In what he described as a "strike on the financial foundation"
of terrorists, President Bush yesterday warned the
international business community that the US would freeze the
US assets of companies found to be assisting Osama bin
Laden. And he issued an executive order naming individuals
and organisations which will immediately face seizure if traced
in the US.
In preparation for possible US military action Afghanistan's
hardline rulers claimed they had mobilised an additional
300,000 troops but defence analysts believe the Taliban is
capable of mustering only 45,000 trained soldiers.
As US military officials arrive for talks in Islamabad, Pakistan
pulled out its entire diplomatic staff from its embassy in the
Afghan capital, Kabul, but did not sever diplomatic relations.
The authorities also re-opened a border post at Torkham on
the north-west frontier to allow Afghan refugees to enter the
country.
Following Mr Bush's announcement, made on the White
House steps, it became clear, however, that the US was
adopting a two-pronged military and financial approach in its
response to the attacks in New York and Washington.
The Treasury now has unprecedented power to freeze US
assets of international businesses in punishment of activities
abroad, an extension of extra-territorial legislation than in the
past, when applied to firms doing business with Cuba, has
been opposed by US allies.
The President's spokesman, Mr Ari Fleischer, said, however,
they were facing a situation that was "entirely different to
anything faced before". Since September 11th, the level of
co-operation the US had been receiving had been
unprecedented, he said.
The executive order extends the range of Islamic terrorist
organisations and fronts covered by designation under
domestic legislation introduced by President Clinton in 1988.
Listing allows the US Treasury to seize assets and prohibits
banks from doing business for those designated. It also allows
the withholding of visitor visas.
In addition to bin Laden, some 12 specific terrorist leaders
were designated yesterday, including a doctor and the leader
of the Egyptian Islamic Jihad, Ayman al-Zawahiri (50), widely
believed to be his deputy and potential successor.
The latter's organisation, which joined in an alliance with al
Qaeda in 1998, is among 11 groups which are also listed.
They include militant Libyan, Uzbek and Yememi groups.
Al-Zawahiri, who is seen as providing an important intellectual
dimension to the al Qaeda leadership that complements bin
Laden's charismatic profile, has been involved with Muslim
extremism since the 1970s.
He is believed to have left Egypt in 1986, but remains one of
the country's most wanted men and has been sentenced to
death in absentia.
Three charitable organisations and one company, which are
alleged to channel cash to al Qaeda, are on the list.
Flanked by the Secretary of State, Mr Colin Powell, and the
Treasury Secretary, Mr Paul O'Neill, Mr Bush said: "Money
is the lifeblood of terrorist operations. Today, we're asking the
world to stop payment." He called the list "the financial
equivalent of law enforcement's most-wanted list."
The US measures, although unlikely to hit hard at bin Laden's
well hidden assets, will make it easier for Mr Powell to
persuade other states to follow suit.
He sees it as one of many fronts in a multifaceted campaign
where some states which may be reluctant to support
extensive military action may contribute in ways that me just as
effective.
In a speech on Russian television, President Putin said
Moscow would increase its support of Afghan opposition
forces and was prepared to supply anti-Taliban fighters with
weapons and military equipment.
"We are broadening co-operation with the internationally
recognised government of Afghanistan ," Mr Putin said. He
was referring to the government-in-exile of President
Burhanuddin Rabbani.
