threaten Israeli and Jewish targets in
Israel and abroad.

It should be emphasized that, in the last decade, terrorism in the Middle East and
elsewhere has undergone significant structural and ideological changes. From leftist
roots, nourished by the Cold War, new-Marxist and anti-imperialist rhetoric, terrorism
has turned to extremist Islamic lines, taking its ideological inspiration, rhetoric and
logistic system from radical Islamic states.

Fundamentalist Islamic terrorism today rests on a number of axes:

1. Islamic terrorist movements or groups, acting against Israel as well as against
secular rule in Arab states, such as Hizbullah, Hamas, the Islamic Jihad,
Algema at Alislamia (Egypt), the Algerian Groups (GLA) and others, all of
which possess a wide-spread social and organizational base.

3514 INTERNATIONAL DRIVE N.W.• WASHINGTON, D.C. 20008 • TEL: (202) 364-5500 • FAX: (202) 364-5687 www.israelemb.org

2. Groups of Islamic and mercenaries, most of whom are veterans of the war in Afghanistan and willing to hire out their "service" to different countries. In this category may be included the organization “Aldaida" (the military base) of Asama Bin Laden, who has cells in countries bordering Israel (Lebanon, Jordan) as well as in PA territory.

3. Branches of terrorist movements in Arab countries, operating secretly in Europe and the US; an example is the gang led by Sheikh Abed Alrakhman and Said Nuseib, that operated in New Jersey and had connections with the terrorist Ramsey Yussef.

4. Islamic charitable and educational organizations in the West that are not necessarily purely terrorist groups. These organizations and associations are legitimate and raise funds for their educational institutions and mosques; however part of these funds often find their way into the pockets of terrorists and their families.

5. Although state support for terrorism is clever and seems, on the surface, to be less than it really is, Islamic states such as Iran, Afghanistan and Sudan supply ideological inspiration for Islamic terrorist groups as well as direct instruction, financing, training camps, intelligence information and the use of Embassy services for terrorist needs. To these states may be added radical Islamic states such as Syria, Iraq and Libya, which appear on the US State Department's list of states that support terrorism.

These axes are well connected and, as demonstrated in the attacks in Kenya and Tanzania inspired by Asama Bin Laden, they have the ability to penetrate states in distant corners of the world, such as Latin America (Argentina), Eastern Europe (Bosnia), the Far East (Philippines, China, India) and, as mentioned, Africa. The destructive psychological effect of terrorism makes it possible for fundamentalist terrorism to achieve, through isolated showcase attacks, considerable influence in the international arena.

ISRAEL'S STRUGGLE AGAINST THE TERRORIST THREAT

The focus of Israel's efforts to combat the threats described above is to prevent terrorist acts directed at Israeli targets in Israel and abroad; to strike at terrorists and at those who send and support them; to deter and bring to justice the perpetrators, and to damage the infrastructures and the capabilities of terrorist organizations in ever place at all times

Israel believes in the supreme importance of continuing to strive towards peace agreements in the Middle East, which will increase stability and lessen the motivation for terrorism. However, until such agreements come about, and also afterwards, it is important to:

1. Deter terrorism-supporting states from encouraging attacks, by preventing them from achieving international legitimacy.

2. Continue to demand, from elements negotiating with Israel, that they avoid encouraging terrorism or using it as a bargaining chip in the negotiations. On the contrary, these elements should be fighting terrorism, consistently and continually.

3. Avoid injuring the civilian population from whose midst the terrorists operate (in the territories and in Lebanon), concentrating instead on striking at the perpetrators of terrorism, its instigators and supporters.

4. Establish legal and intelligence cooperation, on an international and I regional level, with key countries in the international arena, the purpose of which would be to make terrorist activity more difficult by identifying and cutting off its sources of financing. In this context, Israel also lent its support and joined a series of international conventions on the subject of counter-terrorism.

Israel views close cooperation with the US as an essential element in the struggle against terrorism, and gives counter-terrorism high priority in the strategic cooperation between the two states. In April 1996, following the Sharm Conference, a memorandum of understanding was signed between the President of the Unites States and the Prime Minister of Israel, to increase counter-terrorism cooperation. The Joint Counter Terrorism Group operates as a political-strategic framework for broad professional cooperation on various tracks. This group holds discussions and ongoing activities in many areas: cutting off terrorist funding sources, legal cooperation, joint R & D, and realization of American aid to Israel ($100 million) for counter-terrorism.

Domestically, Israel engages in many activities aimed at enhancing its struggle against terrorism. For example:

1. The pursuit of legal avenues, legislation and regulations intended to limit the freedom of action of terrorists and their supporters and front line institutions connected to terrorist organizations. An example of this is an inter-ministerial team appointed to coordinate the efforts to stop the flow of funds to terrorist organizations.

2. More effective use of the resources invested in research and development related to counter-terrorism (also with the US), including development and purchase of advanced technologies for border crossings and technologies for identifying and locating terrorists.

3. Examining scenarios and making recommendations for the domestic preparations necessary in the event of non-conventional terrorist attacks or damage to computer infrastructures.

4. Informational and educational activities to reinforce the stamina of the Israeli public, including increasing public awareness and alertness, which in turn would help prevent terrorist incidents.

Areas of counter-terrorism responsibility in Israel: