Financial Times; Aug 19, 2002
Saudis reconsider US links after terrorism lawsuit
By Roula Khalaf in London
The trillion-dollar lawsuit filed against Saudis by relatives of September 11 terrorism victims has intensified the debate in the kingdom over the need for a re-evaluation of ties with the US.
Islamic charities and banks named in last Thursday's lawsuit vehemently denied at the weekend any involvement in terrorism financing, and a leading Saudi newspaper called for a reconsideration of the strategic alliance with Washington.
"In the context of a debate we must question those who think that the US is our strategic option and that there is no alternative to it," said the daily al-Riyadh. "This could be putting us in a narrow space that is not justified by objective considerations or perhaps this options carries too high a price."
The editorial is significant because the paper closely reflects government views. Similar calls have been expressed in recent days in other publications, including the front page of yesterday's Saudi-owned pan-Arab daily al-Hayat.
Heads of Islamic charities charged in the lawsuit filed in Washington lashed out at what they said was a "campaign to discredit Islamic charitable work", with some claiming that the move marked another US attempt to press Saudi Arabia into backing a war against Iraq. The accused also included three prominent members of the Saudi royal family.
Analysts warned that the lawsuit could provoke Saudis to withdraw some of their US investments, which are believed to reach more than $600bn (#380bn). "The lawsuit is very disturbing - Saudis have huge assets in the US and this could lead them to take their money out," said Jamal Khashoggi, deputy editor of Arab News, the English- language daily.
The lawsuit has exacerbated tensions between the two allies and revived accusations of terrorist financing that US and Saudi officials have tried to tackle through increased scrutiny of financial transactions and the conduct of Saudi charities.
The strains that emerged after September 11, when the US discovered that 15 of the 19 hijackers were Saudi nationals, were highlighted again earlier this month in a briefing to the Pentagon that described the kingdom as an evil enemy of the US.
But differences are currently most apparent over Iraq. Although Saudis are, in theory, in favour of a change of regime in Baghdad, they oppose a US military campaign to accomplish this and have openly said bases in Saudi Arabia should not be used for military strikes. This position frustrates Washington, which has been expanding a military base in Qatar for use as a possible alternative.
Although the official position of both governments is that the alliance remains strong, questions are now being raised in both Washington and Riyadh about future ties, on both official and business levels.