ARAB-US RELATIONS - Nov 8 - US Concern At Saudi Action On Terror.

The US Treasury on raises concerns that Saudi Arabia is not being active enough in shutting down sources of financing for terrorist organisations. The Senate judiciary committee heard from a senior official that the Bush administration had doubts over Saudi Arabia's claims to have closed a government account that funded militant Palestinian groups, and was concerned about the overseas activities of Saudi charities and non-governmental organisations with close ties to the royal family. Strains in the US-Saudi relationship were also highlighted by the release of the State Department's annual report on global religious freedom. Saudi Arabia, for the second year running, was among eight countries cited as restricting religious freedoms. State Sec Rice, is expected to raise these issues when she visits the kingdom during a tour of the Middle East that starts later this week. Statements by both Republican and Democratic senators on the judiciary committee revealed how deep-seated misgivings in the US towards Saudi Arabia since the 9/11 attacks by Al Qaeda have been barely moderated by the kingdom's subsequent co-operation against terrorism. Daniel Glaser, deputy assistant secretary in the Treasury's office for dealing with terrorist financing, said Saudi Arabia had taken positive steps but needed to do more on counterterrorist financing. Senators grilled Glaser when he revealed US concerns over a programme broadcast on Saudi TV in August soliciting funds to assist the Palestinian intifada to be deposited in Account 98, a government account that Saudi Arabia claims it has closed. "We are looking into the existence of Account 98", Glaser said. He told senators that despite repeated assurances from the Saudi authorities, he could not confirm that the account no longer existed. Glaser said the US remained "deeply concerned" whether a Saudi ban on funding charities overseas had been implemented with respect to "so-called international NGOs". He named three big organisations with close ties to members of the royal family - the International Islamic Relief Organisation (IIRO), the World Assembly of Muslim Youth, and the Muslim World League. The IIRO has been active in helping victims of the earthquake in Kashmir. "In recent years, Saudi-US co-operation against terrorist finance has increased and achieved important successes", Glaser said. "In order for this relationship to mature, however, Saudi Arabia will have to move beyond reacting to information provided by the US and to lead the effort to identify and take action against sources of terrorist financing".