New Target in War on Terror: Hamas

W A S H I N G T O N, Dec. 4 -- The Bush administration's financial war on terror has turned toward Hamas, the militant Palestinian group that claimed responsibility for the weekend's deadly suicide attacks in Israel.

The administration moved early this morning to freeze assets and accounts associated with what it describes as three front organizations and companies that funnel money to Hamas.

The main target is the Richardson, Texas-based Holy Land Foundation, a major fund-raiser for projects in the Palestinian territories, which raised $13 million last year. Also targeted are a bank and holding company based in the Palestinian territories, both of which are accused of having links to Hamas.

FBI and Treasury agents this morning raided Holy Land offices in San Diego, Paterson, N.J., Richardson, Texas, and Bridgeview, Ill.

Although it went into place at midnight, President Bush announced the move at a Rose Garden news conference with Attorney General John Ashcroft and Treasury Secretary Paul O'Neill.

"Our action today is another step in the war on terrorism. It'snot the final step," Bush said. "There are more terrorist networks of globalreach, and more front groups who use, who seek to support them. Thenet is closing. Today, it just got tighter."

Hamas already is on the Treasury Department's list of targeted organizations. The group took responsibility for suicide bombing attacks in Israel this weekend that killed 26 people and wounded more than 200.

White House officials say the suicide bombings this weekend in Israel spurred the administration to take this action, which one official added was designed to send a blunt message to Palestinian leader Yasser Arafat and other Arab leaders in the Middle East: "Now they knew we mean business."

"Hamas is guilty of hundreds of other deaths over the years,and just in the past 12 months, it killed two Americans," Bush said. "And today weact."

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In blunt language, Bush accused the Holy Land Foundation of funding the group.