O 221607Z DEC 08
FM AMEMBASSY TEL AVIV
TO SECSTATE WASHDC IMMEDIATE 9718
INFO NCTC WASHINGTON DC PRIORITY

UNCLAS TEL AVIV 002865 
 
 
STATE FOR S/CT (R.SHORE) 
NCTC 
 
E.O. 12958: N/A 
TAGS: PTER ASEC IS
SUBJECT: ISRAEL: 2008 COUNTRY REPORTS ON TERRORISM 
 
REF: A. STATE 124815 
     ¶B. STATE 120019 
 
¶1.  The following is Post's submission for the 2008 Country 
Report on Terrorism for Israel.  Embassy Tel Aviv's point of 
contact for this report is: Jason Grubb, Political-Military 
Officer, Tel: 972-3-519-7460; e-mail: GrubbJB@State.gov. 
 
¶2. Begin Text: 
 
Israel 
 
Twenty-four Israeli civilians were killed in 10 separate 
terrorist attacks during the year, up from six attacks in 
¶2007. Israel continued to suffer from terrorist threats 
emanating from the West Bank and Gaza.  Israeli security 
sources continued to express concern that Al-Qa'ida (AQ) and 
other external Sunni extremists might have greater influence 
over or even infiltrate the West Bank and Gaza. Claims of an 
actual AQ presence in the West Bank and Gaza have not been 
substantiated. Rocket and even more accurate mortar fire 
emanating from the Gaza Strip was the Palestinian terrorist 
organizations' preferred form of attack, while incidents of 
Palestinian suicide bombing terrorism continued to decline 
relative to previous years. 
 
Israel responded to the terrorist threat as it has in recent 
years, with targeted operations directed at terrorist 
leaders, terror infrastructure, and active terror activities 
such as rocket launching groups. Israel Defense Forces (IDF) 
and Israel Security Services (ISA) incursions into the West 
Bank continued to conduct roundups and other military 
operations designed to increase pressure on Palestinian 
terrorist organizations and their supporters. The Israeli 
security services also imposed strict and widespread closures 
and curfews in Palestinian areas. Due to budgetary 
constraints, construction on an extensive security barrier in 
the West Bank and Jerusalem was sporadic in 2008. Israeli 
officials believe the fence has played an important role in 
making terrorist attacks more difficult to undertake. In some 
areas in the West Bank, such as Jenin, Israeli authorities 
eased curfews and reduced incursions to mitigate effects on 
the local population while maintaining a strong 
counterterrorism presence. 
 
Terrorist attacks that resulted in injuries and the Israeli 
responses included: 
 
-- On February 4, a Palestinian suicide bomber struck a 
shopping mall in the southern town of Dimona, killing one 
person and injuring nine others. Israeli police killed a 
second attacker before he was able to detonate his bomb belt. 
Two terrorist groups, the al-Aqsa Martyrs' Brigade (AAMB) and 
the Popular Front for the Liberation of Palestine (PFLP), 
claimed joint responsibility for the attack. 
 
-- On March 6, a Palestinian resident of East Jerusalem shot 
and killed eight students and wounded 11 others at the 
prominent Mercaz Harav Kook Yeshiva (Jewish religious school) 
in West Jerusalem. An off-duty soldier entered the yeshiva 
and killed the assailant. 
 
-- On April 25, a terrorist operating on behalf of Hamas and 
the Palestinian Islamic Jihad (PIJ) infiltrated Israel from 
the West Bank and shot to death two civilian security guards 
at an industrial park near the village of Qalansuwa. 
 
-- On July 2, a Palestinian resident of East Jerusalem killed 
three people and wounded at least 18 others with a bulldozer 
in West Jerusalem before being shot and killed by an off-duty 
soldier. The government defined the incident as a terrorist 
attack, but police were unable to determine a clear motive. 
Separately, on July 22, a second Palestinian resident of East 
Jerusalem wounded at least 16 people with a bulldozer on a 
busy West Jerusalem street before being killed by police. The 
attack was widely viewed as a copycat of the July 2 attack. 
 
-- On September 25, prominent Hebrew University professor and 
critic of Jewish settlements in the West Bank Ze'ev Sternhall 
was wounded when a pipe bomb, allegedly planted by radical 
members of the settlement movement, exploded as he opened the 
door of his home in West Jerusalem. After the attack, police 
found flyers near Sternhall's home calling for the 
establishment of a new state in the West Bank based on Jewish 
religious law. The flyers, signed by a Jewish extremist group 
called the Army of the State Liberators, also offered USD 
314,000 (1.1 million NIS) to anyone who killed a member of 
the NGO Peace Now.  The ISA continues to investigate the 
attack. 
 
-- On November 26-28, terrorists killed four Israeli citizens 
at the Chabad House in Mumbai, India. According to press 
reports, Indian commandoes killed two terrorists during the 
assault on the house. 
 
-- During the year, rocket, mortar, and sniper fire from the 
Gaza Strip killed six Israeli civilians and one Ecuadoran 
kibbutz volunteer. 
 
Throughout the year, Israel's security services were able to 
keep terrorist planners and operators off balance, reporting 
multiple foiled attempts.  On January 16, IDF, Civil 
Administration and police forces intercepted a truck 
containing 800 kg of potassium/nitrate at the Eliyahu border 
crossing south of Qalqiliya, West Bank. Potassium nitrate is 
a banned substance in Gaza and the West Bank due to its use 
in the manufacturing of explosive devices and Qassam rockets. 
 On November 4, IDF and security forces discovered a tunnel 
situated 250 meters from the Gaza security fence that they 
believed would be used for the abduction of IDF soldiers. 
Israeli forces killed several militants during an ensuring 
firefight.  On November 12, IDF forces killed four armed 
militants in Gaza attempting to place an explosive device 
near the Gaza security fence. On November 28, IDF forces 
identified another attempt by terrorists to lay an explosive 
device at the Gaza security fence near Khan Yunis.  In an 
ensuing firefight, IDF forces killed one terrorist and 
wounded four others. 
 
The smuggling of commodities, arms, explosives, and funds in 
support of terrorist groups such as Hamas through tunnels 
along the Philadelphi Route between the Gaza Strip and Egypt 
continued to prove problematic.  On January 23, Hamas 
terrorists blew up several sections of the border fence 
separating the Gaza Strip from the Egyptian town of Rafah. 
According to the Israeli Ministry of Foreign Affairs, Hamas 
utilized this opportunity to smuggle explosives, anti-tank 
and anti-aircraft weapons into the Gaza Strip. Israel 
contended that Egypt did not do enough during the past year 
to stop the smuggling of arms and explosives from the Sinai 
into Gaza through over 900 tunnels. 
 
Despite the fact that Palestinian terrorists were relatively 
unsuccessful in carrying out suicide bombings and other 
attacks within Israel, they conducted mortar attacks against 
the Israeli-manned crossings between Gaza and Israel, and 
Qassam rocket launches from Gaza that terrorized Israeli 
communities abutting Gaza. Palestinian terrorists routinely 
fired rockets and mortars at Israeli civilians from the Gaza 
Strip despite an Egyptian-negotiated truce or cease fire 
("tahdiyah") between Israel and Hamas that began on June 19. 
According to the Israeli Ministry of Foreign Affairs (MFA), 
Palestinian terrorist groups fired 1,212 rockets and 
approximately 1,290 mortars into Israel between January 1 and 
October 31, up from 896 rockets and 749 mortars in 2007. 
Rocket and mortar attacks began to escalate toward the end of 
the year; the MFA estimated that Palestinian terrorist groups 
fired 213 rockets and 126 mortars at Israel from November 4 
to December 18.  On December 17, the press reported that 
terrorist groups in Gaza fired 25 Qassam rockets at Israel. 
On December 18, Hamas leadership announced the end of the 
ceasefire, although it is unclear at this time whether 
full-scale hostilities will resume. 
 
Targeted Israeli towns included Sderot and Ashkelon, as well 
as a number of nearby agricultural collectives (kibbutzim) 
and IDF bases. Palestinian terrorist groups increasingly used 
122 mm Grad missiles, which landed in or near Ashkelon. While 
there have been no fatalities resulting from rocket and 
mortar attacks since the June 19 ceasefire, these attacks 
resulted in numerous cases of shock and property damage, and 
disrupted daily life. 
 
The Israeli security services assessed that the use of 
rockets and mortars reflected recognition by the groups 
launching them that their best chances for success are 
through asymmetrical warfare, especially in light of the 
stringent physical security measures that limit the movement 
of potential suicide bombers into Green Line Israel. The 
reliance on rockets also reflected technological advancements 
that allowed groups to manufacture the rockets cheaply, 
stockpile them, and launch them greater distances. As the 
rockets' ranges continue to increase, Israeli authorities in 
the port city of Ashdod initiated emergency response training 
in anticipation of eventual rocket attacks in their city. 
Mortars were used mainly against Israeli targets within or on 
the edge of the Gaza Strip, to include crossings, which had 
the effect of closing the crossings to the detriment of 
Gaza's residents. 
 
On February 29 to March 1, the IDF conducted Operation Warm 
Winter against terror targets in Gaza - the last large scale 
IDF action of this year. Following the November 4 tunnel 
discovery along the Gaza security fence, Israel undertook 
small-scale military operations and airstrikes against 
suspected launch teams and sites in Gaza. The Israeli Air 
Force increasingly launched airstrikes against launch teams 
in November and December following the escalation in rocket 
and mortar attacks. The Israeli government maintained the 
option to again authorize targeted operations against 
terrorist leaders and operatives. 
 
Israel's security establishment remained concerned about the 
terrorist threat posed to Israel in the north by Hizballah 
and its Iranian and Syrian backers. Israeli security 
officials said Hizballah continued to provide support to 
select Palestinian groups to augment their capacity to 
conduct attacks against Israel. Israeli politicians and 
security officials pointed to Hizballah's efforts to rebuild 
and rearm after the 2006 Second Lebanon War as evidence that 
Hizballah remained a threat to Israel. Throughout the rest of 
the year, Israeli officials claimed publicly that Hizballah 
had completely replenished its ranks, possessed even more 
short and medium-range rockets than it had before the 2006 
war, had moved arms back to southern Lebanon, and was 
providing training to Hamas operatives from Gaza. However, 
Israel's northern border remained comparatively quiet during 
the course of the year. The IDF continued a strong exercise 
schedule and military presence in the Golan Heights. 
 
The finance of terrorist entities such as Hamas and Hizballah 
that consider Israel a target is accomplished mostly through 
state-sponsors of terrorism such as Iran, and through various 
fundraising techniques drawing on charity networks in Europe, 
the United States, the Middle East, and to a lesser extent, 
elsewhere. The funds channeled to these organizations 
frequently passed through major international financial 
capitals, such as Dubai, Bahrain, Hong Kong, Zurich, London, 
or New York. Unlawful funding bound for terrorists that may 
pass through Israel's financial sector, however, is well 
monitored and often blocked. Israel has adopted strong 
measures to prevent the financing of terrorism through its 
financial sector or through the smuggling of financial 
instruments. Regulation and enforcement of its domestic 
financial industry is equivalent in scope and effect to other 
highly industrialized and developed nations. Israel's 
Counter-Terrorism Finance regime is administered as part of 
its Anti-Money Laundering program (AML/CFT). 
 
The Israeli National Police (INP) with the advice of the 
security services is charged with enforcement of 
counter-terrorism finance laws. Regulation of and 
intelligence on financial crimes is coordinated by the Israel 
Money Laundering and Terror Financing Prohibition Authority 
(IMPA) in coordination with the National Security Council. 
Israel reports its financial crime statistics to include, 
inter alia, the financing of terrorism. For 2008, the INP 
reported no indication of an overall increase in financial 
crime relative to previous years. In 2007, IMPA reported 56 
arrests and five prosecutions relating to money laundering 
and/or terrorist financing. In 2008, IMPA received 
approximately 17,152 suspicious transaction reports. During 
this period IMPA disseminated 529 intelligence reports to law 
enforcement agencies and to foreign Financial Intelligence 
Units (FIUs) in response to requests, and on its own 
initiative. In 2007, the INP seized approximately USD nine 
million in suspected criminal assets. For 2008, the IMPA 
reports that approximately USD two million (about NIS7.7 
million) was frozen or forfeited in AML/CTF-related actions. 
 
On the law enforcement front, the ISA and INP continued to 
cooperate with U.S. law enforcement agencies on cases' 
involving U.S. citizens killed in terrorist attacks. On 
October 29, the Israeli parliament (Knesset) voted to 
continue work on a biometrics bill by sending it to the 
Constitution, Law, and Justice Committee for further work. 
The bill proposes that Israel switch to "smart" 
identification methods such as fingerprints and digital 
photographs on identification cards and passports. The GOI 
released convicted Lebanese terrorist Samir Kuntar and four 
Hizballah militants on July 16 in exchange for the remains of 
two Israeli soldiers whose capture by Hizballah sparked the 
2006 Second Lebanon War. 
 
Press reports also highlighted numerous attempts to kidnap 
Israeli citizens or high-value targets of interest, including 
foreign diplomats and journalists. The Israeli 
Counter-Terrorism Bureau issued a warning in October in 
advance of the Jewish holiday season that terrorist groups 
may attempt to kidnap Israeli tourists in the Sinai. 
Terrorists held hostage and later killed four Israeli 
citizens at the Chabad House as part of the November attacks 
on Mumbai, India. 
 
End text. 
 
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CUNNINGHAM