Maybe Iraq Wasn't Such A Good Idea

The chickens are coming home to roost from the debacle in Iraq.

A major CIA effort launched last year to hunt down Osama bin Laden has produced no significant leads on his whereabouts, but has helped track an alarming increase in the movement of Al Qaeda operatives and money into Pakistan's tribal territories, according to senior U.S. intelligence officials familiar with the operation.

In one of the most troubling trends, U.S. officials said that Al Qaeda's command base in Pakistan is increasingly being funded by cash coming out of Iraq, where the terrorist network's operatives are raising substantial sums from donations to the anti-American insurgency as well as kidnappings of wealthy Iraqis and other criminal activity.

The influx of money has bolstered Al Qaeda's leadership ranks at a time when the core command is regrouping and reasserting influence over its far-flung network. The trend also signals a reversal in the traditional flow of Al Qaeda funds, with the network's leadership surviving to a large extent on money coming in from its most profitable franchise, rather than distributing funds from headquarters to distant cells.

Al Qaeda's efforts were aided, intelligence officials said, by Pakistan's withdrawal in September of tens of thousands of troops from the tribal areas along the Afghanistan border where Bin Laden and his top deputy, Ayman Zawahiri, are believed to be hiding.

Little more than a year ago, Al Qaeda's core command was thought to be in a financial crunch. But U.S. officials said cash shipped from Iraq has eased those troubles.

"Iraq is a big moneymaker for them," said a senior U.S. counter-terrorism official.

The evolving picture of Al Qaeda's finances is based in part on intelligence from an aggressive effort launched last year to intensify the pressure on Bin Laden and his senior deputies.

As part of a so-called surge in personnel, the CIA deployed as many as 50 clandestine operatives to Pakistan and Afghanistan — a dramatic increase over the number of CIA case officers permanently stationed in those countries. All of the new arrivals were given the primary objective of finding what counter-terrorism officials call "HVT1" and "HVT2." Those "high value target" designations refer to Bin Laden and Zawahiri.

The surge was part of a broader shake-up at the CIA designed to refocus on the hunt for Bin Laden, officials said. One former high-ranking agency official said the CIA had formed a task force that involved officials from all four directorates at the agency, including analysts, scientists and technical experts, as well as covert operators.

The officials were charged with reinvigorating a search that had atrophied when some U.S. intelligence assets and special forces teams were pulled out of Afghanistan in 2002 to prepare for the war with Iraq. ...

Al Qaeda in Mesopotamia, as the network's Iraq branch is known, has drawn increasingly large contributions from elsewhere in the Muslim world — largely because the fight against U.S. forces has mobilized donors across the Middle East, officials said.