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American Morning

Saudi Money Trail

Aired November 25, 2002 - 08:33   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


PAULA ZAHN, CNN ANCHOR: In Washington, some lawmakers urging the White House to rethink its alliance with Saudi Arabia. This follows a report in "Newsweek" that money from a Saudi princess might have made its way indirectly to two 9/11 hijackers. The revelation raises troubling questions about Saudi Arabia's role in the war on terrorism.
Let's check in with our Justice correspondent Kelli Arena, who joins us now from Washington this morning.

Good morning, Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Good morning, Paula.

ZAHN: How long have officials known about these two men who took money from the Saudi princess?

ARENA: Well, sources tell us that investigators have been aware of this connection for more than a year, and the FBI investigation, as you know, Paula, is still under way.

Sources say that the reason we are hearing about this now is that there was a draft report from Congress that was recently submitted to the Justice Department, which includes harsh criticism that the FBI did not properly follow through to get more information.

Now the FBI has confirmed that the two Saudi students who received money from the wife of the Saudi ambassador to the U.S. were charged with visa fraud, but the FBI would not comment further, citing a pending investigation.

Now, the two men, as you know, were ultimately released and, as you've been saying all morning, there is no concrete evidence that the Saudi government knowingly funded any terrorist activity. Sources have described Saudi cooperation on the terror front as inconsistent, at best. They say that anti-U.S. sentiment has been growing, not only among the citizenry, but within the government as well. Very tricky, though, Paula, as you know, on considering the diplomatic relationship, the fact that the White House is possibly preparing to go to war against Iraq.

Saudi ties, now more than ever, very, very important.

ZAHN: Meanwhile, you hear this growing chorus of criticism, not only coming from Democrats, but members of the president's own party. Joseph Lieberman, the senator from Connecticut, coming out over the weekend, saying that the FBI was not aggressive enough in pursuing Saudi leads, and then you have Chuck Schumer coming out over the weekend, saying it's time for the Saudis to fess up. What kind of pressure do you sense will be brought to bear on the Saudis as this FBI investigation continues?

ARENA: Officials that we've been able to contact over the weekend, Paula, have suggested that there are two different worlds at play here. You have your politics, your political world, and what can be said and what will be said by members of Congress.

And then your very different diplomatic world, and what can and will be said by the administration and the White House.

It is, I'm told, clearly understood that those two are very separate, that the relationship, as I said earlier, with the Saudis, is very important, especially now with the situation in Iraq; obviously, the economic relationship in terms of oil. So there is a lot of play. There always has been a lot of play, a complicated dance that the U.S. has to continually do with Saudi Arabia.

What you're hearing from Congress won't necessarily make a difference on a larger scale.

ZAHN: Kelli Arena, thank you very much for the update.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired November 25, 2002 - 08:33   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: In Washington, some lawmakers urging the White House to rethink its alliance with Saudi Arabia. This follows a report in "Newsweek" that money from a Saudi princess might have made its way indirectly to two 9/11 hijackers. The revelation raises troubling questions about Saudi Arabia's role in the war on terrorism.
Let's check in with our Justice correspondent Kelli Arena, who joins us now from Washington this morning.

Good morning, Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Good morning, Paula.

ZAHN: How long have officials known about these two men who took money from the Saudi princess?

ARENA: Well, sources tell us that investigators have been aware of this connection for more than a year, and the FBI investigation, as you know, Paula, is still under way.

Sources say that the reason we are hearing about this now is that there was a draft report from Congress that was recently submitted to the Justice Department, which includes harsh criticism that the FBI did not properly follow through to get more information.

Now the FBI has confirmed that the two Saudi students who received money from the wife of the Saudi ambassador to the U.S. were charged with visa fraud, but the FBI would not comment further, citing a pending investigation.

Now, the two men, as you know, were ultimately released and, as you've been saying all morning, there is no concrete evidence that the Saudi government knowingly funded any terrorist activity. Sources have described Saudi cooperation on the terror front as inconsistent, at best. They say that anti-U.S. sentiment has been growing, not only among the citizenry, but within the government as well. Very tricky, though, Paula, as you know, on considering the diplomatic relationship, the fact that the White House is possibly preparing to go to war against Iraq.

Saudi ties, now more than ever, very, very important.

ZAHN: Meanwhile, you hear this growing chorus of criticism, not only coming from Democrats, but members of the president's own party. Joseph Lieberman, the senator from Connecticut, coming out over the weekend, saying that the FBI was not aggressive enough in pursuing Saudi leads, and then you have Chuck Schumer coming out over the weekend, saying it's time for the Saudis to fess up. What kind of pressure do you sense will be brought to bear on the Saudis as this FBI investigation continues?

ARENA: Officials that we've been able to contact over the weekend, Paula, have suggested that there are two different worlds at play here. You have your politics, your political world, and what can be said and what will be said by members of Congress.

And then your very different diplomatic world, and what can and will be said by the administration and the White House.

It is, I'm told, clearly understood that those two are very separate, that the relationship, as I said earlier, with the Saudis, is very important, especially now with the situation in Iraq; obviously, the economic relationship in terms of oil. So there is a lot of play. There always has been a lot of play, a complicated dance that the U.S. has to continually do with Saudi Arabia.

What you're hearing from Congress won't necessarily make a difference on a larger scale.

ZAHN: Kelli Arena, thank you very much for the update.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com