Brazil: No Evidence Of Terror Links In Border Area
*************************************************************

POSTED: 1536 GMT (2336 HKT),

December 8, 2006

Story Highlights

• U.S. had imposed sanctions on alleged Hezbollah network

•Brazil, Argentina, Paraguay say U.S. fails to prove case in border area

•U.S. freezes bank accounts of suspected terrorist fronts

RIO DE JANEIRO, Brazil (AP) -- Brazil's government has rejected U.S. sanctions against alleged terrorist fundraisers in the tri-border area of Argentina, Brazil and Paraguay, saying American officials failed to present sufficient evidence.

The Foreign Ministry announcement late Thursday indicated that the three South American governments are unwilling to place complete trust in U.S. administration assertions about the war on terror.

The Bush administration on Wednesday imposed sanctions on what it termed a major fundraising channel for Hezbollah in the tri-border area, focusing on nine people plus a shopping center in Paraguay and an electronics company, Casa Hamze, located there.

The U.S. Treasury Department barred Americans from doing business with them said any bank accounts or other financial assets belonging to the designated people and entities found in the United States must be frozen.

But Brazil's announcement said that the three countries had met in Buenos Aires this week and decided there was not "any new data or evidence that corroborates the accusation by the United States."

It also said the United States had failed to prove oft-repeated suggestions that the region itself is a hotbed of terrorist financing.

"In light of the information available, there is no sign of the occurrence in that region of activities linked to terrorism or their financing," the Foreign Ministry statement said. "That position is shared by Argentina and Paraguay."

The ministry said that "unilateral statements that arbitrarily single out the tri-border region cause undue harm to the region," but it reiterated Brazil's "international commitment ... for the prevention and combat of terrorism."

The tri-border region is considered a haven for arms traffickers, smugglers and counterfeiters and is home is thousands of Lebanese Muslims.

The department alleges that those designated have provided financial and logistical support to the Islamic militant group Hezbollah, which the United States considers a terrorist organization. The Lebanon-based Hezbollah is suspected of involvement in terrorist attacks worldwide.

It alleges that the designated people gave financial and other assistance to Assad Ahmad Barakat, whose "network in the tri-border area is a major financial artery to Hezbollah in Lebanon," said Adam Szubin, director of the Treasury Department's Office of Foreign Assets Control.

The Treasury Department alleged that Muhammad Yusif Abdallah, allegedly an owner of the Galeria Page shopping center in Paraguay, is a senior Hezbollah leader who pays a percentage of his income to Hezbollah.

It also said that Hamzi Ahmad Barakat funded Hezbollah through his electronics store, Casa Hamze.

Source:

http://edition.cnn.com/2006/WORLD/americas/12/08/centam.terror.ap/