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30–143PDF 2006

HEZBOLLAH’S GLOBAL REACH

JOINT HEARING

BEFORE THE

SUBCOMMITTEE ON 

INTERNATIONAL TERRORISM AND 

NONPROLIFERATION

AND THE

SUBCOMMITTEE ON THE MIDDLE EAST 

AND CENTRAL ASIA

OF THE

COMMITTEE ON 

INTERNATIONAL RELATIONS 

HOUSE OF REPRESENTATIVES

ONE HUNDRED NINTH CONGRESS

SECOND SESSION

SEPTEMBER 28, 2006

Serial No. 109–233

Printed for the use of the Committee on International Relations

(

Available via the World Wide Web: http://www.internationalrelations.house.gov/
(II)

COMMITTEE ON INTERNATIONAL RELATIONS 

HENRY J. HYDE, Illinois, Chairman 

JAMES A. LEACH, Iowa 

CHRISTOPHER H. SMITH, New Jersey, 

Vice Chairman 

DAN BURTON, Indiana 

ELTON GALLEGLY, California 

ILEANA ROS-LEHTINEN, Florida 

DANA ROHRABACHER, California 

EDWARD R. ROYCE, California 

PETER T. KING, New York 

STEVE CHABOT, Ohio 

THOMAS G. TANCREDO, Colorado 

RON PAUL, Texas 

DARRELL ISSA, California 

JEFF FLAKE, Arizona 

JO ANN DAVIS, Virginia 

MARK GREEN, Wisconsin 

JERRY WELLER, Illinois 

MIKE PENCE, Indiana 

THADDEUS G. MCCOTTER, Michigan 

KATHERINE HARRIS, Florida 

JOE WILSON, South Carolina 

JOHN BOOZMAN, Arkansas 

J. GRESHAM BARRETT, South Carolina 

CONNIE MACK, Florida 

JEFF FORTENBERRY, Nebraska 

MICHAEL MCCAUL, Texas 

TED POE, Texas 

TOM LANTOS, California 

HOWARD L. BERMAN, California 

GARY L. ACKERMAN, New York 

ENI F.H. FALEOMAVAEGA, American 

Samoa 

DONALD M. PAYNE, New Jersey 

SHERROD BROWN, Ohio 

BRAD SHERMAN, California 

ROBERT WEXLER, Florida 

ELIOT L. ENGEL, New York 

WILLIAM D. DELAHUNT, Massachusetts 

GREGORY W. MEEKS, New York 

BARBARA LEE, California 

JOSEPH CROWLEY, New York 

EARL BLUMENAUER, Oregon 

SHELLEY BERKLEY, Nevada 

GRACE F. NAPOLITANO, California 

ADAM B. SCHIFF, California 

DIANE E. WATSON, California 

ADAM SMITH, Washington 

BETTY MCCOLLUM, Minnesota 

BEN CHANDLER, Kentucky 

DENNIS A. CARDOZA, California 

RUSS CARNAHAN, Missouri 

THOMAS E. MOONEY, SR., Staff Director/General Counsel 

ROBERT R. KING, Democratic Staff Director 
(III)

SUBCOMMITTEE ON INTERNATIONAL TERRORISM AND NONPROLIFERATION

EDWARD R. ROYCE, California, Chairman 

PETER T. KING, New York 

THOMAS G. TANCREDO, Colorado 

DARRELL ISSA, California, Vice Chairman 

MICHAEL MCCAUL, Texas 

TED POE, Texas 

JERRY WELLER, Illinois 

J. GRESHAM BARRETT, South Carolina 

BRAD SHERMAN, California 

ROBERT WEXLER, Florida 

DIANE E. WATSON, California 

ADAM SMITH, Washington 

BEN CHANDLER, Kentucky 

DENNIS A. CARDOZA, California 

RUSS CARNAHAN, Missouri 

TOM SHEEHY, Subcommittee Staff Director 

DON MACDONALD, Democratic Professional Staff Member 

EDWARD A. BURRIER, Professional Staff Member 

GENELL BROWN, Staff Associate

SUBCOMMITTEE ON THE MIDDLE EAST AND CENTRAL ASIA

ILEANA ROS-LEHTINEN, Florida, Chair 

STEVE CHABOT, Ohio, Vice Chair 

THADDEUS G. MCCOTTER, Michigan 

JOHN BOOZMAN, Arkansas 

CONNIE MACK, Florida 

JEFF FORTENBERRY, Nebraska 

JO ANN DAVIS, Virginia 

MIKE PENCE, Indiana 

KATHERINE HARRIS, Florida 

DARRELL ISSA, California 

GARY L. ACKERMAN, New York 

HOWARD L. BERMAN, California 

JOSEPH CROWLEY, New York 

SHELLEY BERKLEY, Nevada 

ADAM B. SCHIFF, California 

BEN CHANDLER, Kentucky 

DENNIS A. CARDOZA, California 

RUSS CARNAHAN, Missouri 

YLEEM POBLETE, Subcommittee Staff Director 

YEVGENY GUREVICH, Professional Staff Member 

DAVID ADAMS, Democratic Professional Staff Member 

LEE COHEN, Staff Associate 

(V)

C O N T E N T S 

Page

WITNESSES 

Mr. Frank C. Urbancic, Jr., Principal Deputy Coordinator, Office of the Coordinator for Counterterrorism, United States Department of State ................. 9

Mr. John G. Kavanagh, Section Chief, International Terrorism Operations 

Section II, Counterterrorism Division, Federal Bureau of Investigation ........ 15

Eitan Azani, Ph.D., Senior Researcher, Institute for Counterterrorism, 

Herzliya Interdisciplinary Center, Herzliya, Israel .......................................... 34

Mr. Christopher Hamilton, Senior Fellow, Counterterrorism Studies, The 

Washington Institute for Near East Policy ........................................................ 62

Mr. Ilan Berman, Vice President for Policy, American Foreign Policy Council . 67

LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING 

Mr. Frank C. Urbancic, Jr.: Prepared statement .................................................. 11

Mr. John G. Kavanagh: Prepared statement ........................................................ 17

Eitan Azani, Ph.D.: Prepared statement ............................................................... 37

Mr. Christopher Hamilton: Prepared statement ................................................... 63

Mr. Ilan Berman: Prepared statement .................................................................. 69

APPENDIX 

The Honorable Dennis A. Cardoza, a Representative in Congress from the 

State of California: Prepared statement ............................................................ 77

The Honorable Gary L. Ackerman, a Representative in Congress from the 

State of New York: Prepared statement ............................................................ 77

(1)

HEZBOLLAH’S GLOBAL REACH 

THURSDAY, SEPTEMBER 28, 2006

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON INTERNATIONAL TERRORISM

AND NONPROLIFERATION, AND

SUBCOMMITTEE ON THE MIDDLE EAST

AND CENTRAL ASIA,

COMMITTEE ON INTERNATIONAL RELATIONS, 

Washington, DC. 

The Subcommittees met, pursuant to notice, at 10:33 a.m. in 

room 2172, Rayburn House Office Building, Hon. Edward R. Royce 

(Chairman of the Subcommittee on International Terrorism and 

Nonproliferation) presiding. 

Mr. ROYCE. This joint hearing of the International Terrorism and 

Nonproliferation Subcommittee and the Middle East and Central 

Asia Subcommittee will come to order. 

The title of the hearing today is ‘‘Hezbollah’s Global Reach.’’ The 

Hezbollah threat is grave, indeed. As the secretary general of 

Hezbollah, Hassan Nasrallah, has said, ‘‘Death to America is not 

a slogan. For us, death to America is a policy, a strategy, and a 

vision.’’ As our former Deputy Secretary of State, Richard Armitage 

declared in 2002, ‘‘Hezbollah may be the A-Team of terrorists and 

maybe al-Qaeda is actually the B-Team.’’ Hezbollah is lethal, and 

it is magnified by the support that it receives from state sponsors 

of terrorism, particularly Iran. That is what gives it its capability 

and makes it so lethal. 

Before September 11th, Hezbollah—which means ‘‘Party of 

God’’—was responsible for more American deaths than any other 

terrorist group. This included the 1983 suicide attack on the 

United States Marine barracks in Lebanon that killed 241 Americans and ushered in the modern age of suicide attacks, and it includes the 1985 attacks on TWA Flight 847 and the 1996 attack 

on Khobar Towers. 

Hezbollah has again managed to seize the world’s attention. I 

was in Haifa this summer, as it rained rockets, as Hezbollah struck 

Haifa and much of northern Israel with some 4,000 indiscriminately fired rockets in these terrorist attacks. When I was in Haifa, 

they were firing rockets not only at civilian populations; they also 

attempted to hit the hospital in Haifa. 

I had an opportunity to see one of those rockets, and to pick up 

the shrapnel with 50,000 ball bearings in every one of them, these 

rockets are intended to maximize civilian casualties. Haifa is a 

very cosmopolitan city. In the hospital there, I saw Arab Israelis, 

Druz Israelis, Jewish Israelis, all recovering. There were around 
2

500 people in that one hospital due to rocket attacks. Today, the 

Administration will testify that Iran and Syria have not stopped 

arming Hezbollah, despite U.N. Security Council Resolution 1701. 

Hezbollah is not just a menace to Israel, Lebanon and the region. 

According to the State Department’s terrorism report, Hezbollah 

has ‘‘established cells in Europe, in Africa, in South America, in 

North America, and in Asia.’’ One witness will tell us that 

Hezbollah’s organizational and logistical network exists today in 40 

countries. This includes a significant presence in our own hemisphere, in the tri-border region of Paraguay, Argentina, and Brazil. 

The network operates in West Africa, where Hezbollah has been active trading ‘‘blood diamonds,’’ an issue the Africa Subcommittee 

explored when I chaired it. 

Many Americans may be surprised to learn that Hezbollah’s 

global reach includes significant activities on U.S. soil. A recent 

news report asserted that the FBI had more than 200 active cases 

involving suspected Hezbollah members at one point last year. The 

vast majority of this activity has been linked to fundraising, specifically to attempts to use Visa cards and MasterCards for fraudulent 

funds to support Hezbollah along with other criminal fundraising 

activities. We must be concerned that this existing network could 

be used, should Hezbollah, perhaps prodded by Iran, decide to 

strike inside our country. 

A particular focus of this Subcommittee has been Hezbollah’s 

ability to enter the United States. Mahmoud Kourani, who was indicted in 2004 for being a ‘‘member, fighter, recruiter, and fundraiser for Hezbollah,’’ having trained in Iran, paid $3,000 to be 

smuggled into Mexico. He then paid a ‘‘coyote’’ to travel in the 

trunk of a car across the border of my state, California, and up to 

Dearborn, Michigan, where he began efforts to raise funds to send 

Hezbollah back to the organization. Kourani’s brother is a top 

Hezbollah militia leader. Further, Salim Boughader Mucharrafille, 

a Lebanese-Mexican operating out of Tijuana, smuggled at least 

200 individuals, including a large number of Hezbollah sympathizers, into the United States. Even after the 9/11 Commission report on terrorist travel highlighted this link between human smugglers and terrorists, border security efforts remain woefully neglected. 

Border security must be a pressing concern because the Islamist 

terrorist threat facing us is so deadly. Hezbollah is sophisticated. 

It is well armed. It possesses unmanned aerial vehicles and over 

10,000 Katyusha rockets. It possesses cruise missiles, as we know 

because one was fired against an Israeli ship. It also has mediumrange, Zelzal missiles and its own television station. Many of 

Hezbollah’s weapons and training are courtesy of Iran. There are 

reports that Iran will soon transfer sophisticated, shoulder-fired 

missiles to Hezbollah. These are the types of missiles that can 

knock down a jetliner. A nuclear-armed Iran, should the day come, 

would be even more bold in supporting Hezbollah’s activity in the 

Middle East and beyond. 

Hezbollah may be the ‘‘A-Team,’’ and maybe it is only the ‘‘BTeam’’ of terrorism, but in today’s era of proliferating WMD, even 

a C-Team is a worry, and Hezbollah certainly makes that grade. 
3

I will now turn to Ranking Member Sherman for any opening 

statement, and then we will turn to the Chair of the Middle East 

and Central Asia Subcommittee, Representative Ileana RosLehtinen, for her statement. We will now go to Mr. Sherman. 

Mr. SHERMAN. Thank you, Mr. Chairman and Chairwoman RosLehtinen, for holding these hearings to look at a terrorist organization which is second only to al-Qaeda in the number of deaths of 

Americans it has called and, as the Chairman points out, may very 

well be the A-Team of terrorism. 

In my statement, I am going to be relatively wide ranging. Some 

will think, why is Sherman off on some tangent? But the theme of 

this statement is that we cannot prevail against Hezbollah in isolation from the global war on terrorism and that we cannot prevail 

in the global war on terrorism unless we think globally about every 

aspect of our economic and diplomatic policy. 

If you think we are strong enough to say, win the global war on 

terrorism without concerning ourselves with the annoyance of having to say, how does our policy toward Russia or China or Paraguay relate to that? If you think that we can let most of the desks 

at the State Department go on about their business unenlisted on 

the global war on terrorism and still prevail, then you have an excessive view of American diplomatic and economic and military 

power. 

Turning to Hezbollah, we have seen its ability not only to displace hundreds of thousands of Israelis but to also disrupt the politics of Lebanon and to shake the world and get the attention of the 

world. They did so just at the time when Iran needed a distraction 

from its nuclear program, and it is not surprising that Hezbollah, 

not only funded by Iran but created by Iran, would step forward 

and act in Iran’s interest. 

Just days before the July 12 kidnapping of two IDF soldiers, 

Iran’s President declared that there would soon be an explosion of 

anger against Israel. Indeed, there was, and, of course, the result 

was that, at the G–8 meeting, they spent their time focusing on 

Lebanon and not on Iran’s nuclear program. The lesson is clear: At 

a time and a place of Iran’s choosing, Hezbollah will strike out in 

Iran’s interest. 

Now, there is the dispute over what is terrorism, and what is an 

appropriate or disproportionate response to terrorism? Let me just 

say that, as the Chairman pointed out, Hezbollah’s actions were designed, as their purpose, to kill as many civilians as possible. That 

is in stark contrast to United States, Israel, and other civilized nations’ military actions in which the effort is to achieve a military 

objective, and any civilian casualties are an unfortunate and regretted byproduct. 

Nasrallah made a point of apologizing for civilian deaths caused 

by Hezbollah, the two Muslim civilian deaths caused by Hezbollah 

rockets. In doing so, he made it clear that he had no apologies but 

nothing but rejoicing and glee whenever his rockets were able to 

kill civilians of any other religion. 

Now, turning toward Iran, we have had a failed policy over the 

last two Administrations. I want to applaud Ileana Ros-Lehtinen 

for her bill, H.R. 282. She fought valiantly for the strongest bill we 

could get, but, frankly, the Administration would veto any bill that 
4

was not absolutely consistent with maintaining our current failed 

policy. In particular, they have recreated the circumstance where, 

when there is investment in the Iranian oil fields, the Administration will simply ignore it. 

The Iran-Libya Sanctions Act has a process for reviewing and imposing sanctions against Iran, a country that, as I pointed out, is 

the chief sponsor of Hezbollah, and that last Administration and 

this one has a policy of simply saying, Oh, well, it is in the Wall 

Street Journal, but we do not have any information about any deal 

to invest in Iranian oil fields. 

This is on top of our imports from Iran, on top of the Administration allowing American corporations to continue to do business 

with Iran through their subsidiaries, our acquiescence to loans 

from the World Bank to Iran. The litany goes on and on. Khatami 

just completed his five U.S. city, terrorism-promotion tour financed 

by U.S. taxpayers. We provided the security. 

When the Rolling Stones tour America, they have to pay their 

own costs, but when Hatami tours America, we provide the security. The State Department does. Now, contrast that to the level of 

security provided the last time there were American diplomats in 

Tehran, and you get a sharp irony. 

The biggest failure we have had in the global war on terrorism 

is our failure to get the U.N. Security Council on our side on issues 

ranging from Hezbollah to, most importantly, the Iranian nuclear 

program. Why have we failed? Because we refuse to engage in linkage. That is to say, when we send our diplomats to Moscow and 

ask for their help, we talk only about the Hezbollah issue, the Iran 

issue, and we never link it to anything Russia cares about, like 

Abkhaza, Moldova, Chechnya. The result is that the Russians have 

no reason to agree with us since we indicate no indication that will 

ameliorate our policies toward things the care about. 

So due to inertia, and without even consulting the American people, the State Department has made the decision that the guy on 

the Moldovia desk gets to do whatever he has been doing for the 

last 10 or 20 years, and the guy on the Abkhaza desk or the Georgia desk gets to do whatever he is doing. We are not going to inconvenience them or ruffle their feathers by asking them to change 

their policies in order to get Russia on our side in the global war 

on terrorism. 

Likewise, with China. With China, we are confronted with the 

issue of how do we respond to their legally questionable currency 

manipulation? There have been tens of thousands of pages written 

on that issue. This city, our capital city, Washington, is controlled 

by the huge, profit-making importers, who have prohibited anybody 

from raising the question: Should our response to Chinese currency 

actions be an opportunity to get China on our side in the global 

war on terrorism? 

And so, as a result, China makes its policies toward Iran based 

on its energy concerns, based on its joy at our discomfort, based on 

the certain knowledge that Iran and Hezbollah are problems for 

America more than they are problems for China, and in the absolute knowledge that their access to the United States economy is 

not an issue. 
5

We have to think about how to reshape our policy toward every 

country in the world and how to make the concessions that we can 

afford to make in order to get support on the global war on terrorism, and as long as our policies in other areas of the world fail 

to get Russia, China, and others on our side, then we will be holding hearings here talking about why we failed to stop Iran from developing nuclear weapons and Hezbollah from having thousands of 

missiles. I yield back. 

Mr. ROYCE. Thank you. I want to recognize Chairwoman Ileana 

Ros-Lehtinen, whose Subcommittee has been working hard to analyze the threat of Iran to the United States, and then we will go 

to Ranking Member Ackerman, and, without objection, the other 

opening statements will be put in the record, and we will go to the 

witnesses. Chairwoman. 

Ms. ROS-LEHTINEN. Thank you, Mr. Royce. I would like to thank 

the witnesses for testifying today on this very important hearing, 

and I would also like to thank my colleague, my friend, Ed Royce, 

the Chair of the Subcommittee on International Terrorism and 

Nonproliferation for holding this session as a joint effort with our 

Subcommittee on the Middle East and Central Asia. 

Today’s hearing builds upon a recent briefing that the Middle 

East Subcommittee held with the Office of the Director of National 

Intelligence on Iran, Syria, and Lebanon, where the Hezbollah connection to these states was raised. 

Hezbollah has been a malicious presence and a threat to societies 

throughout the world since its establishment in the 1980s. The 

group’s deadly activities have their origins in the Middle East. On 

April 18, 1983, an explosive-laden van was driven by a homicide 

bomber, rammed into our Embassy in Beirut, killing 63, including 

17 Americans, and wounding over 100. 

Six months later, on October 23, 1983, a truck bearing the equivalent of six tons of TNT smashed into the barracks that housed the 

United States Marines in Beirut. As a result, 241 American servicemen died that day, as did 58 French paratroopers targeted in a 

near simultaneous attack nearby. At least six Lebanese civilians 

were killed as well. It was the single deadliest day for U.S. Marines 

since the Battle of Iwo Jima and remains the deadliest post-World 

War II attack on Americans overseas. U.S. agencies have determined that Hezbollah was behind both attacks. 

More recently, Hezbollah has adopted the cruel and cowardly tactic of targeting Israeli civilians in their homes, firing thousands of 

rockets indiscriminately toward villages, towns, and cities in northern Israel, as well as using Lebanese civilians as human shields. 

But Hezbollah has not been limited to the Middle East for its 

murderous activities. On March 17, 1992, a pickup truck driven by 

a homicide bomber slammed into the Israeli Embassy in Buenos 

Aires. The blast took the lives of 29 and wounded over 200, most 

of them citizens of Argentina. A nearby Catholic church and a 

school building were destroyed as well. 

Two years later, on July 18, 1994, a van containing powerful explosives was driven into the Amia Jewish Community Center of 

Buenos Aires, killing 85 and wounding over 300. 

These two were carried out by Hezbollah. 
6

News reports also referred to Hezbollah’s supporters conducting 

black market activities in parts of Central and South America. To 

address increasing reports of Islamic terrorist activities in the 

Western Hemisphere, I introduced a resolution recognizing the 

threat that these entities, their supporters, and their financiers 

pose to the United States and our allies in our hemisphere while 

acknowledging the efforts undertaken thus far by some governments in the region to deny the use of their territory to Islamic terrorist organizations. 

The resolution also urges the President to direct our representative of the Organization of American States, the OAS, to seek support for the creation of a task force to assist governments in the 

region in fighting the proliferation of Islamic terrorists. It urges 

OAS members to designate Hezbollah has a terrorist entity, and 

the resolution was overwhelmingly adopted by the House in June 

of this year, and we hope that this and many other efforts undertaken will refocus our efforts and our strategies to help prevent an 

escalation of the threat. 

I look forward to hearing Mr. Kavanagh’s assessment of 

Hezbollah’s activities in the tri-border area of South America, as 

well as the steps being take to confront these operations. Hezbollah 

operatives continue to spread their venom in Europe, where the 

group’s terrorist infrastructure and fundraising apparatus are alive 

and well. 

It is of grave concern that the EU continues to oppose placing 

Hezbollah on its terrorist list after seeing all that the terrorist 

group has done. In fact, the EU’s foreign policy chief, Javier 

Solana, has stated that there is no sufficient data to determine 

whether Hezbollah can be included in the list of terrorist organizations. 

In the aftermath of the recent conflicts in the Middle East, where 

Hezbollah initiated the attacks against Israel and violated not just 

Israeli territory but Lebanese sovereignty, causing much death and 

destruction, the EU should immediately reconsider its policy toward Hezbollah. 

When it comes to Hezbollah, one cannot be on the sidelines and 

expect the threat to disappear on its own. 

Hezbollah activities have even reached the United States. In 

2002, two Lebanese men were convicted of financing Hezbollah 

with $2 million in illegal cigarette sales in the United States. We 

must never forget who is behind Hezbollah and on whose behalf its 

twisted actions are taken. 

The recent conflict in Lebanon, triggered by an unprovoked attack against Israel by Hezbollah, proved exactly how intensely involved Iran is in supporting Hezbollah with weapons and ideology. 

During the conflict, the Iranian Revolutionary Guard actively participated in Hezbollah’s terrorist activities in southern Lebanon, 

and all evidence indicates that vast amounts of Hezbollah’s weapons, including long-range missiles, were provided by Iran. 

I would be interested to hear from the witnesses about their assessment of the strength, the capabilities, and the image of 

Hezbollah in the aftermath of the recent conflict. 

Hezbollah draws its bitter hatred, its poisonous ideology, its resources, and its arms from Iran. The Iranian regime has poured 
7

hundreds of millions of dollars into Hezbollah with the express purpose of harming Americans, Israelis, and other Western civilians 

and further destabilizing an already troubled Middle East. 

On February 12, 2003, the director of the Central Intelligence 

Agency, George Tenet, stated this about Hezbollah: ‘‘An organization with capability and worldwide presence, it is al-Qaeda’s equal, 

if not a far more capable organization.’’ He added: ‘‘They are a 

notch above in many respects, in terms of their relationship with 

the Iranians and the training they receive, which puts them in a 

state-sponsored category with a potential for lethality that is quite 

great.’’

One can only imagine the untold horrors that Hezbollah may 

someday perpetrate, should its patron state achieve its coveted goal 

of nuclear weaponry. 

We just intensify our efforts to effectively eradicate the 

Hezbollah threat and the hateful ideology that drives it. 

I, once again, thank Chairman Royce for holding this hearing, 

and I thank the witnesses for appearing before us. Thank you. 

Mr. ROYCE. Thank you, Chairwoman. 

We will go now to Mr. Ackerman. 

Mr. ACKERMAN. I want to thank the Chairs for organizing this 

hearing. Hezbollah’s emergence, not only as a Shia militia and a 

political party, not only as an international terrorist organization, 

but as a strategic proxy for the Iranian theocracy, Hezbollah is 

surely worthy of the attention of this Congress, and I am very 

pleased that we are having a hearing exclusively on Hezbollah before this Congress adjourns. 

The Hezbollah threat, however, is not new. Hezbollah has been 

designated as a terrorist organization by the State Department 

since 1995 and has been on the list of specially designated, global 

terrorist organizations since 2001. 

More Americans have died at the hands of Hezbollah than any 

other terrorist group outside of al-Qaeda. The August war, which 

resulted in hundreds of innocent lives lost and billions of dollars of 

destruction, was just the latest atrocity for which Hezbollah bears 

responsibility. 

Reciting Hezbollah’s barbaric and bloody history, denouncing its 

philosophy of hatred and violence, and detailing its subservience to 

Iran and subversion of Lebanon’s sovereignty, though appreciable 

for the satisfaction of condemning truly vile behavior, is not what 

we are here to do today. 

Our problem is not insufficiency of rhetoric or even, atypically, 

of understanding. Neither Hezbollah’s capabilities nor its wickedness are in dispute or doubt. 

Our problem is, again and again and again, one of strategy, of 

developing a plan for applying available means to achieve desired 

ends. 

So we may ask, what resources should the United States have 

at its disposal to address the challenge posed by Hezbollah? Ideally, the United States should have strong alliance relationships 

built on a shared vision for achieving international security. We 

should have a singular international prestige built upon our position as not only the richest and strongest nation but also the leading advocate for international institutions and norms of behavior. 
8

We should have the public support of the most important Arab 

states, built upon a shared appreciation of the Hezbollah threat to 

regional peace and stability. 

Five years after 9/11, we should have broad, international consensus on how to define and deal with terrorism in general. We 

should be militarily unencumbered or, at least, be able to generate 

robust and capable forces for any prospective conflict, and, of 

course, we should have confidence in the accuracy and completeness of our intelligence. 

As anyone who has read a newspaper in the past year knows, we 

have none of these, not one of them. Our reputation is in tatters. 

Right now, Arab leaders would rather have a photo-op with a child 

molester than with the President of the United States. Instead of 

building a common front against madmen who demand the entire 

Middle East be stuffed back into a straitjacket of religious dogmatism, we have, by virtue of our own faith-based, foreign policy, 

set the entire region against us. 

In the American version, we declare our most fervent hopes and 

prayers to be facts, and then we wait for them to come true. Thus, 

we have the self-executing roadmap and the endorsement of Palestinian elections which included Hamas. Thus, we have our failure 

to plan for Iraqi reconstruction or to consider the implications of 

dissolving the Iraqi Army or firing all of the members of the Ba’ath 

Party or of trying to occupy a country the size of California with 

too few troops. 

Thus, we have the necessity of subcontracting to the EU–3 the 

question of Iran’s nuclear weapons program and to China, North 

Korea’s nuclear program. 

Thus, too, with Hezbollah, we find our high hopes for the Security Council Resolution 1701 already foundering, with UNIFIL 

commanders proudly declaring their intention to do nothing that 

would frustrate Iran or annoy Syria or discomfort Hezbollah. 

Should they encounter weapons in proscribed areas or arms 

being smuggled, what will they do? Well, they will consult with the 

Government of Lebanon, and who sits in the Government of Lebanon? Hezbollah. As prayer is our plan, we had better start praying a little harder. 

No President gets to operate in a perfect world, and as our secretary of defensiveness has declared, ‘‘You go to war with the army 

you have, not the army you want.’’ But clearly, by virtue of the 

choices that we have made and the priorities that we have chosen, 

we are much worse off now than we were 5 years ago. We have less 

acceptability, less flexibility, less capacity, less capability, and, 

most of all, less credibility. 

In light of these unfortunate conditions, none of which was inevitable, I am looking forward to hearing from our distinguished witnesses as to what options remain available to us for dealing with 

the threat of Hezbollah. Thank you, Mr. Chairman. 

Mr. ROYCE. Thank you. We will go first to Mr. Frank Urbancic, 

the principal deputy coordinator, Office of the Coordinator for 

Counterterrorism, at the State Department. He has served as 

Charge ́ and Deputy Chief of Mission at the United States Embassy 

in Kuwait. He has specialized in East European, Middle Eastern, 

and African affairs at the U.S. Mission to the United Nations, and 
9

Mr. Urbancic has extensive experience in multilateral diplomacy 

and antiterrorism. 

Then we will go to Mr. John Kavanagh. He has been a special 

agent with the Federal Bureau of Investigation since 1989, and is 

currently serving as section chief of the International Terrorism 

Operations Section II, Counterterrorism Division. Special Agent 

Kavanagh was previously with the FBI as assistant special agent 

in charge of the FBI Cleveland Division and on-scene commander 

in Baghdad, Iraq. Mr. Kavanagh has served as an assistant district 

attorney in New York and was a captain in the United States Marine Corps. 

We appreciate both of you gentlemen testifying today. Mr. 

Urbancic, if you will summarize your comments to 5 minutes, that 

would be great. We have your written testimony. We are going to 

put that in the record. 

Mr. URBANCIC. I will keep it as short as I possibly can. 

Mr. ROYCE. Thank you. 

STATEMENT OF MR. FRANK C. URBANCIC, JR., PRINCIPAL 

DEPUTY COORDINATOR, OFFICE OF THE COORDINATOR 

FOR COUNTERTERRORISM, UNITED STATES DEPARTMENT 

OF STATE 

Mr. URBANCIC. Chairman Royce, Chairwoman Ros-Lehtinen, and 

Congressman Sherman, Congressman Ackerman, and distinguished Members of the Subcommittees, I thank you very much for 

the opportunity to come to speak with you today, and, as you requested, I will speak as quickly as I can and try to have as much 

time for you to have interaction as possible. 

We do know that Hezbollah is a terrorist organization. It was 

formed in 1982 in response to the Israeli invasion of Lebanon. It 

is closely allied with Iran and often acts at Iran’s behest. It also 

can and does act independently. Hezbollah has been a strong ally 

in helping Syria advance its political objectives in the region. It 

promotes Shia interests within the Lebanese political system, and 

it is an exemplar for Shia communities throughout the region. 

Hezbollah focuses a majority of its efforts on ending the Israeli 

occupation of Lebanon. It also supports a variety of violent, antiWestern groups, and, as Chairman Royce noted, prior to 9/11, 

Hezbollah was responsible for more American deaths than any 

other terrorist group in the world. 

It has a wide, increasing global reach, with an ability to harm 

U.S. and other Western interests across the continents. As recently 

seen, its rhetoric targets the United States for our alleged complicity with Israel. Hezbollah’s recent actions also demonstrate the 

destabilizing effect it has on the region. 

Hezbollah, Iran, and Syria’s relationship can probably best be described and characterized as symbiotic. Iran and Syria cooperate 

with each other and with Hezbollah to supply funds, arms, and 

training for, and to facilitate travel by, Hezbollah members. 

Hezbollah continues actively to advance interests within the Lebanese political system that coincide with Syrian and Iranian interests. Its actions consistently benefit both Tehran and Damascus. 

We believe that Iran’s support for Hezbollah continued throughout the recent Hezbollah-Israeli conflict, and we believe that 
10

Hezbollah’s decision to exacerbate the conflict simply could not 

have happened without at least tacit support from Tehran. 

We have made progress in impeding Iran’s financial support for 

Hezbollah and in undermining its financial network. Treasury and 

State Department teams have traveled to Europe, the Middle East, 

and Asia to meet with banking officials there to enlist their support 

in efforts to combat terrorism and to cut off Iran’s support for terrorist groups like Hezbollah. 

On September 8, we and the Treasury Department announced 

that we will prevent Bank Saderat from gaining access to the U.S. 

financial system. We have also taken active steps to cut off 

Hezbollah’s financial support from Iran and others, including by 

designating the Islamic Resistance Support Organization, under 

U.S. Executive Order 13224, which freezes that organization’s assets under U.S. jurisdiction. 

Hezbollah in Lebanon maintains the only significant armed militia in the country, despite the requirements under UNSCR 1559 

that it be disarmed. We believe that UNSCR 1701 will strengthen 

1559 and assist the Lebanese Armed Forces and UNIFIL troops in 

interdicting weapons shipments coming into Lebanon intended for 

Hezbollah. The Government of Lebanon will need to address the 

ability of Hezbollah to re-arm, and this is a problem for sure. 

For the moment, Hezbollah appears to have lowered its military 

profile in the south. However, we are unable to assess whether this 

is primarily motivated by domestic political concerns, the UNIFIL 

presence, or losses suffered during the recent conflict. We remain 

wary that even with the increasing presence of the Lebanese Army 

and international troops in the south, Hezbollah will retain a potentially strong military capability in southern Lebanon and its 

ability to receive assistance from Syria and Iran. 

Looking globally, Hezbollah’s support network extends into the 

Middle East, where it performs various fundraising activities. It 

has supported terrorist activities in the Palestinian territories since 

at least 2000 by providing financial, training, and logistical support 

to Palestinian Islamic Jihad and other Palestinian terrorist groups. 

Although there is little credible evidence of operational Hezbollah 

cells in Latin America currently, Hezbollah does have supporters 

and sympathizers throughout the Arab and Muslim communities in 

that region, and these are involved primarily in fundraising. 

Hezbollah’s supporters and sympathizers are also involved in a 

number of illegal activities, as has been mentioned by several 

Members of the Subcommittees. Hezbollah receives a significant 

amount of financing from the Shiite diaspora of West Africa and 

Central Africa. I myself have served in Freetown, and I know of 

those connections, and the diamond trade is a very difficult one to 

get a handle on. 

The diaspora is active in West Africa’s commercial sector beyond 

the diamond trade as well. Contributions there are often in the 

form of religious donations and paid in cash—they are difficult to 

track—and collected by Hezbollah couriers transiting the region. 

We are working actively—I can assure you of that—to address 

this threat, but countering these terrorist financing networks will 

be a challenge, and will require significant resources and time. One 
11

way to do so is via terrorist designations, and we have been active 

in that, as several of you have already mentioned. 

I will cut my remarks on those just a little short, simply in the 

interest of time, but I will confirm that Hezbollah presents a very 

serious challenge to us all. Where we can act effectively to stem its 

activity is with or through the close cooperation of our allies. We 

concur completely with several of the comments that the Members 

have made. 

In doing so, U.S. Ambassadors lead interagency country teams 

around the world that recommend strategies using all instruments 

of U.S. statecraft to help host nations understand the threat and 

to strengthen their political will and capacity to counter it. 

I can confirm to you also that this is an entirely new strategy 

that we have developed. It did not exist in the last 12 months, and 

it is another way that we are looking to increase our effectiveness 

in countering the terrorist threat globally. 

Another tool is this Regional Strategic Initiative, which is designed to establish flexible regional networks of interconnected 

country teams on a regional basis. We work with Ambassadors and 

interagency representatives in key terrorist theaters of operation to 

assess the threat and to devise collaborative strategies, actional initiatives, and policy recommendations. This strategy is aimed over 

the long term. Over time, our global and regional operations will 

reduce the enemy’s capacity to harm us and our partners while 

local security and development assistance will build our partners’ 

capacity. 

This completes the formal part of my remarks, but I welcome 

very much the opportunity to discuss with you and take your questions. 

[The prepared statement of Mr. Urbancic follows:]

PREPARED STATEMENT OF MR. FRANK C. URBANCIC, JR., PRINCIPAL DEPUTY COORDINATOR, OFFICE OF THE COORDINATOR FOR COUNTERTERRORISM, UNITED STATES

DEPARTMENT OF STATE

Chairman Royce, Chairwoman Ros-Lehtinen, Congressman Sherman, Congressman Ackerman, distinguished Members of the Subcommittees, thank you for the opportunity to testify today on Hizballah, its ambitions, capabilities and global reach. 

I will summarize my formal written statement and ask that you include my full testimony in the record. 

Hizballah’s Origins, Aims and Ambitions 

Formed in 1982 in response to the Israeli invasion of Lebanon, this Lebanesebased radical Shia group takes its ideological inspiration from the Iranian revolution and the teachings of the late Ayatollah Khomeini. The group follows the religious guidance of Khomeini’s successor, Iranian Supreme Leader Ali Khamenei. 

Hizballah is closely allied with Iran and often acts at its behest, but it also can and 

does act independently. Though Hizballah does not share the Syrian regime’s secular orientation, the group has been a strong ally in helping Syria advance its political objectives in the region. The Majlis al-Shura, or Consultative Council, is the 

group’s highest governing body and has been led by Secretary General Hasan 

Nasrallah since 1992. 

Hizballah promotes Shia interests within the Lebanese political system and is an 

exemplar for Shia communities throughout the region. Hizballah supports a variety 

of violent anti-Western groups, including Palestinian terrorist organizations. This 

support includes the covert provision of weapons, explosives, training, funding, and 

guidance, as well as overt political support. Prior to September 11, Hizballah was 

responsible for more American deaths than any other terrorist group. 

Hizballah formed its ranks in part by subsuming members of separate Lebanese 

organizations, many of which had cooperated under the umbrella of the Islamic 

Jihad group during this time period. It also began to receive financial and material 
12

support from the Iranian government very early on. The organization has portrayed 

itself as an instrument of legitimate national resistance, focusing a majority of its 

efforts on ending the Israeli occupation of Lebanon. Following Israel’s 2000 withdrawal from southern Lebanon, Hizballah has continued to assert that regions of 

Lebanon remain occupied and has used this pretext as cover to strengthen its capabilities. 

Hizballah has a wide, increasing global reach, with an ability to harm U.S. and 

other western interests across continents. As we saw during the most recent conflict, 

Hizballah’s rhetoric targets the United States for its alleged complicity with Israel. 

In addition, Hizballah’s recent actions demonstrate the destabilizing effect it has on 

the region. These events have reinforced the need to deny non-state actors such as 

Hizballah the ability to exploit weak states and undergoverned areas. 

We believe that Hizballah maintains the ability to threaten the survival of the 

current government of Lebanon from within, as well as continuing to threaten the 

security of Israel and the region. Hizballah receives logistical, material, and financial support from its Iranian and Syrian backers. It maintains an extended network 

of social and support services to the Lebanese people, particularly in the Shia-dominated south of the country. We cannot recognize Hizballah as a legitimate party 

until it ends its terrorist activity and gets out of the terrorist business. 

Relationship Between Hizballah, Iran and Syria 

Hizballah, Iran, and Syria continue to enjoy a relationship which can best be 

characterized as symbiotic. Iran and Syria cooperate with each other and with 

Hizballah to supply funds, arms and training for, and to facilitate travel by 

Hizballah members. Hizballah continues to actively advance interests within the 

Lebanese political system that coincide with Syrian and Iranian interests, and otherwise behaves in a manner that benefits both Tehran and Damascus. 

The USG has long assessed that Iran provides technological, operational, and financial support and guidance to Lebanese Hizballah. The Iranian regime has for 27 

years used its connections and influence with terrorist groups to combat U.S. interests it perceives as at odds with its own, and Hizballah has acted as a willing partner in that conflict. 

We believe that Iran’s support for Hizballah continued throughout Hizballah’s recent conflict with Israel. Hizballah and Iran are strategic collaborators. We believe 

that Hizballah’s decision to exacerbate the conflict with indiscriminate rocket attacks into Israel targeting Israeli civilians could not have happened without at least 

the tacit support of Tehran. We also believe that Iran and Syria’s non-humanitarian 

support for Hizballah—including financial, logistic, and military support—has not 

stopped since the cease-fire or the adoption of UN Security Council Resolution 

(UNSCR) 1701. Just last week Nasrallah bragged publicly about Hizballah’s remaining weapons cache. We continue to call upon Iran and Syria to comply with the legally binding requirement of UNSCR 1701 to prevent the transfer of illicit weapons 

to Hizballah. 

The United States and the international community condemned the recent conflict 

and we worked hard with our partners in the international community to end it, 

and to adopt and implement all of the provisions of UNSCR 1701. When it is fully 

implemented, resolution 1701 will radically change the reality in Lebanon for the 

better, strengthening Lebanon’s sovereignty, independence, and freedom—thus ending Hizballah’s ability to threaten its stability. The international community continues to call upon both Syria and Iran to meet their obligations fully to help implement resolution 1701 and past Security Council resolutions on Hizballah, including 

the full and verifiable disarmament of Hizballah. 

Iran is the ‘‘central banker’’ of terrorism and a primary funding source for 

Hizballah. Because money is a terrorist group’s oxygen, attacking terrorist financing 

is an essential element to combating terrorism. In that regard, we have made 

progress in impeding Iran’s financial support for Hizballah and in undermining 

Hizballah’s own financial network. The Department of Treasury is spearheading an 

interagency effort to undermine Iran’s financial support for terrorism. In recent 

weeks, Treasury and State Department teams have traveled to Europe, the Middle 

East and Asia to meet with banking officials to enlist their support in our efforts 

to combat terrorism and cut off Iran’s support for terrorist groups like Hizballah. 

The U.S. Government announced on September 8 that it will prevent one of Iran’s 

largest state-owned banks—Bank Saderat—from gaining access to the U.S. financial 

system. We believe Bank Saderat has been used by Iran to transfer money to 

Hizballah, Hamas, Palestine Islamic Jihad, and other terrorist organizations. We 

have also taken active steps to cut off Hizballah’s financial support from Iran and 

others, including by designating the Islamic Resistance Support Organization, a key 

front charity funding Hizballah, under U.S. Executive Order 13224, thus freezing 
13

that organization’s assets under U.S. jurisdiction. Finally, we continue to urge our 

partners in the Global War on Terror to take similar steps to cut off Iran’s funding 

of Hizballah’s terrorist activities, and to press the Iranian regime to end its support 

for terrorism. 

Finally, we assess Lebanese Hizballah and the Iranian Revolutionary Guard have 

implemented training programs for Iraqi militants in the construction and use of 

sophisticated IED technology. These individuals then pass on this training to additional militants in Iraq. 

Hizballah’s Current Activities in Lebanon 

Hizballah maintains the only significant armed militia in Lebanon, despite requirements under UNSCR 1559 that it be disarmed. We believe that UNSCR 1701 

will strengthen the previous resolution, and assist the Lebanese Armed Forces and 

UNIFIL troops in interdicting weapons shipments coming into Lebanon intended for 

Hizballah. The Government of Lebanon will need to address the ability of Hizballah 

to re-arm, particularly as this relates to the Lebanon-Syria border. 

Hizballah, an established, stable movement with deep roots and broad support, 

especially in the southern Lebanon Shia community, has shown an ability to cross 

confessional lines in order to garner further support. With its social services network largely intact, Hizballah has also been very quick to provide high-profile reconstruction and humanitarian assistance over the past month, well in advance of 

international donor efforts. 

For the moment, Hizballah appears to have lowered its military profile in the 

south; however, we are unable to assess whether this is primarily motivated by domestic political concerns, UNFIL presence, or losses suffered during the recent conflict. Hizballah leaders have made public statements indicating that they will not 

be disarmed and that the disarmament issue should not fall within the purview of 

the UNFIL troops. With that said, we remain wary that even with the increasing 

presence of the Lebanese army and international troops in the south, Hizballah will 

retain a potentially strong military capability in southern Lebanon and its ability 

to receive logistic and material assistance from Syria and Iran. Indeed, Hizballah 

was able to receive this support despite the fighting with Israel, taking full advantage of existing land access routes and tunnels along the porous Lebanon-Syria border, especially in the Bekaa Valley, to receive weapons and other material. 

Hizballah’s Activities Worldwide 

The Middle East. While Hizballah’s most robust presence remains in the Levant, 

its support network extends well beyond, including into the Gulf, where Hizballah 

performs various fundraising activities. Hizballah has supported terrorist activities 

in the Palestinian territories since at least 2000, by providing financial, training and 

logistical support to Palestinian Islamic Jihad and other Palestinian terrorist 

groups. While the vast majority of Palestinians support peace negotiations and want 

a two-state solution, Hizballah actively foments terrorist activity that directly undermines this goal. 

Latin America. Although there is little credible evidence of the present activity of 

operational Hizballah cells in Latin America, Hizballah has numerous supporters 

and sympathizers throughout Arab and Muslim communities in the region who are 

involved primarily in raising funds for the terrorist group, by licit and illicit means. 

Hizballah supporters and sympathizers are also involved in a number of illegal activities, including smuggling, drug and arms trafficking, money laundering, fraud, 

intellectual property piracy, and other transnational crime. 

We are working with all our partners in the Americas to heighten awareness of 

this threat and to take the necessary measures to contain and eventually dismantle 

Hizballah activities in this hemisphere. Our focus has been on thwarting terror financing, improving border controls, strengthening our friends’ intelligence capabilities, and urging adoption of stricter counterterrorism legislation. 

On the critical component of intelligence, U.S. bilateral cooperation with our hemispheric partners is, with a few notable exceptions, excellent. Perhaps more importantly, intelligence and information sharing among our neighbors is at an unprecedented high. We are particularly encouraged by the growing collaboration among 

Brazil, Argentina, and Paraguay to address smuggling, drug and arm trafficking, 

money laundering, fraud, intellectual property piracy, and other transnational crime 

in the Tri-Border Area. Through formal dialogue with the U.S., Argentina, Brazil 

and Paraguay have begun to institutionalize what were once ad-hoc cooperative or 

loosely-coordinated activities among local officials. This enhanced cooperation has 

led to a number of these suspects being prosecuted by our three partners for a variety of crimes. 
14

Yet challenges remain. Most of our neighbors in the hemisphere have high competing priorities for scarce public resources, making it politically difficult to invest 

even modestly in CT capabilities when basic social services, such as education and 

healthcare, remain under-funded. Official corruption is another serious problem that 

can undermine the most advanced training and the most sophisticated detection systems. 

We have more work to do in encouraging foreign legislation. No Latin American 

country has in place, or is seriously considering adopting, terrorist designation regimes that would make membership in and support for a designated terrorist organization a crime. In the case of Hizballah, this is an especially high hill to climb, 

particularly because some of our neighbors consider Hizballah a legitimate political 

party. 

West and Central Africa. Hizballah also receives a significant amount of financing 

from the Shiite Muslim diaspora of West and Central Africa, whose presence was 

established in the late 19th century. The Lebanese disapora is active in West Africa’s commercial sector with extensive business networks throughout the region and 

extending beyond. In many cases these businesses have significant control over 

basic imported commodities, such as rice and chicken. Lebanese traders are also 

very active in diamond exports, both as a business and in criminal exploitation. 

It is important to note that the Lebanese community in West Africa is not 

monolithically Muslim nor completely supportive of Hizballah, but mirrors the same 

religious and political divisions present in Lebanon. It is clear, however, that 

Hizballah receives significant support from this community. Contributions, which 

often take the form of religious donations, are often paid in cash, and are collected 

by Hizballah couriers transiting the region. These groups provide safe haven and 

R&R sites for Hizballah fighters. Countering this network of terrorist financing will 

be a challenge and will take significant resources and time. 

Al-Manar 

Hizballah has been designated by the U.S. Government under three different 

counterterrorism authorities—as a Foreign Terrorist Organization, a Specially Designated Terrorist, and a Specially Designated Global Terrorist. The Lebanese Media 

Group (LMG) and its subsidiaries, Al-Manar television and Al-Nour radio, form a 

recognized arm of Hizballah. Hizballah established Al-Manar in 1991. Al-Manar and 

Al-Nour have provided Hizballah with fundraising and other material support. AlManar has raised funds for Hizballah by running advertisements on its television 

broadcasts and website. In addition, Al-Manar regularly airs Hizballah promotional 

videos featuring suicide bombers and rallies of Hizballah fighters. 

To confront the threat posed by the LMG, Al-Manar, and Al-Nour, the USG has 

multiple authorities for designating terrorist organizations, each with significant—

and different—consequences. In December 2004, the U.S. Department of State 

added Al-Manar to the Terrorism Exclusion List (TEL). Putting an organization on 

the TEL has immigration and deportation consequences for non-U.S. citizens who 

have certain associations with the group, but it does not result in economic sanctions. Their addition to the TEL did, however, lead to the removal of Al-Manar’s 

programs from its main satellite television provider in the U.S. and made it more 

difficult for Al-Manar associates and affiliates to operate here. At the same time, 

Al-Manar also lost access to its main satellite television service providers in Europe. 

On March 23, 2006, the Department of Treasury designated the LMG, Al-Manar, 

and Al-Nour under Executive Order 13224, making all three organizations Specially 

Designated Global Terrorist entities. This resulted in economic sanctions, namely 

the assets and other property of these entities, subject to U.S. jurisdiction, which 

have now been frozen. Moreover, it is now a criminal act for any U.S. person to willfully engage in any financial transactions with these organizations or to provide 

them any material benefit. This has made it far more difficult to gain access to AlManar programs in the U.S. A satellite television service provider in New York was 

recently arrested for making Al-Manar available to customers. We continue to monitor the situation and keep a careful eye on the activities of the LMG, Al-Manar, 

and Al-Nour. 

Conclusion 

In summary, I would emphasize that Hizballah presents a very serious challenge 

to us. Hizballah is a highly organized, disciplined, and trained organization, which 

enjoys robust funding through multiple sources and means, and is capable of acting 

against U.S. interests on several fronts and on several continents. Where we can 

act effectively to stem its activity is through the close cooperation of our allies across 

the globe who also recognize this threat. 
15

We aim to enhance our partners’ capacity to counter the terrorist threat and address conditions that terrorists exploit. We work with or through partners at every 

level (both bilaterally and multilaterally), whenever possible. To implement this 

strategy, U.S. Ambassadors, as the President’s personal representatives abroad, lead 

interagency Country Teams that recommend strategies using all instruments of U.S. 

statecraft to help host nations understand the threat, and strengthen their political 

will and capacity to counter it. 

The Office of the Coordinator for Counterterrorism has worked to develop the Regional Strategic Initiative, which is designed to establish flexible regional networks 

of interconnected Country Teams. We are working with Ambassadors and interagency representatives in key terrorist theaters of operation to assess the threat 

and devise collaborative strategies, actionable initiatives and policy recommendations. 

Our strategy is aimed over the long-term. Over time, our global and regional operations will reduce the enemy’s capacity to harm us and our partners, while local security and development assistance will build our partners’ capacity. Once partner 

capacity exceeds threat, the need for close U.S. engagement and support will diminish, terrorist movements will fracture and implode, and the threat will be reduced 

to proportions that our partners can manage for themselves over the long term. 

Hizballah’s penchant for exploiting poorly-governed areas is all the more reason 

to continue focusing our efforts and our resources on enhancing regional cooperation 

and building partner will and capacity. Absent this type and level of continued attention to Hizballah and the threat it poses, our knowledge of the group and the 

means of confronting it are hindered immeasurably. 

This completes the formal part of my remarks, and I welcome your questions and 

comments.

Mr. ROYCE. Thank you, Mr. Urbancic. 

Now, we are going to go to Mr. Kavanagh. 

STATEMENT OF MR. JOHN G. KAVANAGH, SECTION CHIEF, 

INTERNATIONAL TERRORISM OPERATIONS SECTION II, 

COUNTERTERRORISM DIVISION, FEDERAL BUREAU OF INVESTIGATION 

Mr. KAVANAGH. Chairman Royce, Chairwoman Ros-Lehtinen, 

Ranking Members Sherman and Ackerman, Members of both Subcommittees, I want to thank you for this opportunity to speak to 

you on the topic of Hezbollah and the concerns you have about 

Hezbollah’s capabilities. I will address some of the types of activities Hezbollah has been involved in while keeping in mind the sensitivities associated with discussing certain operational matters in 

an unclassified setting. 

Hezbollah is one of the most capable terrorist organizations in 

the world. This Lebanon-based, radical Shia organization advocates 

the destruction of Israel and the establishment of Islamic rule in 

Lebanon and in the Middle East. Hezbollah was created in 1982 in 

response to the Israelis invasion and occupation of Lebanon. As 

seen in the recent conflict with Israel, Hezbollah has a welltrained, guerilla force that is proficient in military tactics and 

weaponry. Since its inception, Hezbollah has employed suicide 

bombers and has committed airline hijackings, kidnappings, and 

murders in furtherance of its operations. Prior to September 11, 

2001, as stated by this panel, Hezbollah was responsible for 288 

American deaths, more than any other terrorist organization at 

that time. 

Hezbollah is known or suspected to have been involved in numerous anti-United States attacks overseas, including the suicide truck 

bombing of the United States Embassy in Beirut in April 1983; the 

bombing of the United States Marine Corps barracks in Beirut in 

October 1983 that killed 241 United States servicemen, and the at-
16

tack on the United States Embassy annex in Beirut in September 

1984. Hezbollah is also responsible for the kidnappings and murders of U.S. Government officials William Buckley and Lieutenant 

Colonel William Higgins. In June 1996, a Saudi Hezbollah member 

also drove the vehicle that destroyed one of the Khobar Towers in 

Saudi Arabia, killing 19 United States servicemen. According to the 

indictment, a member of the Lebanese Hezbollah assisted Saudi 

Hezbollah with the construction of the tanker truck bomb that was 

used in this attack. 

Hezbollah also has shown the ability to strike outside the Middle 

East by attacking the Israeli Embassy in Argentina in 1992 and 

the bombing of the Israeli Cultural Center in Buenos Aires in 1994. 

Hezbollah has been designated by the secretary of state as a foreign terrorist organization, in accordance with Section 219 of the 

Immigration and Nationality Act. 

Currently, four high-profile Hezbollah members are wanted in 

the United States in connection to the June 14, 1985, hijacking of 

TWA Flight 847 as it departed Athens International Airport en 

route to Rome. The hijackers shuttled the airplane between Beirut 

and Algiers, where they brutally beat several United States passengers and executed U.S. Navy diver Robert Stethem. The four 

members who have been indicted for their roles in this dastardly 

attack are Imad Mughniya, the current head of Hezbollah’s security apparatus; Hassan Izz-Al-Din, Muhammad Ali Hammadi, and 

Ali Atwa. There are also 14 outstanding arrest warrants for those 

responsible for the Khobar Towers attack. 

The FBI, in conjunction with the U.S. intelligence community 

and through the FBI-led Joint Terrorism Task Force, continues to 

investigate Hezbollah activities directed at the United States. Although Hezbollah retains the capability to attempt to strike at 

United States interests, Hezbollah has not directly targeted the 

United States since the attack on Khobar Towers in 1996. Within 

the United States, Hezbollah associates and sympathizers have engaged in a wide range of criminal activities, to include money laundering, credit card fraud, immigration fraud, food stamp fraud, 

bank fraud, and narcotics trafficking. Recently, the FBI and its law 

enforcement partners concluded an investigation in Detroit in 

which 107 Federal indictments were obtained, leading to the arrests of 58 Hezbollah subjects and the seizure of approximately $5 

million in property. These individuals were involved in a variety of 

Federal violations, including providing material support to a terrorist organization and racketeering. 

It is common in the United States for associates of terrorist organizations to use alleged Middle East charitable organizations to 

funnel money back home to support the various terrorist operations. The FBI, with its partners in the Department of the Treasury, Department of State, and the rest of the Department of Justice, works closely to have these organizations that are providing 

material support to terrorists shut down and have those knowingly 

engaged in such conduct criminally charged. In March 2006, the 

Department of the Treasury designated Al-Manar television a Specially Designated Global Terrorist entity. Al-Manar is the 

Hezbollah television propaganda medium that raises funds for 

Hezbollah via advertisements. Al-Manar’s programming includes 
17

features glorifying Hezbollah fighters and suicide bombers. The 

FBI and its partners in the New York Joint Terrorism Task Force 

recently arrested the Al-Manar satellite television service provider 

for knowingly providing support to Hezbollah. 

The FBI, with our partners in the United States intelligence and 

law enforcement communities, will continue to aggressively investigate and prosecute the threat posed by Hezbollah and other terrorist organizations in order to protect our citizens and preserve 

our national security. Director Mueller recently remarked, ‘‘It has 

been nearly 5 years since the last terrorist attack on America. Yet 

there is no room for complacency. As we have seen in recent 

months, our enemies are adaptive and evasive. They are taking full 

advantage of technology. They are combining their resources and 

their expertise to great effect. We must do the same.’’

Thank you, Mr. Chairman. 

[The prepared statement of Mr. Kavanagh follows:]

PREPARED STATEMENT OF MR. JOHN G. KAVANAGH, SECTION CHIEF, INTERNATIONAL

TERRORISM OPERATIONS SECTION II, COUNTERTERRORISM DIVISION, FEDERAL BUREAU OF INVESTIGATION

Chairman Royce, Chairman Ros-Lehtinen, Ranking Members Sherman and Ackerman, members of both Subcommittees, I want to thank you for the opportunity 

to speak to you on the topic of Hizballah, and the concerns you have about 

Hizballah’s capabilities. I will address some of the types of activities Hizballah has 

been and is involved in within the United States, while keeping in mind the sensitivities associated with discussing certain operational matters in an unclassified 

setting. 

Hizballah (Party of God) is one of the most capable terrorist organizations in the 

world. This Lebanon-based radical Shi’a organization advocates the destruction of 

Israel and the establishment of Islamic rule in Lebanon and the Middle East. 

Hizballah was created in 1982 in response to the Israeli invasion and occupation 

of Lebanon. As seen in the recent conflict with Israel, Hizballah has a well trained 

guerilla force that is proficient in military tactics and weaponry. Since its inception, 

Hizballah has employed suicide bombers and has committed airline hijackings, 

kidnappings and murders in furtherance of its goals and objectives. Prior to September 11, 2001, Hizballah was responsible for 288 American deaths, more than any 

other terrorist organization at that time. 

Hizballah is known or suspected to have been involved in numerous anti-United 

States attacks overseas, including the suicide truck bombings of the United States 

Embassy in Beirut in April 1983; the bombing of the U.S. Marine Corps barracks 

in Beirut in October 1983 that killed 241 U.S. servicemen; and the attack on the 

United States Embassy annex in Beirut in September 1984. Hizballah is also responsible for the kidnappings and murders of U.S. Government officials William 

Buckley and Lt. Colonel William Higgins. In June 1996, a Saudi Hizballah member 

also drove the vehicle that destroyed one of the Khobar Towers in Dhahran, Saudi 

Arabia, killing 19 U.S. servicemen; according to the indictment, a member of Lebanese Hizballah assisted Saudi Hizballah with the construction of the tanker truck 

bomb used in the attack. Hizballah has shown the ability to strike outside the Middle East region by attacking the Israeli Embassy in Argentina in 1992 and bombing 

a Jewish Argentine cultural center in Buenos Aires in 1994. Hizballah has been designated by the Secretary of State as a Foreign Terrorist Organization in accordance 

with Section 219 of the Immigration and Nationality Act. 

Currently four high profile Hizballah members are wanted in the United States 

in connection to the June 14, 1985, hijacking of TWA flight 847 as it departed Athens International Airport en route to Rome. The hijackers shuttled the airplane between Beirut and Algiers, where they brutally beat several U.S. passengers and executed U.S. Navy diver Robert Stethem. The four members who have been indicted 

for their roles in this crime are Imad Mughniya, the head of Hizaballah’s security 

apparatus, Hasan Izz-Al-Din, Muhammad Ali Hammadi and Ali Atwa. There are 

also 14 outstanding arrest warrants for those responsible for the Khobar Towers attack. 

The FBI in conjunction with the U.S. Intelligence Community and through the 

FBI led Joint Terrorism Task Forces (JTTFs) continues to investigate Hizballah ac-
18

tivities directed at the United States. Although Hizballah retains the capability to 

attempt to strike at United States interests, we assess that Hizballah has not directly targeted the United States since the attack on Khobar Towers in 1996. Within 

the United States, Hizballah associates and sympathizers have engaged in a wide 

range of criminal activities to include money laundering, credit card fraud, immigration fraud, food stamp fraud, bank fraud and narcotics trafficking. Recently the FBI 

and its law enforcement partners concluded an investigation in Detroit, Michigan, 

where 107 Federal indictments were obtained, leading to the arrests of 58 Hizballah 

subjects and the seizure of approximately 5 million dollars in property. These individuals were involved in a variety of Federal violations, to include providing material support to a terrorist organization and Federal racketeering charges. 

It is common in the United States for associates of terrorist organizations to use 

alleged Middle East charitable organizations to funnel money back home to support 

the various terrorist organizations. The FBI with its partners in the Department of 

Treasury, Department of State and the rest of the Department of Justice works 

closely to have these organizations that are providing material support to terrorists 

shut down and have those knowingly engaged in such conduct criminally charged. 

In March 2006, the Department of Treasury designated Al-Manar television a Specially Designated Global Terrorist entity. Al-Manar is the Hizballah television propaganda medium that raises funds for Hizballah via advertisements, and Al-Manar’s 

programming includes features glorifying Hizballah fighters and suicide bombers. 

The FBI and its partners in the New York JTTF recently arrested an Al-Manar satellite television service provider for knowingly engaging in prohibited transactions 

with Al-Manar. 

The FBI with our partners in the U.S. Intelligence and the law enforcement communities will continue to aggressively investigate and prosecute the threat posed by 

Hizballah in order to protect our citizens and preserve our national security. Director Mueller recently remarked, ‘‘It has been nearly five years since the last terrorist 

attack on America. Yet there is no room for complacency. As we have seen in recent 

months, our enemies are adaptive and evasive. They are taking full advantage of 

technology. They are combining their resources and their expertise to great effect. 

We must do the same.’’

Thank You for the opportunity to address this important issue. I am happy to answer your questions.

Mr. ROYCE. Thank you, Mr. Kavanagh. 

The FBI recently arrested 58 Hezbollah subjects in Detroit, and 

looking at the profile of Mr. Mahmoud Kourani, I see he had extensive training in terrorism and weapons in both Iran and in the 

Bekaa Valley. Do you know if any of these 58 individuals that were 

arrested in Detroit had any military training? 

Mr. KAVANAGH. What we are seeing, sir, is that we are not seeing the highly military-trained individuals in the United States. 

Those who we know are identified as having had Hezbollah training basically were acted very quickly on, and with our partners in 

Homeland Security, we usually have been very successful in having 

them charged and deported. In this case, the 58 were not military 

trained. 

Mr. ROYCE. We see the Border Patrol attempting to apprehend 

these individuals, but, clearly, with Mahmoud Kourani, he was 

able, through the use of a ‘‘coyote,’’ to avoid capture until you 

caught him in Dearborn. 

What have your conversations with the Border Patrol been like 

about this strategy of trying to apprehend individuals coming into 

the United States, and how extensive do you think it is—maybe we 

could look back and compare what is happening this year with 5 

years ago, especially 10 years ago—in terms of Hezbollah 

operatives coming into the United States? You are making a lot of 

apprehensions here now, and I wanted to ask you to follow up on 

that. 

Mr. KAVANAGH. I would say, generally, we are not seeing 

Hezbollah operatives in the United States. What we are seeing is 
19

a lot of supporters and sympathizers who are funneling a lot of 

money back to Lebanon for the cause, for the suicide bombers and 

the terrorist operations that are occurring in the Middle East. 

We work very closely with the Joint Terrorism Task Forces, with 

ICE, with Homeland Security, and basically taking all of our expertise and intelligence that we have, and with the international intelligence community overseas, to identify them before they enter the 

country. 

Mr. ROYCE. I noticed in your testimony that you were talking 

about the immigration fraud in which Hezbollah is increasingly involved. Could you elaborate on that immigration fraud as a modus 

operandi for Hezbollah? 

Mr. KAVANAGH. I would probably feel more comfortable having 

somebody from the Department of Homeland Security answer that 

question, sir, for you, but I would say, sir, we are definitely seeing 

a pattern of a lot of people entering the country with visa fraud on 

their documentation. We are also seeing a lot of marriage fraud. I 

think it is stuff that is well known to these Subcommittees that we 

do have issues and problems with the process that is allowing a lot 

of these individuals into the country. 

Mr. ROYCE. We had a hearing in Laredo, Texas, and also one in 

San Diego. In Laredo, there was a real concern on the part of the 

sheriffs with OTMs and particularly about people from this part of 

the world who they were apprehending coming in through the 

Texas border. How legitimate of a concern that might be? 

Mr. KAVANAGH. I think, sir, Texas is just one of the areas, but 

the whole border issue is how the entry points are being made. I 

do not think we are seeing as much of the smuggling operations 

at this point as the people who are legally gaining access to this 

country. 

Mr. ROYCE. Although we did see that with one operative in Tijuana who brought in 200 individuals and was aligned with 

Hezbollah, so we have seen some activity on the California——

Mr. KAVANAGH. Correct, sir. We have seen some, but on the 

whole scale, though, sir, I think the bigger issue is some of the 

problems that are occurring with the immigration policies or the 

enforcement, as a nation, to deal with those. Also, we are seeing 

more so, as you know, sir, the student visa problems. 

Mr. ROYCE. The last question I was going to ask of Mr. Urbancic. 

Jane’s Defense Weekly reports that Iran plans to supply Hezbollah 

with Chinese-designed, shoulder-fired missiles. The reason Iran 

wants to do that is they say these can take out the Israeli Air 

Force. Of course, they could also take out any jetliner. There are 

also reports of longer-range Russian missiles, such as the sophisticated SA–16. 

Part of the strategy with the resolution that the U.N. was taking, 

UNSCR 1701, was that Hezbollah was not supposed to be re-armed 

by Iran. Clearly, the evidence in your report right now is that rearmament continues. From these reports, there is wide expectation 

of a rather massive ramp up in terms of the type of weaponry. It 

is now going to be more than the cruise missiles that we have seen 

in the past. 

It was the hope that there was going to be a price paid by Iran 

for Hezbollah’s aggression. When I was in Israel during those rock-
20

et attacks, people were saying, ‘‘Well, there will be a price paid by 

Iran.’’ That does not seem to be the case, does it? 

Mr. URBANCIC. Well, Congressman, I cannot speak specifically to 

Iranian deliveries of MANPADS to Hezbollah. I have seen the reports. But, clearly, the threat of MANPADS and other missiles in 

the hands of Hezbollah or in the hands of other terrorist groups is 

something that we take very seriously. Already, the Israelis faced 

that in East Africa, and we are very, very cognizant of it. 

We are doing everything that we can with our allies, as I mentioned in my statement, because that is the way we have to do it. 

This is an international problem. We are working directly with our 

allies to not only register our concerns but to make sure that those 

resolutions are implemented in Beirut and in Lebanon. 

We just completed our Joint Task Force Working Group on Counterterrorism with the Russians here in Washington a week and a 

half ago, and without going into great detail, I can tell you that 

some of the most intense discussions were about Iran. 

Mr. ROYCE. I appreciate that very much, and, again, from the 

testimony, Iran ‘‘has not stopped since the cease-fire’’ or the adoption of ‘‘the U.N. resolution its financial, logistic, and military support,’’ so we are going to have to redouble those efforts. 

We are going to go to Mr. Ackerman for his questions. 

Mr. ACKERMAN. Thank you, Mr. Chairman. 

Al-Manar, which is Hezbollah’s television network, has been 

banned in our country, as well as France, and several satellite 

services have discontinued broadcasting Al-Manar. 

What I would like to know, with it still being broadcasted, both 

in Egypt and Saudi Arabia, who are also threatened by Hezbollah, 

why is Al-Manar still on the air? What steps have we taken to try 

to get them off the air there, and why are those governments reluctant to do it, and do they need some help and cover, and are we 

contemplating doing that? 

Mr. URBANCIC. Congressman, Hezbollah is something that we 

take very seriously, and we are in intense discussions with the two 

governments that you mentioned, Saudi Arabia and Egypt, on the 

entire range of CT issues, not just Al-Manar. Al-Manar is a big 

one. We are working with those governments. 

There are various complications and various political problems 

that we have with them, but, as I said before, working with our 

partners is the key to shutting Al-Manar down, and we are doing 

everything that we can on the diplomatic front as aggressively as 

we possibly can, at every encounter that we have, to get those 

broadcasting channels shut down. 

Mr. ACKERMAN. Nothing specific that you could share with us in 

this venue? 

Mr. URBANCIC. In the discussions, no, sir, not in this forum. 

Mr. ACKERMAN. You would be able to do that in a different setting? 

Mr. URBANCIC. I will take the question, if you would like, or, yes, 

if you want to do a different——

Mr. ACKERMAN. No, no, no. I am saying, if we had a different 

venue for this meeting——

Mr. URBANCIC. Sure. 
21

Mr. ACKERMAN [continuing]. Would we be able to discuss that 

further? 

Hezbollah has been called the ‘‘A-Team of Terrorism’’ by Former 

Secretary Armitage. What types of activities do we see from 

Hezbollah within the United States? Do they have plans to attack 

the United States or our interests overseas, and what have we 

done to limit that possibility? 

Mr. KAVANAGH. Sir, as I stated earlier, what we have done with 

the Joint Terrorism Task Forces and with the intelligence community is basically worked together overseas internationally to get the 

information and intelligence to the people over here in CONUS 

that need that information to effectively combat all terrorist 

groups. 

Like we have said, if we knew someone who had, let us say, a 

military background and is possibly a Hezbollah operative, we 

would do everything——

Mr. ACKERMAN. The question is, do we know of Hezbollah 

operatives in the United States, and do we know if or that they 

have plans for an attack in the United States? 

Mr. KAVANAGH. I would say, sir, at this time, I would say the 

United States is used more as the financial funding operation. We 

are a great financial funder for a lot of the terrorist organizations 

in the Middle East through the various charities. Hezbollah basically, to date, even though they are unpredictable, have basically 

kept their attacks isolated to the Middle East regarding the United 

States. 

Mr. ACKERMAN. I am talking about what their plans are. 

Mr. KAVANAGH. Sir, I could just say, based on what we know to 

date, we do not see any ongoing or attempted operations in the 

United States, but, again, as of right now. 

Mr. ACKERMAN. So you are telling us that Hezbollah has no 

plans within the United States for an attack on the United States. 

Mr. KAVANAGH. What I am trying to tell you, sir, is——

Mr. ACKERMAN. We have no information on this. 

Mr. KAVANAGH. As of right now, sir, I have no information I can 

share with you right now about any ongoing plans or attacks in the 

United States by Hezbollah. 

Mr. ACKERMAN. You added that you can share with us to that 

statement, which, otherwise, I understood. 

Mr. KAVANAGH. I would say, sir, right now, there is——

Mr. ACKERMAN. Do you know of any plans? 

Mr. KAVANAGH. No, sir. I do not believe there are any plans right 

now that we are aware of at this point. 

Mr. ACKERMAN. So we know of no plans for Hezbollah to attack 

the United States, and they are basically just using us as——

Mr. KAVANAGH. When you say the ‘‘United States,’’ as CONUS, 

United States, as of right now, like I said, sir, I would probably feel 

more comfortable if we discussed this question, at least, in a classified Subcommittee meeting. 

Mr. ACKERMAN. Maybe, Mr. Chairman, we can arrange for that. 

Mr. ROYCE. We will arrange for that, Mr. Ackerman, and we will 

go now to Mr. Tancredo from Colorado and then to Mr. Berman 

from California. 

Mr. TANCREDO. Thank you, Mr. Chairman. 
22

I want to go back a little bit to the discussion we were having 

with regard to the border, especially the southern border of the 

United States and the various activities on the other side of that 

border that are quite perplexing and disconcerting. 

In particular, there has been an increase in the number of paramilitary activities on the Mexican side of the border: camps, as I 

understand it, that have been developed near Matamoris, Mexico, 

and in other places run by the Zadas. These camps are primarily 

and essentially set up for the purpose of training people to move 

drugs into the United States and to avoid contact with American 

authorities, but they are paramilitaries, and the Zadas, of course, 

are people that we trained at one point in time, went back to Mexico, turned, and became part of the Mexican cartels. They are very 

capable people. 

We have had an indication that there have been now thousands—up to 10,000, I think I read just recently—of desertions 

from the Mexican military, many of them also entering into the 

ranks of the folks who are moving drugs into the United States. 

Now, we all know that the activities so far have been centered 

around the movement of drugs, as I say, but we also know, or, at 

least, at one time we were told by Administration officials, that 

there were concerns about the possibility that contact had been 

made between these organizations and Hezbollah. 

I wonder if you could tell me if you have any more information 

about that. To what extent do you know about any contact that has 

been made that you can tell us about in this setting, and, I guess, 

if you cannot tell us specifically what contact has been made, can 

you tell us what your concerns are about that possibility? How real 

is the possibility that Hezbollah has made any sort of arrangements with the various radical groups in Mexico that are part of 

the drug cartels and also have established enormously successful 

routes into the United States where both people and drugs could 

be moved? 

Mr. URBANCIC. Congressman, in a general fashion, what I could 

say is that, first of all, Hezbollah portrays itself primarily as a nationalist movement within Lebanon. 

Mr. ROYCE. Mr. Urbancic, if you or Mr. Kavanagh would pull 

those microphones close to you, that would be helpful. There you 

go. 

Mr. URBANCIC. If I could say, first of all, that Hezbollah, so far, 

has portrayed itself as a nationalist movement within Lebanon. I 

think we could think of it perhaps as almost an octopus with the 

head in southern Lebanon and tentacles moving around the world. 

Mostly those tentacles that we are aware of outside of Lebanon, except for the Iran-Syria link, obviously, are for supply and support, 

and that is what we see. 

What we are very, very concerned about is the potential linkup 

between Hezbollah and narcoterrorism, the FARC in South America, which is its own problem, and the potential to use that type 

of funding mechanism against us, first, domestically and, secondly, 

in the Middle East. 

It is a subject of great concern for us. I do not want to speak of 

specific contacts that we are aware of, but it is something that we 
23

are very much worried about in the tri-border area, as we have 

mentioned. 

Mr. TANCREDO. The tri-border area was going to be my next 

question. Certainly, we do know that there is movement through 

that area, from the Middle East into South America through the 

tri-border area, where they are trained, where they are given documentation, where they are kept for some period of time, and then 

moved on into the United States. 

Now, all of these people who are paying these enormous sums in 

order to get here are not doing so to work at the 7-Eleven. They 

are doing so for other purposes, and we have to assume that those 

purposes are nefarious. 

Mr. URBANCIC. I think that is exactly right. All of the documentation that you talked about is for sale, and it is easily—well 

not easily—it certainly can be reproduced, and there are experts 

that do it overseas for all types of purposes: for smuggling, for nefarious purposes much worse than illicit drugs. 

On the domestic side, I defer to DHS and to the FBI. 

Hezbollah has assets around the world, and it can mobilize them 

on a moment’s notice. I am quite sure of that. 

Mr. ROYCE. And Hezbollah subjects that are detained today have 

been involved in immigration fraud. That has come out in the testimony as well. 

We are now going to go to Mr. Berman of California and then 

Mr. Rohrabacher of California. 

Mr. BERMAN. Thank you, Mr. Chairman, and thank you for holding this hearing. 

This notion of Hezbollah’s global reach being for purposes of supply and support—I think that is what you said. 

Mr. URBANCIC. Yes. I think that is the characterization we 

would—which is not to say that it does not have additional potential, but I think, primarily, at the moment, that is the status that 

we have. 

Mr. BERMAN. Well, let me ask you about one particular activity 

that has gotten publicity in the last 12 months, and that is 

Hezbollah being a provider of particularly Islamic Jihad, Al-Aksa, 

and Hamas, to some extent, in the West Bank and in Gaza, to the 

point of actually encouraging specific kinds of terrorist operations 

by those organizations and helping to equip and supply them. 

Mr. URBANCIC. Yes, sir. I think I mentioned in my statements 

that, since at least 2000, those contacts have existed——

Mr. BERMAN. 2000? 

Mr. URBANCIC. The year 2000. 

Mr. BERMAN. Oh. 

Mr. URBANCIC [continuing]. Those contacts have existed, and we 

are very concerned about them. It is a clear indication of their willingness to use their wicked ideology and to spread it and to support 

other terrorist groups. These links are links that we want to work 

to break. Certainly, we are in close contact with the Israelis about 

this and everybody else who could be of——

Mr. BERMAN. Can you illustrate how that works, how those links 

are made? What kinds of activities are supported or directed? Can 

you link specific terrorist operations with Hezbollah? 
24

Mr. URBANCIC. I will not go into specific operations, but the Palestinian——

Mr. BERMAN. Could you if this were a closed session? 

Mr. URBANCIC. We could certainly say a lot more. 

Mr. BERMAN. In other words, you do not have such information, 

or you do not have such information you want to share. 

Mr. URBANCIC. We have additional information that we could 

share in, you know, a more closed forum. 

Mr. BERMAN. Okay. All right. 

Mr. URBANCIC. But it is not a secret, and we do not try to hide 

the fact that Hezbollah clearly is interested in expanding its links 

to other terrorist organizations around the world, and it certainly 

has in the West Bank and Gaza. 

Mr. BERMAN. ‘‘Links’’ is a funny term. 

Mr. URBANCIC. Support. 

Mr. BERMAN. Support. So, in this case, there are people working 

with Hezbollah and not for operations inside Lebanon or at the border with Israel but in the West Bank in Gaza. 

Mr. URBANCIC. Again, Hezbollah’s primary focus is Lebanon, 

which is not to say it does not also want contacts and support from 

and to other terrorist organizations, like minded, particularly antiIsraeli ones. 

Mr. BERMAN. All right. Can you give an estimate of the number 

of rockets you think Hezbollah now still has, based on what remains and what has been resupplied, in Lebanon? 

Mr. URBANCIC. I will take the question. I cannot give it to you 

at this moment because I do not know. 

Mr. BERMAN. You will take the question and try to answer it? 

Mr. URBANCIC. Yes. 

[The information referred to follows:]

WRITTEN RESPONSE RECEIVED FROM MR. FRANK C. URBANCIC, JR. TO QUESTION

ASKED DURING THE HEARING BY THE HONORABLE HOWARD L. BERMAN

We do not have firm information in this regard. Hizballah has claimed 20,000 

rockets, but we are not in a position to confirm or deny that number.

Mr. BERMAN. Okay. To what extent do we see activity by 

Hezbollah to rebuild infrastructure, to reestablish bunkers, to, in 

a sense, repair the damage done to their organizational military capabilities from the recent war? 

Mr. URBANCIC. I think there is no doubt that they are trying to 

get resupplied and that the Iranians are happy to do that. At the 

moment, their emphasis, though, seems to be on establishing and 

consolidating their political base inside Lebanon, and they are 

doing that, as you know, through reconstruction efforts and 

through the spreading around of a lot of money, which is not to say 

that they have neglected their military wing, but the military part, 

for the moment, is not their emphasis, which is not to say that they 

are not going to do it the week after next. 

Mr. BERMAN. My final question. I think you may have covered 

this, but I was not quite sure what the answer is. Since the conflict 

with Israel, since the cease-fire resolution and the direct conflict 

ended, do we have evidence of resupply across the Syrian-Lebanon 

border of Hezbollah of military equipment? 
25

Mr. URBANCIC. Let me take that question, and I will answer it 

back to you in writing. 

[The information referred to follows:]

WRITTEN RESPONSE RECEIVED FROM MR. FRANK C. URBANCIC, JR. TO QUESTION

ASKED DURING THE HEARING BY THE HONORABLE HOWARD L. BERMAN

Yes, we believe, based on information received, that resupply is occurring. We do 

not yet have sufficient information to make a public case.

Mr. BERMAN. Okay. Thank you, Mr. Chairman. 

Mr. ROYCE. Thank you, Mr. Berman. 

We are going to go to Mr. Rohrabacher and then Ms. Berkley of 

Nevada. 

Mr. ROHRABACHER. Thank you very much, Mr. Chairman, and 

thank you for your leadership, Mr. Chairman, that you have provided in delving into issues that are so significant for our wellbeing as a people and the safety of our families today, and I appreciate the good work that you are doing, as represented by this 

hearing today. 

I would like to go on record right off the bat saying that I do not 

believe that it is appropriate for our Government to approach 

Hezbollah infiltrators into our country as potential fundraisers. I 

think that as we look at these people, we should be examining 

them as probable future terrorists and not just part of a fundraising team. 

Mr. Chairman, when I take a look at the way the world works, 

Hezbollah does not have to raise $10,000 at a mosque in order to 

support its terrorist operations in Lebanon and in the Middle East 

or in other parts of the world. They have tens of millions of dollars, 

if not hundreds of millions of dollars, available to them from Syria 

and Iran and other nation states, and the idea that they are coming over here simply to make contacts with a mosque in order to 

get a few thousand dollars, I think, has been counterproductive to 

the FBI and intelligence effort because it actually has put us at 

odds with some people at these mosques who may well be supporters of ours, if they were approached in a different way. 

With that, let me ask you this. Have you been deterred? Has 

there been any hesitancy on the part of people like yourselves to 

engage in tough questioning of Hezbollah and other terrorist suspects due to the hoopla that we have seen in recent days in Washington, DC, about how you treat people who are incarcerated who 

are involved with terrorist networks? 

Mr. KAVANAGH. Sir, I would like to make a couple of things clear. 

First of all, we are not saying all Arab mosques are engaged in terrorism, and what we do is basically, as you know, a very thorough 

investigation. Under the laws of the Constitution, what we have 

here, we are bound by them. If we can only show that these people 

are providing material support, then that is what they are going 

to be charged with. So you are saying that all fundraisers——

Mr. ROHRABACHER. I am trying to tell you, my guess is, unless 

you can tell me now—maybe you have statistics—that the amount 

of material support coming out of, for example, hitting up mosques, 

local mosques, for contributions, is significant as compared to the 

hundreds of millions of dollars being shipped into this movement 

by Syria and Iran and others. 
26

Mr. KAVANAGH. I would say, sir, if you asked me a question pertaining to the population that sympathizes or supports Hezbollah 

in this country, I would tell you that this is what we are seeing 

in the United States. We are seeing the support through the charitable organizations to funnel money back to Lebanon. 

Mr. ROHRABACHER. How much are we talking about? 

Mr. KAVANAGH. Excuse me? 

Mr. ROHRABACHER. Are we talking about $1 million, $2 million, 

$5 million, $100,000? 

Mr. KAVANAGH. I could tell you sir. I do not have the exact figure 

in front of me, but with the Middle East charitable organizations 

that are funneling money back to terrorist organizations, it is in 

the millions. 

Mr. ROHRABACHER. Okay, from the United States. 

Mr. KAVANAGH. Correct. 

Mr. ROHRABACHER. Okay. When you say ‘‘in the millions,’’ I take 

it that that is a couple of million dollars, not $100 million. I guess 

what I am trying to suggest to you is that approaching these people 

as fundraisers, my guess is that the fundraising activity is only 

used, frankly, as a cover in order for people to make contact and 

find potential people who might be sympathetic with them rather 

than as an actual instrument of raising the funds necessary to conduct a terrorist operation. 

I have to move on to one last question because I see my red light 

is on there. 

And, again, we have got to get tough with Syria and Iran to the 

degree that we, in some way, enrage Muslims that could be our 

friends, that is counterproductive. Did the Saudis and the Jordanians and the Egyptians, during this recent fighting and the battle between Israel and Hezbollah and Hamas, did not the Saudis 

and the Jordanians and Egyptians, did they actually come out pretty much condemning Hezbollah, as they should have, I might add, 

because Hezbollah obviously started, as their Chairman noted, 

started shooting rockets into Israel, and Israel’s response, I think, 

was totally justified. 

But usually we do not see the Saudis or the Jordanians and the 

Egyptians come on board in condemning that type of activity, but 

did we not see that this time? 

Mr. URBANCIC. Congressman, yes, and what we saw was an evolution over time in the general public reaction, and as the public 

reaction changed, then the public posture of those governments 

changed as well. But yes, especially when the kidnappings took 

place, and the first rockets started hitting Israel, there was great 

shock throughout the Arab world and some considerable understanding of the Israeli position. 

Mr. ROHRABACHER. I close just by suggesting that if we are going 

to win this war with radical Islam, we have got to try our best to 

work with those moderate Muslim elements that also deplore the 

killing of innocent men, women, and children by terrorist actions. 

So thank you very much. 

Mr. URBANCIC. We absolutely concur. 

Mr. ROYCE. Thank you. Ms. Berkley, and then we will go to Mr. 

Weller of Illinois. 
27

Ms. BERKLEY. Thank you, Mr. Chairman, and thank you, gentlemen, for being here to share your knowledge with us. I have a 

number of questions, but perhaps the first one that I would like to 

get an answer for is, if Hezbollah was created in 1982 for the purpose of ending the Israeli occupation of Lebanon, and the Israelis 

withdrew from Lebanon over 6 years ago, can you enlighten me as 

to what the purpose of Hezbollah is at this point in time? 

Mr. URBANCIC. Well, I remember an old saying that there is 

nothing as permanent as a temporary quonset hut. They had a 

stated goal, but they——

Ms. BERKLEY [continuing]. Which they have achieved. 

Mr. URBANCIC [continuing]. Which they have achieved. They will 

tell you, of course, that Shebba Farms justifies their continued 

military——

Ms. BERKLEY. But I thought that was disputed territory with 

Syria. 

Mr. URBANCIC. Well, should be, but, you know, you have to have 

a fig leaf, and so they have got their fig leaf. 

The fact is they have established themselves. They are a functioning political and other type of party. They are a terrorist organization as well, but they have very deep pockets, and they provide 

a lot of services that the central government has not been able to 

provide in the south, and, therefore, they exist, and they function, 

and they continue to go forward. They really do not need, from 

their point of view, to justify their existence. 

Ms. BERKLEY. Why is it that the Lebanese Government cannot 

provide these services to southern Lebanon? 

Mr. URBANCIC. It has been very difficult for them. They went 

through a 15-year civil war, and now, of course, the situation, we 

hope, is changing, and we are working very strongly with the central government to support the Sinora government to allow them 

to do development down there and to begin to strengthen themselves to a point that they effectively control. This is the first time 

the LAF has been deployed in the south, as you know, for years. 

Ms. BERKLEY. This is my concern. Israel endured 6 years of 

Katyusha rockets being lobbed at them from Lebanon by 

Hezbollah. Now, I understand, or I have been told, that Katyusha 

rockets are very inaccurate, but if one lands on you, it is extraordinarily accurate. 

Hezbollah kidnapped two soldiers that started a war with Israel 

in August that, quite candidly, was tragic, not only for the Israeli 

people, and I think it was, but particularly for the people of Lebanon. There was a level of sophistication of weaponry and technology that heretofore had not been fully appreciated. After 32 

days of serious bombardment by the Israelis, IDF, which is supposed to be the best military force in the world, on the very last 

day, Hezbollah was still able to lob 300 rockets into Israel, not exactly something that gives any of us a sense of security. 

I was in Israel the day the cease fire was signed, and it was not 

too long after the cease fire was signed, and 1701 was approved by 

the United Nations, Hezbollah has already declared, through 

Nasrallah, that they are not going to disarm, and he was very brazen in what he said. He bragged, and I know that Mr. Kavanagh 

is going to tell us, perhaps behind closed doors, how many rockets 
28

they are supposed to have, but Nasrallah said he had over 20,000 

rockets that were ready to go and be launched against Israel. That 

is after 32 days of being bombarded. 

We know for an absolute certainty that Iran, with the help of 

Syria, is re-arming Hezbollah, even though that is against the 

United Nations resolution that was passed by the Security Council, 

and they have already stated that they have no intentions of ceding 

any land in southern Lebanon to the Lebanese military, and they 

are not going to adhere to U.N. Resolution 1701. 

So, knowing all of these things, and knowing that the European 

Union—I do not know what one has to be to be named a terrorist 

organization by the European Union and the fact that the Arab 

countries and our so-called ‘‘allies’’ in the region, which, in my 

opinion, is a joke, to call very many of the Arab nations an ally of 

the United States of America. I think perhaps they have the most 

vested interest in disarming Hezbollah and eliminating this threat 

to Lebanon. 

I do not see them doing anything. I do not see the European 

Union doing anything, and I am very concerned that the United 

States of America cannot go alone in this. Now, what do you think 

it will take to get the rest of the world engaged in this war against 

terrorism, which will have profound repercussions and ramifications to not only the State of Israel but certainly Lebanon, the entire region? 

Mr. URBANCIC. A number of points. I will try to address as many 

as I can, and please remind me of the ones that I miss. 

I think the first thing we have to do is implement 1701. That is 

the primary thing. We do have good cooperation. The Germans are 

actually involved. 

Ms. BERKLEY. What about the Lebanese Government? 

Mr. URBANCIC. And the Lebanese Government as well, absolutely. We have to work with the Lebanese Government to get 

them the strength to be able to expand their authority in the south. 

There is no doubt that this is a deficient situation. It is not a pleasant situation. It is not one that we want to see continue. 

Mr. ROYCE. We are going to go to Mr. Weller of Illinois and then 

Mr. Cardoza of California. 

Mr. WELLER. Thank you, Mr. Chairman. 

Mr. Urbancic, shifting back to our own hemisphere, we have 

been treated, over the last few weeks, by seeing the President of 

Venezuela publicly embrace the President of Iran, declaring solidarity and support for the Iranian agenda. Last year, President 

Chavez likened his own Bolivarian Revolution to the Iranian Revolution in a speech in Tehran. 

I would like to get from you a perspective. Since Hezbollah is an 

Iranian-sponsored, terrorist group, tell us about what you know, 

and you can share with us, about Hezbollah activities inside Venezuela. 

Mr. URBANCIC. Congressman, I think you may recall, the last 

time I was before this Committee, we spoke of Venezuela, and 

President Chavez was, at that time, just beginning to launch his 

world tour. We are very, very concerned. He has a border with Colombia. Colombia is a center of narcoterrorism. 
29

There is a large Hezbollah nexus to Venezuela. I do not want to 

go into names or details, but it is something that we are conscious 

of, that we are watching, and that we are very concerned about, 

and given the proclivities of the Chavez Government, it is not a reassuring situation at all. 

Mr. WELLER. Well, you mentioned Colombia, and, of course, the 

FARC, the narcoterrorist group—it is internationally recognized as 

such—operates in Colombia, but the so-called ‘‘foreign minister of 

the FARC’’ was found to be in Caracas with Venezuelan identity 

papers giving him Venezuelan citizenship, you know, essentially 

suggesting that FARC operatives may have some sort of safe haven 

in Venezuela. 

Is Hezbollah operating under the same type of opportunity? Is 

there a safe haven for Hezbollah inside Venezuela? 

Mr. URBANCIC. The development of Venezuela as a safe haven for 

all kinds of really objectionable activities is something that we are 

extremely concerned about, and we certainly would not exclude 

Hezbollah activities in Venezuela as an area that we need to watch 

and worry about. 

Mr. WELLER. We have seen an increase in anti-Semitic activity 

in Latin America. Last year, there were armed military sent into 

a Jewish grade school in Venezuela on a school day. Children were 

present. A pretty intimidating action by the Venezuelan Government, and, at the same time, this year we are seeing the Chavez 

Government say, after joint appearances with the Iranian President, that it is going to withdraw diplomatic relations with Israel, 

something I think we should all be very concerned about as we 

watch what is going on in our back yard. 

I realize I am running out of time here, but let me go back a few 

years. You know, Hezbollah, along with its main patron, Iran, was 

involved in this hemisphere in the 1992 bombing of the Israeli Embassy in Buenos Aires, and later, in 1994, they bombed a Jewish 

Community Center in Buenos Aires. Can you share with me what 

the status of holding those accountable for those actions, what we 

are doing to hold the Iranian leadership accountable? But also tell 

us what the current Government of Argentina, the Kirchner Government, is doing to hold those terrorists accountable for those actions against the Jewish community, as well as the Nation of Israel 

and their own capital. 

Mr. URBANCIC. The Kirchner Government actually is active. I 

think that we would all agree that there were some mistakes made, 

particularly with the Interpol red notices, but they are actively pursuing this case, and we think, and we hope, that when they get to 

the point of issuing new warrants, that Interpol will honor those. 

The Iranian connection is clear. It is hard to imagine a country 

that has worse relations than us with Iran, and we are doing everything we can to bring that government, to make it accountable 

for a whole host of horrible terrorist associations that it has and 

groups that it supports. It is a tough slog. We have not succeeded 

in convincing some of our best friends—not our best friends but 

some of our critical allies to take a harder stand, but we are working very hard in the U.N. and elsewhere to bring the Iranians and 

to make them accountable and to get them to change their behav-
30

ior. That has not been an easy row to hoe. Thank you, Mr. Chairman. 

Mr. ROYCE. Mr. Cardoza? 

Mr. CARDOZA. Thank you, Mr. Chair. I know we may have votes 

at any minute, so I will try and be brief. I appreciate you holding 

this hearing. I continue to be concerned, as this whole Committee 

does, on the whole threat of shoulder-fired missiles targeting domestic aviation. 

When you put them in the hands of these people, who have clearly demonstrated their lack of concern for civilian populations by firing Katyusha rockets at Israel—a number of Members of this Committee, including Ms. Berkley and I, traveled to Israel about 3 

years ago, and the day after we left a particular kibutz that we 

stayed in overnight, the kibutz was fired on by Katyusha rockets. 

This is not a new phenomenon. It has been going on in Israel for 

years, the firing of rockets against innocent civilians in that country, and the recent war just made it more of a concern. 

What concerns me even more is Hezbollah’s efforts to win the 

hearts and minds of the world population and the Lebanese population by their perceived altruistic contributions to that population, 

and, in my opinion, it is surrogates trying to allow them to buy 

friends in that population. Clearly, they are spending billions of 

dollars in the reconstruction effort in Lebanon. 

My question to you is, can you trace where those billions of dollars are coming from, and are you able to tell us where those dollars are coming from today? 

Mr. URBANCIC. I cannot say to the extent of 100 percent, but 

there is no question that Iran is supplying very significant amounts 

of money to Hezbollah, and much of that goes through Syria, and 

it is supplied because, as you say, the Iranians want to use 

Hezbollah as a surrogate. They want to strengthen Hezbollah as a 

counter, from their point of view, to Israeli influence in the region, 

and they want to, frankly, use them as proxies against us. It is a 

straightforward proposition. 

Mr. CARDOZA. Any good detective will tell you, if you want to find 

the base of criminal activity, find out who the criminal is, you follow the money. Do you have any idea the degree, how much money 

they are getting, and do you also know of any legitimate means 

that Hezbollah has of raising dollars in Lebanon itself? 

Mr. URBANCIC. The dollar contribution of Iran to Hezbollah, I 

could not tell you. I do not know. I can try to find out, and if we 

can give you an answer, I will send it to you. 

[The information referred to follows:]

WRITTEN RESPONSE RECEIVED FROM MR. FRANK C. URBANCIC, JR. TO QUESTION

ASKED DURING THE HEARING BY THE HONORABLE DENNIS A. CARDOZA

Because of the clandestine nature of funding for Hizballah, we can only estimate 

its financial resources. Iran probably provides in excess of $100 million per year. 

Hizballah also receives funds from other sources, including private charitable donations made to its social and cultural organizations, and profits from businesses, like 

its construction arm, Jihad al-Binaa. Post-conflict, Hizballah promised to pay between $10,000 and $12,000 for each household to compensate for the loss of a home, 

apartment or other dwelling. One estimate says that 15,000 people have received 

this payout. If only half that number were paid at the lower figure, that makes a 

minimum of $75,000,000. So far as we know, most of this funding has come from 

Iran.
31

Mr. URBANCIC. But, yes, Hezbollah, as I was mentioning to Congresswoman Berkley, it is more than a military organization. It is 

a military organization, it is a terrorist organization, but it is also 

a business. It runs TV stations. It runs banks. It runs hospitals. 

It runs clinics. It has a whole series of, if not legitimate, at least, 

on the face of it, innocent-appearing corporations. It has a very 

wide reach throughout Lebanon and throughout the world, and it 

has a huge fundraising mechanism. It does diamonds. It does—you 

name it. 

Mr. CARDOZA. Thank you. 

Mr. ROYCE. Thank you. We will go to Mr. McCaul of Texas. 

Mr. MCCAUL. Thank you, Mr. Chairman. 

It has been commented upon, the relationship of Chavez to Iran. 

He has embraced the Islamic Jihadists. Marguerita Island is a 

known Hezbollah haven. The tri-border area is of concern. 

Recently, Mahmoud Kourani was arrested. He was the Hezbollah 

operative who, as I am sure you are aware of, smuggled across the 

United States-Mexico border the brother of the Hezbollah chief of 

military operations in southern Lebanon. That puts it squarely in 

our hemisphere and our own back yard. 

In Beirut, he paid $3,000 to bribe a Mexican Consulate if I recall 

for a Mexican visa and was smuggled into California by a ‘‘coyote.’’ 

He pled guilty, was arrested, and then was convicted of being a 

member, fighter, recruiter, and fundraiser for Hezbollah. That 

deeply concerns me, and I know there are many other cases like 

Kourani. 

My question is twofold, and that is, in my experience in the Justice Department in counterterrorism, you read Lightning out of 

Lebanon, the cell in North Carolina that was busted. How many 

Kouranis do you believe are here, and how easy is it for them to 

go from support cells, in other words, financing, to operational? As 

we ratchet things up with Iran, I am concerned about these cells 

lighting up in the United States. 

Lastly, the influence of Chavez and Hezbollah on the cartels, 

which have completely taken over northern Mexico in the delivery 

routes. 

Mr. KAVANAGH. Sir, to answer your first question regarding how 

easy is it to go from support to actual operations, that is a question 

that, as you know, if somebody is motivated to cause harm, they 

can do it, and that has always been everyone’s concern. 

What we do, though, working together with intelligence communities overseas and with our law enforcement here is try to target 

those that we know are Hezbollah members, who we know have 

the military training, and try to intercept them if we know they are 

trying to head to the country or are in the country. I think, to date, 

we have been very successful regarding that end of it. 

Your distinguished colleague was kind of equating fundraising 

with material support for terrorism, and I would differ with him 

on that. The bottom line, sir, is that it is a good question, and that 

is why we go after anyone who provides any support or anybody 

who sympathizes and basically violates the laws. We go after them 

and try to take them out and get them deported or get them into 

jail because we agree with you, sir, that we do not know what the 
32

intent of a lot of these individuals is and what it would take for 

them to maybe become operational. 

Fortunately, to date, they have not been. Like I said, it has been 

basically a fundraising operation through a lot of low-level criminal 

conduct. We are seeing more now like the bank frauds and more 

of the narcotics trafficking, and that brings it to a different level. 

But that is what we are seeing, at least in regard to the Hezbollah 

members or sympathizers that are in this country. 

Mr. MCCAUL. Okay. The second half of my question, again, is 

what influence, if any, do you believe Chavez and Hezbollah are 

having on the cartels? 

Mr. URBANCIC. On the cartels. I am not sure which way it works, 

actually. He is not a guy who is tough on crime, and we are very 

worried about it. I think that links, more than links—I think that 

there is a relationship there, and I think it is one we have to worry 

about, and it is one we have to counter. 

Mr. MCCAUL. I see my time has expired. Thank you, Mr. Chairman. 

Mr. ROYCE. Mr. Sherman? 

Mr. SHERMAN. It is easy to see why Hezbollah is an effective 

criminal organization because it can use an ideology to create the 

unity that other criminal organizations do not have when every 

member is in it plainly for their own economic gain. 

We have not been able to convince the Europeans that Hezbollah 

is a terrorist organization. Have we been able to convince some 

that it is a criminal organization, and, if not, why not? 

Mr. URBANCIC. Yes and no. I mean, everything that we can possibly share with the Europeans, we take to the Europeans, and 

then it is up to the Europeans to decide. You understand that very 

clearly. But we are actively pursuing every avenue that we have 

with the Europeans. They do not always respond because they do 

not always see it as in their interest. When we do have criminality 

involved, the Europeans tend to be more responsive, and it is a 

clearer-cut picture. 

Mr. SHERMAN. Mr. Urbancic, you are coordinating our effort 

against terrorism, and we have to get the entire world on our side 

on Hezbollah and related issues. It occurs to me we have had some 

difficulty. 

Are you consulted with regard to what our position should be on 

issues that Russia cares about that are outside the area of 

antiterrorism, and what I am referring to here is linkage; that is 

to say, when we are trying to decide whether to accept Russia’s policy toward Moldova or Abkhaza or whether to confront Russia and 

take an anti-Russian position, does anybody come to you and say, 

‘‘Well, what do you need from the Russians on the antiterrorism 

front?’’

Mr. URBANCIC. I mentioned earlier, we just completed our Joint 

Working Group on Counterterrorism with the Russians about 2 

weeks ago, and one of the biggest things that we discussed with 

them is how we can link ourselves up, in the G–8 and elsewhere, 

on counterterrorism. 

Mr. SHERMAN. Sir, I think you are misconstruing my word ‘‘linkage.’’ You are going to work with antiterrorism officials in Russia. 

Mr. URBANCIC. And the foreign minister. 
33

Mr. SHERMAN. And the deputy foreign minister and important 

people in Russia, and they are going to have to decide things like, 

will Russia list Hezbollah as a terrorist organization, and you are 

going to have a mixed record on your ability to get Russia on our 

side on important terrorism issues, especially Hezbollah, and Russia has not been as anti-Hezbollah has it ought to be. 

The question is, have we offered to Russia to ameliorate our policies toward Abkhaza, Moldovia, or any other nonterrorist issue in 

order to get them on our side on Hezbollah? 

Mr. URBANCIC. I think we do not want to compromise principles, 

but it is clear that when we work with the Russians, as we work 

with almost any other country, the better the relationship is in 

other areas, the better the relationship is in additional areas. A 

quid pro quo, you can have Abkhaza, and will you give us 

Hezbollah? Probably not, but we want to work and find a way to 

work with the Russians to bring them around. 

Mr. SHERMAN. But does the guy in the State Department who is 

talking to the Russians about Abkhaza or Moldovia talk to you? 

Mr. URBANCIC. Sure. Absolutely. We are in the same room all of 

the time. 

Mr. SHERMAN. Okay. Then there is the hope for a little bit more 

linkage behind the scenes. I have had top State Department officials tell me, we absolutely refuse to link any other issue with the 

Global War on Terrorism, and I think that that is the chief explanation of our failure to get the international support that we need. 

I know that we want to bring in the other panel, but I do want 

to ask the other witness a question, and it is kind of outside the 

scope of this Committee, but what do we need to do with our domestic laws on the books in order to give you the tools you need 

to prevent terrorists from either raising money here in the United 

States or organizing cells to carry out operations here in the United 

States? 

Mr. KAVANAGH. Sir, with all due respect, I am probably going to 

leave that one to the director, but I think, sir, that we have a lot 

of the tools necessary to disrupt and dismantle. I think what the 

problem we are seeing, sir, is the immigration issues that, I think, 

are very important to this country. I think that we are basically 

seeing a lot of people who are coming through the front door getting into this country and getting established who probably should 

have been blocked before they got into the country. 

So I think that the domestic security issue is one of the things 

that, as a team, I think we have bigger issues. I think law enforcement works really well with the laws we have right now. I am sure 

that the director could probably come up with a few to tighten up 

here and there, but, at the same time——

Mr. SHERMAN. I want to interrupt you. You seem to be saying 

that we are allowing to immigrate to the United States legally persons who may subscribe to extreme Islamist views. 

Mr. KAVANAGH. No, sir. What I am saying, sir, the Detroit case 

is a perfect example where we are seeing there is a lot of fraud, 

there is a lot of stuff that is being done by the individuals that are 

getting into this country, and I think that we are seeing a lot of 

that with regard to a lot of our terrorist investigations. 
34

As law enforcement entities and as a community, I think we 

need to take a real hard look at what we probably need to do to 

basically prevent a lot of the fraud and prevent a lot of the stuff 

that allows these people into the country who then engage in lowlevel criminal activity and engage in the support back home of funneling the money back to the terrorist organizations. 

Mr. SHERMAN. Okay. I yield back. 

Mr. ROYCE. Thank you, Mr. Sherman, and, Mr. Sherman, I think 

this is one of the issues that we have investigated with our Committee. We had a hearing on USCIS and whether it was broken in 

regard to its ability to check this kind of fraud. 

Gentlemen, we appreciate it very much. 

We are going to ask now for our next panelists to come forward, 

and we are going to go right to their testimony. As they are coming 

forward, I am going to introduce them. 

Mr. Eitan Azani is a senior researcher at the Institute for Counterterrorism in Israel. He is an expert on terror organizations in 

the Middle East, particularly on Hezbollah. Mr. Azani was formerly 

the head of intelligence in the Lebanon Division of the Israeli Defense Force, prior to which he served as head of the intelligence 

branch of the Israeli Air Force. Dr. Azani is a colonel in the Israeli 

Reserve. 

Colonel, thank you for traveling here. Your institute was kind 

enough to host me on a recent trip to Israel and I met several of 

your colleagues at that time. 

We next have Mr. Christopher Hamilton. He is a Senior Fellow 

in Counterterrorism Studies at the Washington Institute. Prior to 

joining the institute, he had a distinguished FBI career for over 20 

years. Mr. Hamilton served in the Bureau’s Counterterrorism Division. His work involves strategic planning, providing guidance to 

field investigators, overseeing counter-espionage operations, and 

implementing the FBI’s first overseas Arab language instruction 

program. Mr. Hamilton received numerous awards for his service, 

including a Director of Central Intelligence Meritorious Unit Citation in 1993. 

Lastly, we have Mr. Ilan Berman, vice president for policy at the 

American Foreign Policy Council. He is an expert on regional security in the Middle East, Central Asia, and the Russian Federation. 

Mr. Berman has consulted for both the U.S. Central Intelligence 

Agency and the U.S. Department of Defense, and Mr. Berman is 

the author of Tehran Rising: Iran’s Challenge to the United States, 

and he is also co-editor of Dismantling Tyranny: Transitioning beyond Totalitarian Regimes. 

Gentlemen, thank you very much. Dr. Eitan Azani, if you would 

like to begin. Please summarize in 5 minutes. Thank you. 

STATEMENT OF EITAN AZANI, PH.D., SENIOR RESEARCHER, 

INSTITUTE FOR COUNTERTERRORISM, HERZLIYA INTERDISCIPLINARY CENTER, HERZLIYA, ISRAEL 

Mr. AZANI. Thank you very much for inviting me here to speak 

before the Committee. I want to start with a sentence saying 

Hezbollah is a pragmatic terror organization of global reach, a 

pragmatic but not a moderate organization, a pragmatic but dan-
35

gerous organization since the beginning of the organization during 

the eighties. 

Nasrallah, using a double-faced policy, on one hand, to blur the 

identity of the organization as a terrorist organization and to emphasize the identity of the organization as a political party inside 

Lebanon and social party inside Lebanon. If we look at the flag of 

the organization, we can see the global aspiration of the organization. We see here the globe. 

The other issue is the violence. The organization uses violence. 

We see the hand with a rifle, which means, at the end of the day, 

they say ‘‘resistance,’’ and I say ‘‘violence.’’

The goals of the organization. A sentence said that Hezbollah are 

the winner. Looking into some notes regarding the principles, ideology, and aim of the organization, the principles came from the 

heritage of Khomeini. ‘‘Activism’’ means violence. ‘‘Self-sacrifice’’ 

means the culture of suicide bombing. The role of the religious 

scholars inside the organization: Who are the enemies, global enemies? The great Satan, United States; greater Satan, Israel; and 

the corrupted Muslim regimes in the region. 

What are the goals? Establishing an Islamic state in Lebanon. 

Even today, we think about Hezbollah as trying to establish an Islamic state in Lebanon today. Destroying Israel: Death to Israel 

and also death to the United States. Promoting the concept of 

ummah, led by the Shiites. As you can see here, a picture showing 

how they educate their children in this organization. 

I was asked, can a separation be made between the organization’s social, political, and military wings, and Hezbollah answered 

there is only one leadership in Hezbollah, through members, senior 

members, of Hezbollah have said during the last year. One of them 

is Muhammad Fanish. Currently, he is a minister in the Lebanese 

Government. He said very clearly, no distinction should be made 

between the military wing and the political wing of Hezbollah. The 

other declaration by Naim Kassan—he is the deputy of Nasrallah—

said there is only one leadership in Hezbollah, and its name is the 

Shura Council, which is the decision-making council of the organization. It directs the political, military, cultural, and social activities of the organization. 

What is the Hezbollah Shura Council? Seeing the photos of the 

Shura Council, the members of the Shura Council of Hezbollah, we 

can see that there are seven Lebanese members—most of them are 

religious scholars—and two Iranians. Most of these members are 

heads of other Subcommittees of the organization. 

For example, Imad Mugniyah, one of the most wanted by the 

FBI, on top of the list of the FBI, is the head of the Jihad Council, 

and he sits on the Shura Council. Other members are the head of 

the Political Council, the Executive Council that carries out social 

activities, which means, at the end of the day, in the same Shura 

Council sitting together, are the military and terrorist branches of 

the organization and the other social and political branches of the 

organization. 

What is Hezbollah’s uniqueness? Hezbollah is backed by a twostate sponsor of terrorism, and more than that, it is a state within 

a state in Lebanon, which means it is backed by three state sponsors of terrorism. It is operating inside and outside the political 
36

system in Lebanon, trying to promote the goals of the organization 

and to exploit the Lebanese political system to promote the organization’s interests. 

It is well equipped and well trained, and even as you can see 

here, Nasrallah declared that even though his members are in the 

Parliament, he did not withdraw his Jihadist responsibilities, 

which means we are playing in these two places. 

Hezbollah versus Israel; we see that Hezbollah initiated direct 

and indirect operations against Israel from Lebanon and through 

the Palestinians. What we see is a pure terrorist strategy of the organization in the second Lebanon war. Why? Intentionally and 

knowingly, attacking the Israeli cities; this is a pure terrorist act. 

Through the Palestinians, organization tried to support and promote terror attacks as a means to disrupt possible agreement of political initiatives between Israel and the PA. In Iraq also, the organization carried out a terror attack. 

Some words regarding Hezbollah in a second Lebanon war: First 

of all, we speak about strategic changes in Lebanon that are still 

in process, so it is very difficult to evaluate what it will be. One, 

for sure, is the decrease of Hezbollah power in south Lebanon, and 

there is an unstable situation in the region. 

There is risk and opportunity, which means we have two main 

possible developments. One is more decreasing of Hezbollah power; 

the other, get Lebanon in civil war again. The crucial condition to 

decreasing Hezbollah power is the survivability of Seniora’s government in the field. 

[The prepared statement of Mr. Azani follows:]
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Mr. ROYCE. Thank you, Mr. Azani. I think we will get to some 

of your other points during Q&A, and we will now go to Mr. Hamilton. 

STATEMENT OF MR. CHRISTOPHER HAMILTON, SENIOR FELLOW, COUNTERTERRORISM STUDIES, THE WASHINGTON INSTITUTE FOR NEAR EAST POLICY 

Mr. HAMILTON. Thank you, Mr. Chairman. 

I would like to pick up where both you and Representative Sherman left off before and reemphasize the fact that in order to understand Hezbollah, we need to look at the whole situation in the Middle East. Certainly, in one big salad bowl there are two other 

issues there that I do not think you mentioned. The issue is an 

emerging Sunni-Shia split and the possibility of a transnational 

Shia organization equivalent to the Sunni. 

The analysis of this conflict is important, and I would like to 

make several conclusions regarding the conflict that just ended because I think everybody else is looking at that, the Israelis are 

looking at it, Hezbollah is looking at that, and we should also because I think there are a number of lessons to be learned. 

Certainly, the first is that they are very confident, and anybody 

who watched Hassan Nasrallah last week, in front of 500,000 people, as he sneered at the United States and made a lot of statements very boldly. This is the man that is in charge. He is cracking 

jokes. He knew what he was doing, and he is clearly somebody that 

we need to contend with. 

Let me just go right into about six conclusions that I have made, 

very general. Some of these overlap with what has already been 

said. 

The first is, as we know, and I just said that Hezbollah is a very 

well-managed organization, and at the risk of dating myself, I go 

back to the Redskins back in 1970 when George Allen said he 

wants veterans on his football team. That is what Hassan 

Nasrallah has. He has very experienced people working his organization. That is unlike many other organizations, and that makes 

him a very formidable organization, passing these instincts down 

to Hamas and PIJ as well. 

Secondly, the war did not impact their terrorist capability. They 

were hurt significantly—do we have to adjourn here? 

Mr. ROYCE. We have 15 more minutes, and I would like you and 

Mr. Berman to conclude, and then we will ask you some questions. 

Please continue. 

Mr. HAMILTON. Very good. I have another 3 minutes to go. 

The war did not impact their terror capability. It did impact 

their military capability. These are two separate entities. Inside 

the Hezbollah organization, their terrorist capability remains very 

robust. As I said in my statement, they planned nine terrorist attacks inside Israel. 

I think the upshot of that is that we need a second U.N. resolution, 1702, somehow to address the terrorist issues that still exist 

there. They still have training camps and they still fund terror operations, and something needs to be done about that. 

Hezbollah’s stature relative to its other patrons has been elevated. There is no longer a patron-client relationship between these 
63

organizations and Hamas. This is a semi-independent state actor 

emerging in the Middle East. As was mentioned before, they have 

a very close relationship with Venezuela and Cuba, and I will discuss that in just a second. 

The third issue that I would like to raise is the robust intelligence-gathering capability of Hezbollah. They penetrated the IDF 

in northern Israel very effectively. They knew about the IDF maneuvers. They were able to anticipate that. They have a surveillance capability, records keeping. They have everything. 

This concerns me in the United States with Venezuela because 

Venezuela is here, Cuba is here. Any kind of coalition or alliance 

between these organizations gathering intelligence in the United 

States is certainly not to our interest. 

I see no evidence that Hezbollah and al-Qaeda have formed any 

kind of alliance at all, and I do not see that happening in the future. 

Despite all of this that we are talking about, what do we think 

of the threat from Hezbollah? I would assess that threat as moderate, and breaking that down into intentions and capabilities, I 

think their intentions are low at the moment. In the past, they 

have not conducted violent attacks against us or Israel outside the 

region unless they were provoked, and they are, so far, not provoked. So I would assess their intentions as being fairly low. 

Their capabilities are high. We have already discussed all of that. 

They do have people here in the United States, and we have to assume that those people have some sort of capability to do some 

kind of military operation. The question was asked to John 

Kavanagh before about is the FBI looking at that, and, absolutely, 

the FBI will see that. They are watching for that, and just because 

they see fundraising does not mean they do not see military and 

violent activity. 

Lastly, Hezbollah’s capabilities inside the United States. There 

are a couple of things that I am concerned about. Hezbollah, as 

well as Hamas and PIJ (Palestinian Islamic Jihad), they all know 

that we are watching them. They are very aware of what we do, 

and they are getting very, very good at deflecting our investigations 

and using our laws against us. It is becoming very, very difficult 

to get convictions now. They have very good lawyers, and that is 

becoming certainly a problem for us. 

Secondly, they are very good at resurrecting themselves. As I included in my statement, I noted that the assistant secretary of the 

Treasury, Stuart Levey, mentioned the fact that these organizations are recreating themselves. Once one goes down, another one 

pops up right behind it, and they are already doing that. Thank 

you very much. 

[The prepared statement of Mr. Hamilton follows:]

PREPARED STATEMENT OF MR. CHRISTOPHER HAMILTON, SENIOR FELLOW, COUNTERTERRORISM STUDIES, THE WASHINGTON INSTITUTE FOR NEAR EAST POLICY

Mr. Chairman and Members of the Committee: 

I have been asked to speak to you today about Hezbollah and the threat it poses 

to the U.S. In this regard, your committee has posed a number of questions which 

I will try to address briefly at the end of my comments here and in more detail in 

the question and answer period which follows. 

In responding to your questions, I will attempt to focus my analysis on the situation which now exists following the recent conflict between Israel and Hezbollah. 
64

This conflict was, I believe, an important event that should be studied carefully in 

terms of its impact on the future policies of both sides. To this end, I would like 

to first make some very general conclusions regarding Hezbollah and then discuss 

these conclusions in more detail in the time I have remaining. 

First, while this conflict did have an important impact on the military capabilities 

of both Israel and Hezbollah, its impact on Hezbollah’s global terrorist capability 

was negligible. More specifically, this conflict had very little, if any, impact on 

Hezbollah’s capability to conduct terror operations or to train and support other terrorist organizations—most notably, those opposed to the Middle East Peace Process. 

These capabilities remain intact and robust. 

Second, while it may be early to draw this conclusion, Hezbollah, by virtue of its 

actions in this conflict, now seems to be less of a proxy for Iran and more of a junior 

partner in an alliance. For this reason, Hezbollah will be an influential actor in 

Middle East politics for the foreseeable future. 

Third, notwithstanding its heightened stature in the so-called ‘‘Arab Street,’’ I 

would assess the overall terror threat from Hezbollah in the U.S. in the aftermath 

of this conflict to be unchanged at level between moderate and low. Breaking this 

assessment down further, I believe Hezbollah’s intentions to conduct a terror attack 

against the U.S. under the present circumstances to be low while its capabilities are 

from moderate to high. I say ‘‘other organizations’’ because Iran funds and supports 

at least two other terror organizations which have significant representation in the 

U.S.—HAMAS, and Palestinian Islamic Jihad (PIJ). We should not, therefore, discount the threat from all three of these organizations which could work in close coordination with one another should our confrontation with Iran escalate. But I want 

to emphasize here that at the present time and under the present circumstances, 

I see very little immediate threat from any of these organizations. I will expand on 

this shortly. 

Fourth, one often overlooked factor regarding Hezbollah’s threat to the U.S. concerns its intelligence collection capability. One of the findings of the recent conflict 

in Lebanon has been the emergence of a very capable intelligence apparatus on the 

part of Hezbollah which was used against the Israelis. This intelligence apparatus 

showed great skill in collecting clandestine intelligence inside Israel and in rapidly 

exploiting this intelligence on the battlefield. We must assume that Hezbollah is 

building a similar apparatus here in the U.S. not only for its own purposes but to 

assist Iran and Iran’s allies in the Western Hemisphere (such as Cuba and Venezuela) also. 

Fifth, we continue to find little credible evidence of an alliance between Hezbollah 

and the Sunni Transnational terror networks such as al-Qaeda and its affiliate 

groups. This may be the result of the emerging Sunni-Shia split, alluded to above. 

Lastly, relative to Hezbollah’s capabilities in the U.S., we must not, as other countries have done, make the mistake of distinguishing between their fund raising and 

charity dispensing functions, on the one hand, and their terror apparatus on the 

other. These two wings—the so-called political and military wings—are one and the 

same and cannot be separated. As such, we must not lose sight of the fact that, notwithstanding all the good works these organizations do for the impoverished populations globally, their raison d’etre is violent terrorism and they remain a serious 

threat to the U.S. and its allies. Inasmuch as this last conclusion relates specifically 

to your questions regarding Hezbollah’s activities in the U.S., I would like to expand 

on this issue by examining it first in the context of Hezbollah’s broader strategic 

intentions. 

HEZBOLLAH’S INTENTIONS

As you are now well aware, Hezbollah’s grand strategy cannot be understood by 

focusing solely on Hezbollah as a solitary actor. To be sure, Hezbollah’s stated objective of bringing about the Islamization of Lebanon remains a high priority. But in 

the near term, Hezbollah’s actions should be understood in the context of other seismic forces developing in the Middle East. These other forces include an emerging 

Iran, the growing strength of the Global Sunni Jihad Movement, what may to be 

an emerging Sunni-Shia conflict, the Israeli-Palestinian conflict, and the deteriorating situation in Iraq. The U.S. has major equities in each of these issues. Moreover, because both Hezbollah and Iran perceive the U.S. and Israel to be a declining 

powers and, conversely, themselves to be powers on the ascent, particularly in the 

Middle East, the U.S. cannot avoid being a potential interlocutor of both Iran and 

Hezbollah in the future.. 

While my co-panelists will be discussing each of these issues separately, I would 

like to briefly discuss here the role of Iran in Hezbollah’s global grand strategy. As 

I have noted above, because of Hezbollah’s heightened stature in the Muslim world, 
65

its relationship to Iran has evolved from that of a patron-client to that more akin 

to an alliance. In this regard, their common interests include the spread of Islam, 

in particular Shia Islam, globally; political dominance of the Middle East region; the 

demise of Israel; the eradication of U.S. influence in the Middle East; and the diminution of U.S. influence globally. One of their primary weapons in this endeavor is 

terrorism. Why? Because terrorism has in the past proven to be an effective weapon 

for Hezbollah to achieve these ends. Indeed, perhaps more than any other terrorist 

organization, Hezbollah is highly skilled at getting results using terrorism. We need 

only recall Hezbollah’s attack on the Marine Barracks in 1983 and their attacks on 

the Israeli Defense Force in Southern Lebanon prior to 2000 to understand how terrorism, under the right circumstances, can achieve results. For this reason, terrorism, perhaps more so than guerrilla warfare, is Hezbollah’s primary weapon of 

choice. This conclusion has important implications for both the U.S. and Israel inasmuch as neither country, I believe, has yet mastered the art of Low Intensity Conflict. 

While we can logically assume that the above issues will lead to growing tension 

between the U.S. and Hezbollah and between the U.S. and Iran, I do not believe 

that, under the present circumstances, a near term terrorist attack by Hezbollah 

targeting U.S. interests is probable. The basis for this conclusion lies in the fact that 

in the past Hezbollah has initiated attacks against U.S. and Israeli almost exclusively in retaliation for direct attacks against Hezbollah. This was the case both in 

the Marine Barracks bombing and in the attacks against Israeli interests in Argentina in 1992 and 1994. 

It should be emphasized, however, that this assessment does not apply to 

Hezbollah activities inside Israel, the West Bank, and Gaza, where Hezbollah’s intentions and capabilities to conduct terror attacks remain very high. Indeed, Israeli 

security authorities recently advised that during the recent conflict Hezbollah was 

a party to as many as nine failed terrorist attacks in which Hamas, PIJ, and 

Fatah’s al-Aqsa Brigades were its partners. Because one of the unstated objectives 

of both Iran and Hezbollah is the delegitimization of Israel, and because Hezbollah’s 

terror attacks are intended in part to provoke an overreaction by Israel, it must be 

assumed that low level attacks against Israel will continue. In this regard, 

Hezbollah and Iran will remain major partners with these terrorist organizations 

in carrying out this strategy. 

HEZBOLLAH’S CAPABILITIES IN THE UNITED STATES

While we can assess Hezbollah’s intentions at the present time to be low, it is 

important not to ignore the fact that, as mentioned above, Hezbollah continues to 

maintain a robust capability to conduct terror attacks globally. In this regard, it 

should be understood that Hezbollah is well represented in the U.S., Latin America, 

Africa, Southeast Asia, and the Caribbean by a number of front organizations which 

perform a variety of functions for Hezbollah, to include fund raising, recruitment, 

public relations, and logistical supply. Recognizing this, the Department of 

theTreasury has recently blocked the assets of two Hezbollah affiliated commercial 

enterprises (Bayt al-Mal and the Yousser Company), both headquartered in Lebanon, one individual (Husayn al-Shami, the Head of Byt al-Mal), and one overseas 

fund raising organization (the Islamic Resistance Support Organization). 

With regard to the operation of foreign terrorist organizations in the U.S., there 

are two points I would like to make. First, these organizations are well aware of 

our interest in them and what our intentions are. To this end, they have become 

experts in the art of concealing their activities. This applies not only to Hezbollah, 

but to Hamas, PIJ, and other Islamic terror organizations as well. In fact, there is 

a term in the Islamic lexicon for this which originates from the era of the Prophet 

Mohammad—al-Takiyya. Muslim extremists, both Sunni and Shia, take pride in 

their ability to employ al-Takiyya to divert suspicion from U.S. authorities. As a result, it is possible that we will find it increasingly difficult in the future to use the 

two principle statutes we have to disrupt terror support in the U.S.—the International Emergency Economic Powers Act (IEEPA) and the Anti-Terrorism and Effective Death Penalty Act of 1996 as terror organizations become more adept at 

evading the requirements of these statutes. 

Secondly, even if we are successful in disrupting the activities of these terrorist 

front organizations via these statues, these groups are becoming very skilled at rapidly creating new institutions in new locations to replace them. For example, earlier 

this year, federal investigators froze the accounts of a Hamas affiliated charity 

known as KindHearts, which was located in Toledo, Ohio. In a statement following 

this action, Stuart Levey, Undersecretary for Terrorism and Financial Intelligence, 

Department of the Treasury, stated: ‘‘KindHearts is the progeny of Holy Land Foun-
66

dation and Global Relief Foundation, which attempted to mask their support for terrorism behind the facade of charitable giving.’’ The Treasury Department statement 

further noted that one of the founders of KindHearts, Khaled Smaili, had ‘‘founded 

KindHearts with the intent to succeed fund-raising efforts of both HLF and GRF, 

aiming for the new NGO to fill a void caused by the closures. KindHearts leaders 

and fund raisers once held leadership or other positions with HLF and GRF.’’

A second example involves the case of Emaddedin Z. Muntasser in Boston who 

was indicted in 2005 on charges of Income Tax Fraud. According to his Indictment, 

in the 1990’s Muntasser was involved in operating the Boston branch office of the 

Al-Kifah Refugee Center (‘‘Al-Qaeda Kifah’’). As you are aware, a number of the 

plotters in the 1993 World Trade Center bombing and later plots had been affiliated 

with Al-Kifah. Following the closure of al-Kifah, Muntasser founded Massachusetts 

Care International, Inc. (‘‘Care’’), a purported charitable organization whose purpose 

was the same as that of al-Kifah. The indictment against Muntasser alleges that 

despite Muntasser’s representations on Care’s Articles of Incorporation that this 

non-profit charity was exclusively involved in ‘‘charitable, religious, educational, and 

scientific purposes,’’ Care was engaged in the solicitation and expenditure of funds 

to support the mujahideen and promote jihad. The indictment also notes that Care 

was located at Al-Kifah Boston’s office and assumed publication of Al-Kifah’s projihad newsletter, Al-Hussam. 

With regard to those charity organizations in the U.S. that are providing material 

support to Islamic terror organizations, we must further assume that they are also 

capable of being used as a potential base for violent terror activities within the U.S. 

should their leadership decide that a terror response is in their interest. It is therefore imperative that the FBI continue to aggressively identify and investigate charities, criminal organizations, and commercial enterprises in the U.S. that are affiliated with terror organizations. 

SUMMARY

In conclusion, I would like to emphasize that Hezbollah is an organization that 

is disciplined, competently managed, and global in its aspirations. For the most 

part, these aspirations, particularly in the Middle East, run contrary to those of the 

U.S. We must also be aware that, like other front for terrorist organizations, 

Hezbollah is skilled in public relations and in conveying a public image which is 

moderate and tolerant. In resolving our differences with Hezbollah, however, we 

must not forget the lessons of the past, the most important being that low intensity 

conflicts cannot be solved through the use of military force alone. Indeed, as a low 

intensity conflict, it will only be through the most skillful use of our political, diplomatic, intelligence, and law enforcement resources that a resolution will be 

achieved. 

Set forth below are my responses to the questions posed prior to this hearing: 

1. What types of activity has Hezbollah engaged in within the United States? 

As noted above, Hezbollah operatives are involved in criminal activities, ostensibly legitimate fund raising, commercial activities, and possible intelligence gathering for future terrorist activities against the U.S. As such, U.S. counter terrorism 

establishment must assume that trained Hezbollah operatives (and Hamas and PIJ 

operatives as well), may also be in the U.S. to conduct traditional intelligence operations, such as to penetrate the U.S. government, collect classified information, and 

to collect target information for further attacks. 

2. How have Hezbollah operatives entered and operated in the U.S.? 

While this question is best answered by the FBI, it can be noted here that there 

have been a number of criminal investigations in the past five years demonstrating 

Hezbollah’s activities in the U.S., the most well known being the case of the cigarette smuggling cell in Charlotte, North Carolina. We must assume that this is not 

the only Hezbollah affiliated entity in the U.S. 

3. To what extent have the overseas activities of Hezbollah guided its activities within 

the United States? 

Hezbollah’s overseas activities, particularly with respect to its relationship with 

Iran and Syria, have played a significant role in its U.S. strategy. As I have described above, it is important to measure Hezbollah’s activities in terms of its strategic objectives in the Middle East, and these include the spread of Islam, political 

dominance of the Middle East region, the demise of Israel, the eradication of U.S. 

influence in the Middle East; and the diminution of U.S. influence globally. 
67

4. Given Hezbollah’s historical activities in the United States, how likely is it that 

it could execute a terrorist attack in the United States? 

For reasons given above, I believe their intentions are presently low to moderate 

while their capabilities are moderate to high. I assess the overall threat from 

Hezbollah to be moderate. 

5. How confident are you that the FBI is aware of the full scope of Hezbollah’s past 

and current activities in the United States? 

I am very confident that the FBI is aware of the full scope of Hezbollah’s past 

and current activities in the United States. I base this assessment on my experience 

in the FBI rather than since my retirement on December 31, 2005. 

6. As a terrorist organization, what makes Hezbollah unique? 

First, Hizballah is a well funded, well trained, disciplined, and experienced terror 

organization. It acquired this capability through a close relationship with Iran. Most 

other terror organizations prefer to remain independent in order to be able to formulate their own strategies without guidance from high authority, such as a terrorist 

state sponsor. In so doing, other terror organizations, such as Hamas and PIJ, trade 

some independence for the support they receive from a patron state. Second, 

Hezbollah has a very effective military wing whose abilities were demonstrated in 

the recent conflict with Israel. Third, Hezbollah has a global capability which they 

have demonstrated in the past, most notably in Latin America, Europe, and the 

Gulf Region. No other terror organization has these capabilities to the extent 

Hezbollah has them. 

7. How does the Hezbollah terrorist organization of today compare with the organization of the 1980s? 

Hezbollah today has is a better trained and more experienced organization than 

it was in the 1980s. In particular, its long history with the Israeli occupation of 

Southern Lebanon, during which it gained valuable battlefield and terror experience, has enabled Hezbollah to become a uniquely effective non-state political actor 

in the Middle East. 

8. What is the extent of its global reach? 

As we now know, Hezbollah has chapters in virtually every continent which perform the functions of fund raising, recruitment, public diplomacy, and clandestine 

activities such as intelligence gathering and terror planning.

Mr. ROYCE. Thank you, Mr. Hamilton. 

Mr. Berman? 

STATEMENT OF MR. ILAN BERMAN, VICE PRESIDENT FOR 

POLICY, AMERICAN FOREIGN POLICY COUNCIL 

Mr. BERMAN. Thank you very much, Chairman Royce, and I 

want to take the opportunity to thank you and thank Chairwoman 

Ros-Lehtinen and Ranking Member Sherman and Ranking Member Ackerman for holding this hearing and for inviting me. 

You have in front of you my personal statement, my prepared 

statement, so let me just elaborate on a few points here. 

I have been asked specifically to talk about Hezbollah’s relationship with Iran, and I think that is a very good place to start because it is really impossible to understand Hezbollah without understanding the intentions and the capabilities of the country that 

midwifed it. 

Iran has played a central role not only in establishing Hezbollah 

but in sustaining it ever since. Hezbollah is, and continues to be, 

made in Iran, essentially, and its future remains intimately tied to 

that of the Iranian regime, and this becomes, I think, very important as we move forward, looking at issues like the Iranian nuclear 

crisis. 

First of all, it is important to note that Hezbollah is the first, the 

primary, and the most successful example of Iran’s effort to export 

the revolution, the central foreign policy principle that animated 
68

the Ayotollah Khomeini, and Hezbollah very much follows this line 

to this day. Hezbollah’s spiritual guide, Hassan Nasrallah has publicly pledged allegiance to Khomeini’s successor to the supreme 

leader, Ali Khamenei, and he serves as his personal emissary to 

Lebanon and beyond. 

The second is financing. According to United States officials, the 

Iranian regime is the central banker of terrorism, and it spends 

hundreds of millions of dollars annually on sponsoring instability 

abroad, and a large portion of those funds go to Hezbollah, as much 

as $200 million, according to some estimates. Other estimates put 

it a little lower, at $100 million, but, still, substantial amounts. 

The third point is logistics and training. Since 1982, the Iranian 

Clerical Army, the Pasdaran, has had a significant, on-the-ground 

presence in Lebanon, interfacing with Hezbollah operatives and 

Hezbollah cadres. This foothold has significantly augmented 

Hezbollah’s indigenous know-how, know-how in terms of making 

bombs, know-how in terms of guerilla maneuvers, but also potentially its war-fighting capabilities as well. As we know, there were 

reports of Pasdaran officials, Pasdaran operatives, who were involved in the recent fighting in Lebanon. 

The fifth is the synergy between the Iranian regime and 

Hezbollah itself. We have a situation where cooperation with 

Hezbollah precipitates planning and interaction on an institutional 

level that reaches up to the highest level of the Iranian Government. 

We also have an arms connection. Iran is Hezbollah’s principal 

military supplier. It is responsible for establishing and preserving 

the organization’s military capabilities. It has provided Iran with 

thousands of short-range missiles, short-range Katyushas, and 

even indigenously made, longer-range missiles, such as the Fajr-5. 

And there are also reports that Iran has even been helping 

Hezbollah to weaponize chemical agents that it has developed into 

warheads. 

So this is the state of affairs that has been obtained for some 

time, as one of your colleagues mentioned earlier, but it is also 

poised to get substantially worse. First of all, we have a situation 

where ongoing difficulties for us and for our allies in Iraq and the 

advances that Iran has made in its nuclear program have catalyzed 

a growing wave of Shia empowerment in the region, and a rising 

tide lifts all boats, and I think we are beginning to feel this with 

regard to how Hezbollah operates and the freedom of movement 

that it feels that it has in the levant. 

The other issue is that Hezbollah is positioned to be a principal 

actor in what I clearly see as an emerging conflict with Iran over 

its nuclear program. It is useful to remember here that the principal conduit for the Iranian regime to interact with Hezbollah is 

the Pasdaran. It is also the repository of the Iranian regime’s WMD 

know-how and the keeper of its nuclear and ballistic missile arsenals. 

So all of this is to say that Hezbollah may be, and this is, again, 

a very remote possibility but still not one that can be ruled out 

completely, may be at the receiving end of an established proliferation network, should the Iranian regime choose to proliferate these 

technologies. After all, Iran’s radical new President, Mahmoud 
69

Ahmadinejad, has actually said that once we get these technologies, once we get this know-how, we will share it with any and 

all Muslim comers. So this is something, I think, to keep in mind. 

The second thing, and, I think, equally important, is that 

Hezbollah, if there is some sort of military confrontation with Iran, 

the general consensus is that Iran has a very robust, asymmetric 

response capability to activate terrorist cadres in Iraq, in the Western Hemisphere, and the only group that it has that has truly global reach in order to do that, to retaliate, is Hezbollah, which means 

that Hezbollah will be at the tip of the spear of an Iranian response, if there is one, and this is something I think that we should 

really keep in mind. 

My final point here, I think, and I will close with this, is that 

when we look at Hezbollah, there is obviously the issue of Israel 

and Hezbollah’s grievance against Israel looms very large, but the 

dictum that you mentioned at the start of your statement, ‘‘Death 

to America is not just a slogan; it is a vision, a strategy, and a policy,’’ that very much obtains today, and I think that is going to be 

something that occupies more of Hezbollah and Iran’s horizon in 

the near future. 

[The prepared statement of Mr. Berman follows:]

PREPARED STATEMENT OF MR. ILAN BERMAN, VICE PRESIDENT FOR POLICY, 

AMERICAN FOREIGN POLICY COUNCIL

HEZBOLLAH: MADE IN TEHRAN

Chairman Royce, Chairwoman Ros-Lehtinen, distinguished members of the Subcommittees: 

Thank you for your invitation to appear before you today. It is a privilege to discuss the capabilities of the Hezbollah terrorist organization, and the worldwide 

threat now posed by this group. 

It is not possible to understand Hezbollah without exploring the group’s relationship with its midwife and chief sponsor, the Islamic Republic of Iran. Today, 

Hezbollah may have carved out a unique role in regional politics, simultaneously 

styling itself as the region’s preeminent ‘‘resistance’’ organization and a legitimate 

Lebanese political party. Yet ideologically, economically and politically, its fortunes 

remain intimately tied to those of the Iranian regime. 

IDEOLOGY

Hezbollah represents the first and most successful example of Iran’s central foreign policy principle: the exportation of the Islamic Revolution. As the organization’s 

ideological platform, articulated publicly for the first time in 1985, made clear: ‘‘We 

view the Iranian regime as the vanguard and new nucleus of the leading Islamic 

State in the world. We abide by the orders of one single wise and just leadership, 

represented by ‘‘Wali Faqih’’ [rule of the jurisprudent] and personified by Khomeini.’’ 1 More than two decades later, the ideological bonds between Hezbollah and 

Tehran remain deep and durable, with Hezbollah’s spiritual guide, Hassan 

Nasrallah, publicly pledging allegiance to—and serving as a personal emissary of—

Iranian Supreme Leader Ali Khamenei.2

FINANCING

According to U.S. officials, the Iranian regime is the ‘‘central banker of terrorism,’’ 

spending hundreds of millions of dollars annually on support for radical groups and 

movements throughout the world.3 A large portion of those funds go toward sustaining and supporting its principal terrorist proxy. For years, the U.S. intelligence 

community has estimated that Iran provides some $100 million—and perhaps closer 

to $200 million—annually to Hezbollah.4 These funds go to support a broad range 

of initiatives, ranging from the organization’s dedicated television channel, AlManar, to Hezbollah’s foreign presence. 
70

TRAINING

Iran’s powerful clerical army, the Pasdaran, was responsible for the creation of 

Hezbollah in 1982, as part of Iranian assistance to Syria in the arming and training 

of the Lebanese resistance as a hedge against Israel.5 Ever since, the Iranian regime has had a significant presence ‘‘on the ground’’ in Lebanon, providing oversight 

of and assistance to Hezbollah’s day-to-day operations.6 This foothold has significantly augmented Hezbollah’s indigenous know-how, and perhaps even its 

warfighting capabilities; hundreds of Pasdaran members are believed to have been 

involved in the recent fighting against Israel.7

Hezbollah, in turn, has passed along this know-how to other terrorist actors. As 

long ago as the early 1990s, the organization is known to have provided explosives 

training to al-Qaeda, as well as to Egypt’s al-Jihad organization, as long ago as the 

early 1990s.8 Hezbollah has also become a significant ally of the Palestinian Hamas 

movement; in March 2004, with Iran’s support, the two organizations signed an unprecedented strategic accord expanding tactical cooperation and coordination.9

LOGISTICS

As part of its cooperation with Hezbollah, the Islamic Republic of Iran remains 

intimately involved in the planning and execution of the organization’s terror activities. The principal conduit for these contacts is believed to be Imad Mughniyeh, the 

shadowy head of Hezbollah’s ‘‘special operations.’’ Mughniyeh is said to be an agent 

of Iran’s Ministry of Intelligence and Security (MOIS), carrying out his operations 

with MOIS backing and support.10

This interaction is ongoing. As recently as January 2006, Mughniyeh is believed 

to have traveled with Iranian President Mahmoud Ahmadinejad to Damascus, 

Syria—and to have facilitated a one-day meeting there between Ahmadinejad and 

top leaders of Hezbollah, the Palestinian Islamic Jihad and the Popular Front for 

the Liberation of Palestine-General Command.11 It is also institutional in nature, 

and sustained at the highest levels of the regime. At one time, current Iranian Defense Minister Mostafa Najar directed the Pasdaran’s elite Qods Force and oversaw 

the Islamic Republic’s contacts with Hezbollah.12

WEAPONRY

Iran is Hezbollah’s principal military supplier, responsible for establishing and 

preserving the organization’s substantial strategic capabilities. Iran, in cooperation 

with Syria, has delivered thousands of Katyusha artillery rockets, as well as hundreds of Iranian-made Fajr-5 short-range missiles, to the terrorist group over the 

past several years13—weapons that were instrumental in Hezbollah’s robust military showing against Israel during hostilities in the summer of 2006. Tehran has 

also aided and abetted Hezbollah’s efforts to acquire weapons of mass destruction, 

providing oversight and assistance to Hezbollah’s efforts to arm its arsenal of shortrange missiles with chemical warheads.14

SECURITY GUARANTEES

Iran has even gone so far as to place Hezbollah under its direct protection. In 

early 2004, Iran’s then-Defense Minister, Ali Shamkhani, signed a ‘‘memorandum 

of understanding’’ with Syria codifying Iran’s commitment to defend the Ba’athist 

state in the event of an Israeli or American offensive. Shamkhani subsequently 

made clear to Hezbollah’s top leadership that these guarantees also extend to the 

terrorist group’s stronghold, Lebanon.15 (Notably, however, Iran has not acted upon 

this pledge, despite serious questions about Hezbollah’s survivability during the 

opening phases of the most recent Lebanon war). 

HEZBOLLAH ASCENDANT

Four years ago, no less senior an official than then-Deputy Secretary of State 

Richard Armitage dubbed Hezbollah the premier terrorist threat to international 

peace and security. ‘‘Hezbollah may be the ‘A team’ of terrorists,’’ Armitage told a 

Washington conference at the time. ‘‘Maybe al-Qaeda is actually the ‘B team.’ ’’ 16

Armitage’s assessment reflects a long-standing consensus in the U.S. intelligence 

community: Hezbollah is a terrorist group with truly global reach, and extensive 

asymmetric capabilities, thanks in large part to its strategic partnership with 

Tehran. 

That estimate is even more accurate today. The War on Terror so far has done 

nothing to diminish Hezbollah’s international stature. To the contrary, over the past 

five years Iran has deepened its assistance to the Shi’ite militia, enabling the group 

to commence a landmark strategic expansion. This has included: 
71

GREATER GLOBAL PRESENCE

Hezbollah has significantly widened its international presence in recent years. 

In the West Bank and Gaza Strip, Hezbollah has begun a systematic takeover of 

Palestinian terrorist groups, co-opting secular nationalist terrorist groups and creating an elaborate smuggling network designed to arm its growing cadres.17 According to the estimates of Israel’s Shin Bet internal security service, the Lebanese Shi 

’ite militia directed over 50 separate Palestinian terror cells in 2004—a seven-fold 

increase since 2002.18 And, just weeks after the end of its month—long war with 

Israel, Hezbollah appears to have launched a new, more subtle terrorist campaign. 

According to Yuval Diskin, the head of Israel’s Shin Bet internal security service, 

the radical Shi’ite militia has stepped up its efforts to train and arm militants in 

the Palestinian Authority-controlled Gaza Strip. Diskin told a closed door session of 

the Knesset’s foreign affairs and defense committee in late August that Hezbollah’s 

efforts are assisting a massive arms build-up by militants in the Palestinian Territories.19

With Iran’s blessing, Hezbollah has also established an extensive presence in Iraq, 

with offices in such urban centers as Nasariah, Basra, and Safwan, and has begun 

substantial recruitment efforts.20 This infiltration has been so successful that the 

Lebanese Shi’ite militia is said to have assumed police duties in some Iraqi cities.21

Likewise, while Hezbollah has been active in Europe since the mid-1980s, the size 

and pace of the organization’s activity on the continent appear to be increasing. According to counterterrorism expert Matthew Levitt, Europe serves as a ‘‘launching 

pad’’ for Hezbollah; a base from which to initiate operations against Israel and to 

conduct surveillance of Western targets.22 Germany has emerged as a country of 

particular focus in this regard. In the summer of 2002, Germany’s Federal Office 

for the Protection of the Constitution went public with news that the organization 

was actively seeking real estate in Berlin to establish a headquarters and a ‘‘training centre’’ for its supporters in the country, then estimated at about 800.23 Today, 

that number has expanded considerably; according to German sources, Hezbollah 

now controls as many as five Islamic centers, financed by Iranian funds funneled 

through the Islamic Republic’s embassy in Germany, in the North Rhine-Westphalia 

region alone, as well as a nationwide network of as many as 1,000 operatives.24

STRONGER TERRORIST TIES

Simultaneously, Hezbollah has deepened its alliances with other terrorist organizations considerably. This collaboration has included assisting elements of al-Qaeda 

to put down roots in Lebanon, helping Hamas in the development of an indigenous 

missile capability, and coordinating anti-Israeli and anti-American activities with an 

assortment of extremist groups.25

GREATER PUBLIC OUTREACH

Although today’s international terrorist organizations have become increasingly 

media- and Internet-savvy, it was Hezbollah that originally pioneered the field of 

terrorist public outreach. Since its founding in 1991 with seed money from Iran, 

Hezbollah’s dedicated television station, Al-Manar, has become a media powerhouse, 

broadcasting around the clock via satellite to an estimated 10 to 15 million viewers 

daily throughout the world.26 And, while European nations have undertaken a 

major effort to silence Al-Manar in recent months, the station has proven resilient. 

Al-Manar still claims to have the ability to reach a potential 200 million viewers 

worldwide,27 providing Hezbollah with a global platform from which to spread its 

radical message. 

FUTURE ROLE

Back in the year 2000, Israel’s withdrawal from its long-established security zone 

in southern Lebanon created a political vacuum in a 350-square mile area on its 

northern border. Hezbollah was positioned to quickly fill this void, in the process 

becoming the area’s dominant political and strategic force and leading many to conclude that the organization would soon give up its arms and turn its attention to 

development and civil society. 

As the recent month-long Lebanon war has shown, however, Hezbollah’s new political role has done little to soften the organization’s radicalism. Today, the organization boasts virtual autonomy in what some have termed ‘‘Hizballahland’’ 28 and 

occupies no fewer than fourteen of the Lebanese parliament’s 128 seats. Yet, while 

its day-to-day activities may focus on the banalities of civic rule and confronting its 

immediate enemy, Israel, Hezbollah—like its progenitor, Iran—remains ideologically 
72

committed to Khomeini’s extremist vision of a Shi’ite-dominated caliphate in the region, and of confrontation with the West. 

Indeed, Hezbollah is poised to take on even greater regional significance in the 

near future. Ongoing U.S. difficulties in Iraq, coupled with the nuclear advances 

made by the Iranian regime over the past several years, have catalyzed a growing 

wave of Shi’a empowerment in the region. Hezbollah has been a principal beneficiary of this trend, a fact manifested most dramatically by its kidnapping of two 

Israeli soldiers on July 12th—an incursion that touched off a month-long war between the organization and Israel. Little in Hezbollah’s calculus has changed, 

thanks in large part to the group’s military successes against Israeli forces during 

recent hostilities. As one regional expert has put it, ‘‘Hizbullah is in a unique position to confront the U.S. agenda which if successful will be, by extension, a victory 

for Syria, Iran and Hamas.’’ 29

U.S. policymakers should keep this perception in mind as they formulate regional 

policy. They would also do well to remember the dictum of Hezbollah’s spiritual 

leader, Hassan Nasrallah: ‘‘Death to America is not a slogan. Death to America is 

a policy, a strategy and a vision.’’ 30

NOTES: 

1 As cited in Center for Special Studies, Intelligence and Terrorism Information Center, ‘‘Support For Hezbollah Provided by Iran and Syria, Two Countries Sponsoring Terrorism,’’ June 

2003, http://www.intelligence.org.il/eng/bu/hizbullah/chaplc.doc. 2 Center for Special Studies, Intelligence and Terrorism Information Center, ‘‘Hezbollah: Profile of the Lebanese Shiite Terrorist Organization of Global Reach Sponsored By Iran And Supported By Syria,’’ July 2003, http://www.terrorism-info.org.il/malamlmultimedia/English/

engln/html/hezbollah.htm#B; Mehdi Khalaji, ‘‘Iran’s Shadow Government in Lebanon,’’ Washington Institute for Near East Policy Policywatch no. 1124, July 19, 2006, http://

www.washingtoninstitute.org/templateC05.php?CID=2489. 3 ‘‘Iran Called ‘Central Banker of Terror,’ ’’ Associated Press, August 28, 2006. 

4Matthew Levitt, statement before the House International Relations Committee Subcommittee on the Middle East and Central Asia and the Subcommittee on International Terrorism and Nonproliferation, February 16, 2005, http://www.washingtoninstitute.org/html/pdf/

Iran-Testimony–2–16–05.pdf. 5Magnus Ranstorp, Hizb’Allah in Lebanon: The Politics of the Western Hostage Crisis (New 

York: St. Martin’s Press, 1997), 34; Gary C. Gambill and Ziad K. Abednour, ‘‘Hezbollah: Between 

Tehran and Damascus,’’ Middle East Intelligence Bulletin 4, no. 2 (2002), http://www.meib.org/

articles/0202ll1.htm. 6During the 1980s, this presence was estimated to be as large as 2,500. Beginning in the 

early 1990s, however, this presence was scaled down substantially, to 200–300 active Pasdaran

operatives. Gambrill and Abdelnour, ‘‘Hezbollah: Between Tehran and Damascus.’’ 7 Ira Stoll, ‘‘Hundreds of Iranian Troops Fighting in Lebanon,’’ New York Sun, July 19, 2006, 

http://www.nysun.com/article/36326. 8 United States v. Ali Mohamed, no. S(7) 98 Cr. 1023 (SDNY), October 20, 2000, 28. 9 ‘‘Hamas, Hizbullah Sign Cooperation Accord,’’ Middle East Newsline, March 31, 2004, http:/

/www.menewsline.com/stories/2004/march/03l31l1.html. 10See, for example, Isabel Kirshner, ‘‘The Changing Colors of Imad Mughniyah,’’ Jerusalem 

Report, March 25, 2002, 25. 11 ‘‘Iran’s Global Network In Focus,’’ Jane’s Intelligence Review, March 17, 2006. 12 ‘‘Iran’s DM Oversaw Ties With Hezbollah,’’ Middle East Newsline, August 15, 2005 (author’s 

collection). 13 ‘‘Iran Continues to Train Hezbollah,’’ Middle East Newsline, April 7, 2002, http://

www.menewsline.com/stories/2002/april/04l07l2.html; ‘‘Iran Establishes Rocket Training Centers in Lebanon,’’ Middle East Newsline, August 8, 2002, http://www.menewsline.com/stories/

2002/august/08l08l2.html. 14 ‘‘Hizbullah Suspected of Storing CW,’’ Middle East Newsline, May 27, 2002 (author’s collection). 15 Amir Taheri, ‘‘An Axis Resurgent,’’ New York Post, February 28, 2004, http://

www.benadorassociates.com/article/2297. 16 Richard Armitage, ‘‘America’s Challenges in a Changed World,’’ remarks to the United 

States Institute of Peace, Washington, DC, September 5, 2002, http://www.state.gov/s/d/rm/2002/

13308.htm. 17 Amit Cohen, ‘‘The Hezbollah Within Us,’’ Ma’ariv (Tel Aviv), March 5, 2004, http://

www.maarivintl.com/dev/index.cfm?fuseaction=printArticle&articleID=4106. 18 Amos Harel, ‘‘Hezbollah’s Terror Factory in the PA,’’ Ha’aretz (Tel Aviv), January 11, 2005, 

http://www.haaretz.com/hasen/spages/525429.html. 19Michael Hirst and Clancy Chassey, ‘‘’Hezbollah Is Arming Gaza For A New War On Israel,’ 

Says Israel’s Spy Chief,’’ Daily Telegraph (London), September 3, 2006, http://

www.telegraph.co.uk/news/main.jhtml?xml=/news/2006/09/03/wmid03.xml. 20See, for example, Lou Marano, ‘‘Iraqi: Hamas, Hezbollah operating in Iraq,’’ United Press 

International, January 15, 2004; See also Sharon Behn, ‘‘Hezbollah, Hamas Office Reported in 

Iraq,’’ Washington Times, March 31, 2004, A19. 21See, for example, Raymond Tanter, ‘‘Iran’s Threat to Coalition Forces in Iraq,’’ Washington 

Institute for Near East Policy Policywatch no. 827, January 15, 2004, http://

www.washingtoninstitute.org/templateC05.php?CID=1705. 
73

22Matthew Levitt, testimony before the House International Relations Committee Subcommittee on Europe and Emerging Threats, April 27, 2005, http://wwwa.house.gov/internationallrelations/109/lev042705.pdf. 23 ‘‘Hezbollah Planning Berlin Headquarters,’’ Der Spiegel (Hamburg), June 24, 2002; 

‘‘Hezbollah Plans to Settle in Berlin,’’ Die Welt (Berlin), June 26, 2002. 24 Bruno Schirra, ‘‘Extremism-Tehran’s Secret FighterslThe Shiite Terror Organization 

Hizballah Also Has Adherents in Germany,’’ Welt Am Sonntag (Berlin), July 23, 2006. 25See, for example, Isabel Kirshner, ‘‘The Changing Colors of Imad Mughniyah,’’ Jerusalem 

Report, March 25, 2002, 25; Dana Priest and Douglas Farah, ‘‘Terror Alliance Has U.S. Worried,’’ Washington Post, June 30, 2002, A01; Matthew Levitt, Targeting Terror: U.S. Policy toward Middle Eastern State Sponsors and Terrorist Organizations, Post-September 11 (Washington: Washington Institute for Near East Policy, 2002), 114. 26 Avi Jorisch, ‘‘Terrorist Television,’’ National Review Online, December 22, 2004, http://

www.nationalreview.com/comment/jorisch200412220812.asp; See also Avi Jorisch, ‘‘Al-Manar: 

Hezbollah TV, 24/7,’’ Middle East Quarterly XI, no. 1 (2004), http://www.meforum.org/article/583. 27 ‘‘Israel unable to silence Al Manar TV,’’ The Peninsula (Doha), August 7, 2006,

http://www.thepeninsulaqatar.com/Displaylnews.asp?section=WorldlNews&subsection=Gulf

%2C+Middle+East+%26+Africa&month=August2006&file=WorldlNews2006080725129.xml. 28Gal Luft, ‘‘Hizballahland,’’ Commentary 116, no. 1 (2003). 29 As cited in Nicholas Blanford, ‘‘Israeli Strikes May Boost Hizbullah Base,’’ Christian Science 

Monitor, July 28, 2006, http://www.csmonitor.com/2006/0728/p06s01-wome.html. 30 As cited in Center for Special Studies, Intelligence and Terrorism Information Center, 

‘‘Hezbollah,’’ July 2003, http://www.intelligence.org.il/eng/bu/hizbullah/pb/app13.htm.

Mr. ROYCE. Thank you, Mr. Berman. 

Mr. Sherman, did you have a question? 

Mr. SHERMAN. One for the record for Mr. Hamilton. Respond in 

writing whether you think that there are any changes we could 

make in Federal law to make it easier to prosecute and easier to 

detect those who are raising money or sending money to Hezbollah. 

[The information referred to follows:]

WRITTEN RESPONSE RECEIVED FROM MR. CHRISTOPHER HAMILTON, SENIOR FELLOW, 

COUNTERTERRORISM STUDIES, THE WASHINGTON INSTITUTE FOR NEAR EAST POLICY TO QUESTION ASKED DURING THE HEARING BY THE HONORABLE BRAD SHERMAN

This is a difficult question because it relates to how we go about balancing national security and civil rights. Generally, I do not think there is any immediate solution in re-writing our laws, despite their apparent weakness in prosecuting those 

providing material support to terror organizations. Stated differently, further 

strengthening of material support laws would encroach on our civil rights while also 

exacerbating the problem of integrating the Muslim community into the mainstream 

of American life. While it has proven very difficult to get convictions in this area, 

we have had some notable successes. The problem lies in the fact that these violations are very difficult and complex to prove to a jury. Ultimately, in my opinion, 

what we gain in stopping material support would outweighed by losses in freedom, 

particularly within the Muslim community. 

Instead, I recommend that we 1) improve our ability to investigate and prosecute 

the laws already on the books by developing new prosecutive strategies and 2) attempt to prosecute using other laws, most notably income tax laws for non-profit 

organizations. Both of these tactics are currently being developed and used with significant successes.

Mr. SHERMAN. I would like to ask Mr. Berman, how a nuclear 

Iran would empower Hezbollah. You have indicated one way, and 

that is, of course, they could go all out and actually smuggle a nuclear weapon into Israel or use their cells here in the United States 

to smuggle one into the United States. Short of the doomsday of 

actually exploding a nuclear weapon, how else would Iran’s having 

a nuclear weapon allow them to be bolder in sponsoring terrorism 

and allow Hezbollah to be bolder in carrying it out? 

Mr. BERMAN. Well, thank you very much. I think that is an excellent question. My answer, if I may, is a little bit opaque, but I 

would focus on a couple of points. 
74

The first is that the Iranian regime has clearly staked a claim 

to nuclear possession as an element of regime stability, and this is 

both internal and external. 

Mr. SHERMAN. When you say ‘‘internal,’’ you mean they could use 

it against their own people——

Mr. BERMAN. No, no, no. Certainly, not, but possessing a nuclear 

capability allows the Iranian regime to repress its people more 

widely without fear of retaliation from the international community. 

On the external front is where Hezbollah comes in. Hezbollah is 

obviously Iran’s principal terrorist proxy. There is no doubt as to 

that, and we have heard that multiple times in this hearing, but 

Hezbollah’s level of activity obviously is determined, at least in 

part, by what Iran tells it it can do. 

A great example that I experienced during the recent conflict in 

southern Lebanon was a conversation that I had with a colleague 

who used to serve at a very senior level of the Israeli Government, 

and he said that the type of intelligence that he was seeing subjected that Hezbollah was not mustering all of its capabilities, that 

the rockets it was firing were serious, and they were deadly, but 

they were not armed with chemical agents. 

I would say this: They have not demonstrated the full breadth 

of their arsenal, and the closer Iran comes to crossing the nuclear 

threshold, I think, at least politically, the more there will be the 

impetus for Hezbollah to act freer. 

Mr. ROYCE. Thank you, Mr. Berman. 

Mr. Hamilton, I was going to ask you a question. You commented, in reference to Hezbollah and the United States, you said, 

‘‘You often see in these groups the people who deal in finances also 

have military backgrounds.’’ Now, that was the case with Kourani 

as well. ‘‘The fact is,’’ you say, ‘‘they have the ability to attack in 

the United States.’’

I wondered if you could expand on that observation, especially in 

light of the fact that the ACLU now has, in terms of surveillance, 

taken a case to a judge, an activist judge, and has, temporarily, at 

least, called into question the ability of our Federal Bureau of Investigation and our Central Intelligence Agency to monitor phone 

calls from outside the United States from Beirut into Hezbollah 

cells or, for that matter, get into al-Qaeda cells and what that portends in terms of——

Mr. HAMILTON. However we resolve that issue, we need that information. There is absolutely no doubt about that. 

The other issue regarding the military capability of these organizations; there is a long history of other organizations wherein, if 

they are involved with any kind of fundraising, running any kind 

of charity, that they are perfectly capable of doing an attack, 

maybe not with the same skill as others, but if they were going to 

do it, they would set up the situation, and other people would come 

into the country to actually execute the attack. 

Mr. ROYCE. When I was in Israel, Prime Minister Olmert told me 

that, in his view, their ability to have surveillance without their capability being understood, or the West, in general, Europe and the 

United States, that, unfortunately, due to the New York Times releasing this information, there is now more understanding by the 
75

terrorists of our capability, of how we listened into those phone 

conversations, and that has really hurt Western intelligence. 

Mr. Hamilton, based on your background at the FBI, do you concur with that, or how do you see that? 

Mr. HAMILTON. We have a long history of that, beginning with 

the trial of the World Trade Center bombers, giving up our technology and our capabilities. That said, the bad guys always know 

that, and they always continue to make the same mistakes. 

Mr. ROYCE. Okay. We will go now to Mr. Tancredo for his question. 

Mr. TANCREDO. Just a very quick one to Mr. Berman, please. I 

do not understand Russia’s long-term interests here. I do not understand how they can continue to play footsie with Iran and with 

Hezbollah and not recognize the threat that both of those—that entity, I guess, poses to them in the long run. I just do not get it. 

Mr. BERMAN. I think that is an excellent question. Let me content myself with spending a few seconds to talk about what the 

Russian-Iranian relationship is. 

When it was founded in the early 1990s, the Russian-Iranian relationship was animated essentially by three things. The first was 

money. The Russian defense industry had suffered substantially 

from the collapse of the Soviet Union. They needed client states to 

sustain it, and what you had was Iran coming off of a ruinous war, 

8-year war, with Iraq that needed to build up its military capability. 

So there was a very natural symbiosis there, and that continues 

in very many ways to day. It has also expanded to include today 

the atomic industry. Iran, if it successfully nuclearizes, becomes a 

showpiece for the Russians to tell other countries that it is trading 

with, look, come see Iran. Come see what we have done for Iran. 

We can do the same for you. So this is something that I think we 

need to keep in mind. 

The second issue is Muslim empowerment, and the Russians 

have been, and continue to be, very concerned about Iran sponsoring the type of radicalism that it sponsored in Lebanon with 

Hezbollah in the post-Soviet space. 

And the third is, in many corners of the Russian policy-making 

elite, there is still the idea that sticking a finger in the eye of the 

United States is a very good time. You put those together, and you 

stir, and it makes for a very heady cocktail, and I think it goes a 

long way toward explaining why the Russians have been intransigent up until now. 

Mr. ROYCE. Thank you, Mr. Tancredo. You would think that the 

attack on the Beslan school would give Russia pause. 

Thank you. I thank our panelists for traveling here, especially 

you, Mr. Azani, for traveling all the way to the United States. We 

are going to talk a little later. We are going to have some additional questions that we are going to submit to you in writing, if 

you do not mind, for your response. But we very much appreciate 

your testimony before the Committee, and we stand adjourned. 

[Whereupon, at 12:37 p.m., the Subcommittees were adjourned.] 

(77)

A P P E N D I X 

MATERIAL SUBMITTED FOR THE HEARING RECORD

PREPARED STATEMENT OF THE HONORABLE DENNIS A. CARDOZA, A REPRESENTATIVE

IN CONGRESS FROM THE STATE OF CALIFORNIA

I want to thank the distinguished Chairs and Ranking Members for holding this 

important joint subcommittee hearing on Hezbollah’s global reach. 

I believe Hezbollah, an organization on the State Department’s list of terrorist organizations, is fully committed to one objective—the destruction of the state of 

Israel and the United States. 

On July 12, Hezbollah committed an unprovoked act of aggression against Israel 

by killing eight soldiers and kidnapping two others. In response to this heinous act, 

I joined with my colleagues to support a resolution reaffirming Israel’s rights to defend itself. I believe it was absolutely the right action, because Hezbollah and its 

large cache of arms is a direct threat to Israel and to the United States. 

Hezbollah is a threat not only to Israel and the U.S, but also to all who strive 

for an enduring peace in the Middle East. 

At the same time, we must realize that the hatred fanned by Hezbollah and other 

militant groups is driving deeper and deeper into the fabric of the Middle East, 

which makes any lasting and sustained peace effort very difficult to achieve. 

While I strongly support Israel’s right to defend itself, I do not believe that military action alone can destroy Hezbollah. In fact, efforts to defeat Hezbollah and 

other terrorist groups have deepened hatred of Israel and the United States 

throughout the Middle East. So let me say plainly—I do not believe the war against 

Hezbollah can be solely won on the battlefield. 

To achieve our goal of a broad strategic shift of conditions in the Middle East, 

I believe the U.S. must use our leverage to support a strong and democratic Lebanon, one backed by the international community. Only a strong Lebanon, backed 

by a strong Lebanese Army can destroy Hezbollah and help weaken popular support 

for such militias and terrorist organizations. 

I believe the Bush Administration must become more engaged in the Middle East. 

Only U.S. leadership can build consensus among our regional and international 

partners. As one step toward that goal, I believe the Bush Administration must 

push our European allies to add Hezbollah to their list of terrorist organizations. 

And so, as we begin this hearing today, I look forward to hearing from our panelists—not only on Hezbollah’s reach—but also what our government is doing to 

counter its growing influence in the Middle East. 

Thank you, Mr. Chairman—I yield back the balance of my time. 

PREPARED STATEMENT OF THE HONORABLE GARY L. ACKERMAN, A REPRESENTATIVE

IN CONGRESS FROM THE STATE OF NEW YORK

I want to thank the chairs for organizing this joint hearing. Hezbollah(s emergence, not only as a Shia militia and political party, not only as an international 

terrorist organization, but as a strategic proxy for the Iranian theocracy. Hezbollah 

is surely worth the attention of Congress. 

The Hezbollah threat, however, is not new. Hezbollah has been designated as a 

terrorist organization by the State Department since 1995 and has been on the list 

of Specially Designated Global Terrorist Organizations since 2001. More Americans 

have died at the hands of Hezbollah than any terrorist group other than al-Qaeda. 

The August war, which resulted in hundreds of innocent lives lost, and billions of 

dollars of destruction, was the just the latest atrocity for which Hezbollah bears responsibility. 
78

Reciting Hezbollah(s barbaric and bloody history, denouncing its philosophy of hatred and violence, and detailing its subservience to Iran and subversion of Lebanon(s sovereignty, though appreciable for the satisfaction of condemning the truly 

vile, is not what we are here for today. 

Our problem is not insufficiency of rhetoric or even, atypically, of understanding. 

Neither Hezbollah(s capabilities, nor its wickedness, are in dispute or doubt. 

Our problem is, again and again and again, one of strategy; of developing a plan 

for applying available means to achieve desired ends. So, we may ask, what resources should the United States have at its disposal to address the challenge posed 

by Hezbollah? 

Ideally, the United States should have strong alliance relationships built on a 

shared vision for achieving international security. We should have a singular international prestige built upon our position as not only the richest and strongest nation, but also as the leading advocate for international institutions and norms of behavior. We should have the public support of the most important Arab states built 

upon a shared appreciation of the Hezbollah threat to regional peace and stability. 

Five years after 9/11, we should have broad international consensus on how to define and deal with terrorism in general. We should be militarily unencumbered, or 

at least, be still able to generate robust and capable forces for any prospective conflict. And, of course, we should have confidence in the accuracy and completeness 

of our intelligence. 

As anyone who has read a newspaper in the past year knows well, we have none 

of these things. Not one of them. 

Our reputation is in tatters. Right now, Arab leaders would rather have a photoop with a child-molester than with the American president. Instead of building a 

common front against madmen who demand the entire Middle East be stuffed back 

into a straightjacket of religious dogmatism, we have, by virtue of our own faithbased foreign policy, set the entire region against us. 

In the American version we declare our most fervent hopes and prayers to be facts 

and then we wait for them to come true. Thus, we have the self-executing Roadmap 

and the endorsement of Palestinian elections which included Hamas. Thus we have 

our failure to plan for Iraqi reconstruction, or to consider the implications of dissolving the Iraqi army, or of firing all the members of the Baath party, or of trying 

to occupy a country the size of California with too few troops. Thus, we have the 

necessity of subcontracting to the EU–3 the question of Iran(s nuclear weapons program, and to China, North Korea(s nuclear program. 

Thus too with Hezbollah, we find our high hopes for Security Council Resolution 

1701 already foundering, with UNIFIL commanders proudly declaring their intention to do nothing that would frustrate Iran, annoy Syria, or discomfort Hezbollah. 

Should they encounter weapons in proscribed areas, or arms being smuggled, what 

will they do? They will consult with the government of Lebanon. Who sits in the 

government of Lebanon? Hezbollah. We(d better start praying a little harder. 

No President gets to operate in a perfect world, and as our Secretary of Defensiveness has declared, you go to war with the army you have, not the army you want. 

But clearly, by virtue of the choices we have made and the priorities we have chosen, we are much worse off now than we were five years ago. We have less acceptability, less flexibility, less capacity, less capability, and most of all, less credibility. 

In light of these unfortunate conditions, none of which were inevitable, I(m looking 

forward to hearing from our witnesses what options remain available to us for dealing with the threat from Hezbollah.

Æ