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To: abstract who wrote (105430)9/23/2001 8:51:00 AM
From: Ibexx  Respond to of 152472
 
FBI knew terrorists were using flight schools

By Steve Fainaru and James V. Grimaldi
Washington Post Staff Writers
Sunday, September 23, 2001; Page A24

Federal authorities have been aware for years that suspected terrorists with ties to Osama bin Laden were receiving flight training at schools in the United States and abroad, according to interviews and court testimony.

Three days after the attack on the Pentagon and the World Trade Center, FBI Director Robert S. Mueller III described reports that several of the hijackers had received flight training in the United States as "news, quite obviously," adding, "If we had understood that to be the case, we would have -- perhaps one could have averted this."

A senior government official yesterday acknowledged law enforcement officials were aware that fewer than a dozen people with links to bin Laden had attended U.S. flight schools. However, the official said there was no information to indicate the flight students had been planning suicide hijacking attacks.

"We were unable to marry any information from investigations or the intelligence community that talked to their use of this expertise in the events that we saw unfold on the 11th," the official said.

Connections between terrorists and flight training include the following:

In 1996, two flight school operators said last week, FBI agents visited them to obtain information about several Arab pilots connected to a Pakistani terrorist eventually convicted of plotting to bomb U.S. airliners.

The flight schools, Coastal Aviation of New Bern, N.C., and Richmor Aviation of Schenectady, N.Y., were two of four that provided flight training to Abdul Hakim Murad in the early 1990s, according to Philippine authorities. Murad was arrested in Manila in 1995 and later convicted in New York of plotting to blow up a dozen U.S. airliners over the Pacific, then crash a suicide plane into CIA headquarters.

In 1998, FBI agents questioned officials from Airman Flight School in Norman, Okla., about a graduate later identified in court testimony as a pilot for bin Laden, according to Dale Davis, the school's director of operations.

This year, the trial of bin Laden associates for the 1998 bombings of U.S. embassies in Kenya and Tanzania yielded documents containing several references to flight schools and bin Laden pilots.

Two weeks before the Sept. 11 attack, Davis said, FBI agents returned to Norman seeking information about another Airman student, a French-Moroccan dropout who had entered the country on a visa sponsored by the flight school. The man, Zacarias Moussaoui, had been detained in Eagan, Minn., on an immigration violation after he tried to purchase time on a jet simulator -- even though he had never flown solo in a single-engine aircraft.

One government witness in the embassy-bombing trial, Essam al-Ridi, testified that he had taken classes and taught at the now-defunct Ed Boardman Aviation School in Fort Worth. Al-Ridi also said that in the mid-1990s, he purchased a used Saber-40 aircraft on bin Laden's behalf for $210,000 in Tucson. Another witness in the same bombing trial, L'Houssaine Kerchtou, testified that he was sent to a flight school in Nairobi and later served as a pilot for bin Laden.

The issue of how U.S. authorities processed early warning signs that terrorists were taking advantage of the flight school system is certain to be examined in the aftermath of the attack. Suzanne E. Spaulding, executive director of the National Commission on Terrorism, a congressionally appointed task force, said, "In hindsight, we can see how all these things [flight school connections] might be relevant and important." But, she said, "it is harder on a day-to-day basis. There is no question that technology could help sort information."

Since the attack, the FBI has extended its investigation to dozens of flight schools coast to coast, including some of the same schools it visited in the years before the attack. According to law enforcement officials and press reports, the 19 suspected terrorists received flight training from at least 10 U.S. flight schools. At least 44 people sought by the FBI for questioning received some flight instruction.

Dietrich L. Snell, who helped prosecute Murad, said that although the Pakistani terrorist attended four U.S. flight schools, it would have been difficult for the FBI to connect the schools to the kind of terrorist attack that occurred Sept. 11.

Murad, he said, had indicated that he wanted to use his flight training to become a commercial pilot until he was recruited by Ramzi Ahmed Yousef, a bin Laden operative who also plotted the 1993 World Trade Center bombing.

"I think that because Murad had been trained as a pilot it's tempting in hindsight to say that the bureau should have known," said Snell. "But I think they were missing any link that would have connected the flight schools to this kind of terrorism."

The Murad investigation showed that Murad and Yousef were planning to employ five-man teams to smuggle bombs on to 12 planes operated by United Airlines, Delta Air Lines and Northwest Airlines during a two-day period in 1995. Prosecutors for the U.S. government described the plot as "one of the most hideous crimes anyone ever conceived."

Murad confessed to authorities that part of his planned role in the terror attack was to crash a plane into CIA headquarters in Langley.

Richard Kaylor, manager of Richmor Aviation, said the FBI was first alerted to the Schenectady flight school after a Richmor business card was discovered in Murad and Yousef's Manila apartment.

Kaylor said two FBI agents came to interview him about Murad in 1996. He said he provided information about Murad and two other student pilots, both of whom lived with Murad. Kaylor said the three men had come to Schenectady after a stint at Alpha Tango Flying Services in San Antonio.

Kaylor said four FBI agents returned Friday to Richmor to question him about a Turkish student who had received his private pilot's license last year. But Kaylor said it was unclear whether the agents were aware that he had been interviewed five years earlier.

Whether officials at Alpha Tango were also interviewed in 1996 is unclear. The flight school's owner, Hamid Afzal, could not be reached for comment. After the Sept. 11 attack, Afzal contacted the FBI about names on a published list of suspects, believing some of the hijackers might also have taken instruction at Alpha Tango, according to a report in the San Antonio Express-News.

Paul Proctor, the former owner of Coastal Aviation, another school Murad told investigators he had attended, said he could not recall whether the convicted terrorist had received his commercial pilot's license from his facility. But he said he "wouldn't be surprised," because an FBI agent searched his files about the same time agents were visiting Richmor.

Proctor said that the FBI agent never disclosed the purpose of the visit, but that he asked to see the files for students of Arab descent. The agent collected names, passport information and flight training records, according to Proctor. As the agent was finishing, Proctor said, "I made a little comment about hijacking an airplane or terrorism. He said, 'Don't even say that.' That was obviously what he was looking for."

Proctor, whose company ceased operations in 1997, said he had already been suspicious about a specific group of Arab students, two of whom had arrived at the school on North Carolina's coast from New York City in a taxicab. The students already had private pilots' licenses and had come to the school to receive advanced training to fly multi-engine aircraft, Proctor said.

The day after the students completed their training and left, Proctor said, he discovered that a $12,000 instrument radio pack -- including automatic direction finder, navigation aids and transponder -- was missing from one of his single-engine Cherokee Archers. Proctor said he never reported the theft to police because he believed he had little hope of recovering the equipment.

About three years later, FBI agents visited Airman Flight School in Oklahoma to inquire about Ihab Ali Nawawi, a bin Laden associate whose name surfaced during the trial for the 1998 embassy bombings. Dale Davis, the flight school's director of operations, said Nawawi obtained his commercial pilot's license from Airman in the early 1990s, then traveled to another school in Oklahoma City to qualify for a rating to fly small business aircraft.

In testimony during the embassy bombing trial, al-Ridi, the government witness, described Nawawi as a pilot for bin Laden. Al-Ridi testified that he met Nawawi in Khartoum at a time when Nawawi had just graduated from flight school in the United States and had begun to work for bin Laden.

Correspondent Doug Struck and researcher Margaret Smith contributed to this report.

Ibexx



To: abstract who wrote (105430)9/23/2001 4:04:14 PM
From: Jon Koplik  Read Replies (1) | Respond to of 152472
 
NYT -- "Grim" investment realities (thoughts from Martin J. Whitman).

September 23, 2001

MARKET WATCH

Grim Realities, Here to Stay

By GRETCHEN MORGENSON

Investors like to look to history to divine
what might happen next in the financial
markets. But across the nation, from the
smallest stock market dabbler to the largest
institution, investors are facing an adversity
unlike any experienced before. Even stock
market veterans who survived the bear market
of 1974 say that comparisons to that painful
period are of no help.

There are investors who specialize in analyzing
industries under stress and identifying companies with the best shot at a
comeback. One of the most able and experienced of these investors is Martin J.
Whitman, manager of Third Avenue Funds, three mutual funds that invest in
companies whose stocks are cheap despite having solid balance sheets and good
earnings potential down the road. His experience may give investors some
guidance for what lies ahead.

Mr. Whitman's performance has been enviable. For the three-year period ended
Aug. 31, the average annual return in his largest fund, Third Avenue Value, was
19 percent. The fund has lost 12 percent of its value this year, but one of his
other funds, Third Avenue Real Estate, is up 6.4 percent for the year, while Third
Avenue Small Cap is down just 1.6 percent.

Where Mr. Whitman can provide value to all investors is in his perspective on the
current investment scene. He is a man who calls 'em as he sees 'em. His
prognostications are not the sugarcoated version of what may transpire — like
some of those emanating from big Wall Street firms.


His macro view is simple and dark. "I don't think we ought to be worried about
the recession," he said.

A far greater concern is what he calls permanent impairment, an accounting term
that refers to an asset that has been so damaged that it will never return to its
previous value. He argues that some industries have been permanently impaired
by the events of Sept. 11.


"We will never again go back to the way things were in the airline industry,
hotels, in small property and casualty reinsurers, maybe computer box
manufacturers," he said, though the computer problem predated the terrorist
attacks. "And things may stay bad for an indefinite period."

But that is not to say that Mr. Whitman is all doom and gloom. In fact, he says
the stock market holds exceedingly compelling bargains now, companies that
have solid financial positions and good potential for earnings rebounds. Yet these
companies are selling at price-to-earnings ratios that are well below 10 times the
profits that Mr. Whitman expects from them in a recovery. Some are trading at
discounts to their readily ascertainable net asset values.


Here are some companies Mr. Whitman has been buying in recent days:

• The Brascan Corporation (news/quote) has operations in real estate and base
metals, electric power generation and financial services. Its stock, which closed
at $15.82 on Friday, is trading at around 11 times future earnings.

• Forest City Enterprises (news/quote) is a builder and a manager of commercial
and residential real estate, including shopping centers, industrial parks and
apartment houses. Its shares are at $50.70, up about 25 percent this year.

• Paccar Inc. makes Peterbilt and Kenworth trucks and industrial parts, and has a
"big, big balance sheet," Mr. Whitman said. Its stock fetched $44.86 last week
and has a dividend yield of 2.7 percent.

• Trinity Industries (news/quote) is a highly efficient manufacturer of
transportation, construction and industrial products like freight rail cars, highway
guardrails and barges, Mr. Whitman said. The stock, now at $21, has a dividend
yield of 3.4 percent.


[Note from Jon -- these two companies sure seem like potential candidates for being a place to park money that used to be in T-bills or 2-year T-notes ...]

Make no mistake: these are not stocks that will pop in the short term. Mr.
Whitman is a patient investor in the most traditional sense of the word. His is an
approach that was ridiculed in the stock market mania that now seems so very
long ago and far away. But with the short term looking so grim, investing for the
long term is the only tack for investors to take now.

Copyright 2001 The New York Times Company