Bush Launches Financial Strike Against Terrorist Networks

Sept. 24, 2001 -- As U.S. forces move into position near Afghanistan, the Bush administration announced it has dealt its first blow against Osama bin Laden and his terrorist network in the form of financial pressure.

"At 12:01 this morning a major thrust of our war on terrorism began with a stroke of a pen," President Bush said today from the White House Rose Garden. "We launched a strike on the global terrorist network."

Bush signed an executive order naming 27 specific terrorists and terrorist groups and granting the United States broad authority to seize all assets of those suspected in playing a role in the attacks. The order also promises to freeze U.S. assets of any government that does not cooperate in the cause to lock up all assets linked to terrorists.

Report: Bin Laden Calls for Action

Meanwhile, bin Laden — the main target of the financial order — reportedly released his own call to action today through Qatar's Al-Jazeera satellite television network. The message calls upon Pakistan's Muslims to fight against "the American crusade."

"I announce to you, our beloved brothers, that we are steadfast on the path of jihad [holy war] with the heroic, faithful Afghan people, under the leadership of Mullah Mohammed Omar," announcers said, reading from a statement they say was written by bin Laden. Omar is the leader of Afghanistan's ruling Taliban militia,which has harbored bin Laden since 1996 and has refused U.S. demands to turn over the indicted terrorist.

In Cairo, Sheik Ali Tantawi, of Al Az'har Mosque — an influential religious authority in the Arab world — reportedly issued a fatwa, or ruling, against joining a U.S. coalition and attacking Afghanistan or any other country without material evidence of bin Laden's involvement in the attacks.

Bush and Secretary of State Colin Powell confirmed today the government is preparing a report detailing evidence that will prove bin Laden was behind the attacks, but much of that report may remain secret.

"As we are able to provide information that isn't sensitive and isn't classified, we will do that," Powell told reporters from the Rose Garden.

Financial Front Broadened

Previously, only direct assets of alleged terrorists have been frozen. Under the new order, assets of supporters of terrorists may also be frozen. The United States will also freeze the assets of charities that are believed to have ties to terrorists, under the order. So far three such charities have been specified by the order but Bush said more will be named and added to the list in the near future.

In addition, the United States will have the authority to freeze any assets of a U.S. bank or any government that refuses to cooperate. Bush admitted most terrorists' assets exist outside the United States. In order to investigate possible terrorist funding in other nations, Bush said his administration will work with the United Nations and with leaders from the European Union and G-7/G-8 group of nations to develop ways of tracking funding outside U.S. borders. Some of those efforts may involve changing some banking laws in Europe, Bush said.

All U.S. efforts targeting terrorists' financial assets will be coordinated by a newly-named Foreign Terrorist Asset Tracking Center within the U.S. Treasury department. The new center, the president said, will investigate the financial structure of terrorist networks, follow their money trail and "freeze the money to disrupt their actions."

As officials pursued terrorist financing, legitimate trading on Wall Street took a promising turn. Stocks surged more than 300 points by midday today, following one of the worst weeks of trading since the Great Depression.

Forces Moving In

On the ground, in the air or on the way, U.S. forces are moving into position near Afghanistan.

Sources tell ABCNEWS that small teams of specially trained U.S. ground troops are in Tajikistan, a northern neighbor of Afghanistan.

In addition, at least two C-130 transport planes and several hundred U.S. troops reportedly arrived in Uzbekistan, also to the north of Afghanistan, on Sunday.

The president made clear today that he intends to issue orders to use these forces, saying, "I've asked our military to be ready for a reason."

The Bush administration is also taking measures to ensure that members of the reserves who have been called to action are not penalized for missing time at school or work. Secretary of Education Rod Paige today directed lenders in colleges and universities to provide members of the National Guard relief from their student loan obligations. And Labor Secretary Elaine Chao announced her department was launching an education campaign for employers to ensure that reserve members are re-employed in their previous jobs after completing service.

Washington may also have solidified a key regional ally in the war on terror. Kazakhstan President Nursultan Nazarbayev said today his nation would assist with "all the means it has at its disposal," according to Reuters.

Afghanistan's ruling militia, the Taliban, said this morning it was mobilizing an additional 300,000 troops for an expected holy war on the United States.

Taliban: We Don’t Know Where He Is

Bin Laden is said to be based in Afghanistan, where he and his associates control a worldwide terror network under an umbrella organization known as al Qaeda. The Taliban ambassador to Pakistan said the hard-line Islamic regime has been unable to locate bin Laden for the past two days.

Powell, Rumsfeld and several senior White House officials on Sunday dismissed Afghanistan's Taliban rulers' claim that they couldn't find bin Laden as "laughable."

"The Taliban do know where the al Qaeda organization is," Rumsfeld told reporters in Washington. "The fact that they say they don't is simply not credible."

Rumsfeld also confirmed the United States had lost contact with an unmanned reconnaissance plane over Afghanistan, but said that did not mean that it had been shot down. The Taliban claimed Friday they had shot down an unmanned plane. Rumsfeld did not say whether the plane was in Taliban hands.

Enlist Guerrillas, Hunt Bin Laden

Sources tell ABCNEWS that the special American ground troops will enlist the help of Afghan guerrilla fighters who have been waging their own longtime war with the Taliban. In addition, they will likely try to slip into the country and hunt for indicted terrorist Osama bin Laden, the prime suspect in terrorist attacks on America estimated to have left nearly 6,500 people missing or dead in the Sept. 11 attacks on the Pentagon and the World Trade Center.

Though air strikes are also anticipated, U.S. officials believe these special ground troops will be vital in the assault on terrorists. Government sources told ABCNEWS the CIA is establishing contacts and gathering intelligence in Afghanistan, and flying small unmanned spy planes over the region.

"Is it likely that an aircraft carrier or a cruise missile is going to find a person?" Defense Secretary Donald Rumsfeld asked reporters. "No, it's not likely. That isn't how this is going to happen."

Other U.S. forces were in the region, though officials would not say where. B-52 and B-1 bombers and additional forces and equipment were journeying to the region. Meanwhile, armed forces are on alert nationwide, with more armed reserves expected to be called in Nebraska, Wyoming and Colorado this week.

In other developments:

Bush and Canadian Prime Minister Jean Chretien met today and pledged their cooperation in the fight against terrorism. Responding to criticism that he failed to mention Canada during his address to Congress last Thursday, Bush said, "I didn't think it was necessary to praise a brother, after all we're talking about Canada."

The Vatican said today it would understand if the United States had to resort to force to protect its citizens, but it favors a non-violent solution and wants any action to be a response that targets terrorism, not Islam, according to Reuters news agency.

The number of missing in New York City following attacks on the World Trade Center increased by more than 100 to 6,453 on Sunday, although city officials said the number is subject to change.

President Bush held a ceremony at the presidential retreat at Camp David, Md., on Sunday to return the American flag to full staff for the first time since the attacks. The flag was also flying at full staff over the U.S. Capitol in Washington.

Bush on Saturday lifted U.S. sanctions against Pakistan and India, imposed on both countries in 1998 because of their nuclear testing. The move was seen as a reward for pledges to help the United States in its efforts against the Taliban. Powell, appearing on This Week, said he had recommended weeks ago that sanctions be reduced.

Also Saturday, the United Arab Emirates cut ties with the Taliban. Now, only two nations, Pakistan and Saudi Arabia, recognize the Taliban as the legitimate Afghan government.

The Taliban are building bunkers, installing anti-aircraft batteries and arming men in key border areas to defend against possible attack by the United States, witnesses and officials said.

Saudi Arabian officials, apparently concerned about possible strikes on a fellow Arab state, said the United States could not use a major Saudi air base for an offensive against terrorism.