Hezbollah builds a Western base

A mother lode of money
Operating out of the Tri-border, Hezbollah is accused of killing more than 100 people in attacks in nearby Buenos Aires, Argentina, during the early 1990s in operations personally masterminded by Hezbollah’s military commander, Imad Mugniyah.

Mugniyah is on the most-wanted terrorist lists of both the FBI and the European Union, and he is believed to work frequently out of Ciudad del Este.

For President Bush and the U.S.-led “war on terror,” the flourishing of Hezbollah in the Western Hemisphere demonstrates the worrying worldwide reach of Islamist radicalism. In the Tri-border, Hezbollah and other radical anti-U.S. groups have found a lucrative base from which to finance many of their operations.

Smuggling has long been the lifeblood of the Tri-border, accounting for $2 billion to $3 billion in the region, according to congressional officials. Several U.S. agencies said that Arab merchants were involved in smuggling cigarettes and livestock to avoid taxes, as well as cocaine and marijuana through the border with Brazil on their way to Europe. Some of the proceeds are sent to Hezbollah, they said.

Many Arabs in the Tri-border openly acknowledge that they send money to Hezbollah to help their families, and the man in charge of the local mosque in Ciudad del Este, who asked not to be identified by name, declared that Shiite Muslim mosques had “an obligation to finance it.”

But the U.S. government maintains that the money ends up stained with blood when it goes through Hezbollah, which is blamed for the bombings of the U.S. Embassy and the Marine barracks in Beirut, Lebanon, in the 1980s, as well as the kidnappings of Americans, two of whom were tortured and killed.

Patrick M. O’Brien, the assistant secretary of the Treasury in charge of fighting terrorist financing, acknowledged flatly that “we are worried.”

“Hezbollah has penetrated the area, and part of that smuggling money is used to finance terrorist attacks,” he said.

In Paraguay, looking the other way
The biggest obstacle in the U.S. campaign to counter Hezbollah close to home is Paraguay, whose “judicial system remains severely hampered by a lack of strong anti-money laundering and counter-terrorism legislation,” the State Department said in a “Patterns of Global Terrorism” report.

Since 2004, a draft bill to strengthen money laundering laws has been stalled in the Paraguayan legislature, and the government of President Nicanor Duarte has introduced no draft legislation of its own.

Hampering reform efforts is an endemic reluctance in Paraguay to acknowledge the problem.

Interior Minister Rogelio Benitez Vargas, who supervises the national police, claimed that Hezbollah-linked smuggling was a relic of the 1980s. Today, he said, the Triple Frontier is a safe and regulated “commercial paradise.”

But authorities from the U.S. State and Treasury departments to Interpol to the front-line Paraguayan police agencies all paint a different picture. Eduardo Arce, secretary of the Paraguayan Union of Journalists, said the government was widely considered to be under the control of drug traffickers and smugglers.

Without interference, thousands of people cross the River Parana every day from Paraguay to Brazil over the Bridge of Friendship loaded with products on which they pay no taxes. As police look the other way, he said, some smugglers cross the border 10 to 20 times a day. Earlier this year, Telemundo cameras were present as smugglers in Ciudad del Este loaded trucks headed for Brazil. They could have been laden with drugs or weapons, but no authorities ever checked.

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