U.S. to Resume Formal Relations with Egyptian Brotherhood

In a controversial move, the United States has decided to formalize relations with the Muslim Brotherhood (MB) in Egypt, according to a statement Wednesday by a senior U.S. official to Reuters.

"The political landscape in Egypt has changed, and is changing," said the official, speaking on condition of anonymity. "It is in our interests to engage with all of the parties that are competing for parliament or the presidency."

Seeking to downplay the significance of the announcement, the official presented the decision as a progression in U.S. policy rather than a radical shift in America's stance towards the MB.

Under the regime of ousted President Hosni Mubarak, the MB was a banned political organization, whose members were allowed to run for parliament by running as independents. The U.S. policy, in place since 2006, sought to exploit this loophole by allowing diplomats to maintain contact only with Brotherhood members elected in this way. The new policy allows diplomats to deal directly with low-level Brotherhood party officials as well as MB parliamentarians.

Commenting to journalists in Budapest, U.S. Secretary of State Hillary Clinton said the "Obama administration is continuing the approach of limited contacts with the Muslim Brotherhood that have existed on and off for about five or six years." She added that the supposed shift "is not a new policy but it is one that we're re-engaging in."

New or old, the decision to resume formal contacts is drawing criticism from those who are skeptical of the MB and its violent, Islamist origins, and continued support for "resistance."

"It's going to stir up demons," said Edward Walker, a former U.S. ambassador to Egypt and Israel. "You have got an awful lot of people who are not very happy with what the roots of the Brotherhood have spawned…There will be people who will not accept that the Brotherhood is of a new or different character today." Among the byproducts of the MB ideology is the designated terrorist organization Hamas.

Though Clinton insisted that the U.S. "will continue to emphasize the importance and support for democratic principles" in its dealings with the MB, critics argue that the ideas conveyed by some Brotherhood members are inconsistent with these principles. Some members speak of creating an "Islamic State," causing concern that such a state will be based entirely on Islamic (Sharia) law and not democracy.

Adding to the skepticism is the fact that the Brotherhood is currently divided and has been less than transparent in its approach to Egypt's democratic elections to be held in September.

MB spokesman Mahmud Ghozlan said his group is willing to open communications with the U.S. as long as its "values are respected." He noted that there had been "no direct contacts" in the past.

In addition to the U.S. policy shift regarding the MB in Egypt, unsubstantiated reports indicate that the U.S. government may have initiated contact with the Syrian MB as well. In a recent conference in London, representatives from the U.S. and U.K. allegedly met with the former leader of the group, Ali al-Bayanuni.

Taliban Attacks InterContinental Hotel in Kabul, 10 Reported Killed

At least six Taliban suicide bombers and gunmen attacked the InterContinental Hotel in Kabul, Afghanistan Tuesday night. Early reports said Afghan police exchanged gunfire with assailants inside the five-story hotel, where many journalists and foreign diplomats stay while visiting the Afghan capital. Some reports said that at least 10 people were killed in the attack, which the Taliban claimed responsibility for.

"Our [fighters] entered the hotel, and they've gone through several stories of the building and they are breaking into each room and they are targeting the 300 Afghans and foreigners who are staying," said Taliban spokesman Zahibullah Mujahid, who claimed the attackers killed or wounded at least 50 people.

Jihadist groups have made attacks in Kabul a top priority. In February, a suicide bomber attacked the Safi Landmark Hotel , killing two people and wounding two others. On June 18, a suicide squad attacked a Kabul police station, killing nine people.

Shabaab Moves Troop Contingent to Yemen

Extremists from Somalia's Al-Qaida-linked al-Shabaab have evacuated more than 70 troops to Yemen, according to All Headline News [AHN]. The effort is also a reinforcement of al-Qaida gains in Yemen, where discontent has paralyzed the central government and given the group the opportunity to form a small Islamic Emirate in the country's south.

A small boat carrying 76 foreign fighters, including top commanders of al-Shabaab, sailed from the Somali port town of Kismayo on Sunday evening, according to an al-Shabaab fighter calling himself Abu-Hureryah. Western helicopters had struck an al-Shabaab training camp on the outskirts of the port just days before, killing more than 39 militants.

"For the past several months we have been losing more lands and many fighters of us were killed, so this time it seems that our brothers in Yemen have more chance than we have here in Somalia… that is why the Mujahideen have left for Yemen," Abu Hureryah told AHN during a telephone conversation. "I will not go to Yemen myself, I would like to go to Kenya where my family had fled already—I will go back to Somalia when Islam is more strong," the 19 year-old said during the interview.

Abu Hureryah said that more Somali and foreign fighters would be evacuated from the port, while AHN reported that more fighters would be evacuated from fighting in Somalia's capital, Mogadishu.

The news reports back up claims about al-Shabaab's growing relationship with al-Qaida of the Arabian Peninsula (AQAP), made by incoming U.S. Defense Secretary Leon Panetta.

"The threat from Al-Shabaab to the U.S. and Western interests in the Horn of Africa and to the U.S. homeland is significant and on the rise," Panetta said in written remarks to the Senate Armed Services committee. "Al-Shabaab leaders, who have claimed affiliation with Al-Qa'ida since 2007, are developing ties with Al-Qa'ida in the Arabian Peninsula, and are showing an increasing desire to stage international terrorist attacks in addition to their acts of violence inside Somalia," he noted.

Al-Shabaab has fought a back-and-forth battle with Somali and African Union (AU) forces. The group has successfully recruited many youths from East Africa and the West, but has been plagued by desertions from forced conscripts in Somalia. After some successes against African forces, the group has lost a significant amount of territory, which was formed into another autonomous region ruled by government supporters.

Al-Qaida Video Prompts Response from U.S. Mayors

Six hundred American mayors initiated a bipartisan ad campaign Tuesday, urging Congress to fill glaring gaps in U.S. gun laws, according to a press release posted on PR Newswire. The ad draws attention to an al-Qaida propaganda video released June 3, which encourages terrorists to capitalize on weak U.S. gun restrictions.

"America is absolutely awash with easily obtainable firearms," stated American-born terrorist Adam Gadahn, a.k.a. Azzam al-Amriki, encouraging "lone wolf" terrorists to inflict "major damage" on "the enemies of Islam."

"You can go down to a gun show at the local convention center and come away with a fully automatic assault rifle without a background check and, most likely without having to show an identification card. So what are you waiting for?"

While the public cannot legally purchase fully automatic weapons, the terrorist video points out pronounced weaknesses in firearms regulation. Private dealers—who account for roughly 40 percent of U.S. gun sales, according to the press release—do not conduct background checks, and sell in places ranging from gun shows to the Internet.

The al-Qaida video also identifies a second major security gap in U.S. national security: federal authorities have not passed legislation preventing terror suspects, including those on government watch lists, from purchasing guns and explosives.

This loophole pertains to any and all weapons readily available to the public, such as semi-automatic assault weapons and other "military-style weaponry."

The mayors who launched the ad campaign, titled "What Are You Waiting For," emphasize the importance and widespread support for fixing this security gap. "Criminals already know how to take advantage of gaps in our gun laws, and now Al Qaeda knows, too," said New York City Mayor Michael R. Bloomberg. "Americans, including NRA members, overwhelmingly support stronger laws to keep guns away from terrorists and other dangerous people."

Pending legislation, such as the Fix Gun Checks Act (S.436/H.R.1781) and the Denying Firearms and Explosives to Dangerous Terrorists Act (S.34/H.R.1506), aims to close the private-sale loophole and grant the Attorney General discretion to block firearm sales to terror suspects.

Gun owners and private citizens alike support these initiatives with a January 2011 poll finding 86 percent of Americans and 81 percent of gun-owning Americans supporting universal background checks and 88 percent of both groups supporting the banning of sales to individuals on terror watch lists.

Iran Hosts Counter-Terrorism Conference in Bid to Restore National Image

In an apparent effort to repair its regional and international standing, Iran hosted its second counter-terrorism conference in two months this weekend in Tehran, according to a report by the Middle East Media Research Institute (MEMRI). The goals of the two-day "World without Terrorism" conference, as outlined by Iranian Supreme Leader Ali Khamenei in the opening ceremony, were to define terrorism and identify its main causes.

Echoing statements made in Iran's May 14-15 conference, Khamenei told attendees that there exist "satanic world powers which use terrorism in their policies and in their planning to achieve their illegitimate goals." In particular, he said, the "Zionist regime" had from its inception been a perpetrator of global terrorism. He also accused the U.S., the U.K., and other Western governments of having "a black record of terrorist behaviors."

While pointing fingers at Israel and the West, Iran conveniently failed again to mention its own support of designated terrorists Hizballah and Hamas, or other noted militants.

In light of recent setbacks, it is suspected that the more likely purpose of the conference was for Iran to reassert itself as a leading regional and international force. Domestically, Iran has struggled as of late due to a growing rift between Khameini and Iranian President Mahmoud Ahmadinejad. On a regional scale, the conflict in Syria has threatened one of Iran's closest allies while the Islamic Republic also lost a standoff with Saudi Arabia and the Gulf states in the recent crisis in Bahrain. To add to its current issues, the EU also refused to renew talks with Iran over its nuclear program.

Despite its situation, the conference attracted several noteworthy heads of state, including Afghan President Hamid Karzai, Tajik President Emomali Rahmonov, Pakistani President Asif Ali Zardari, Iraqi President Jalal Talabani, and Sudanese President Omar Al-Bashir, as well as representatives from Turkmenistan, Azerbaijan, and Mali.

The conference, however, did not generate the turnout Iran had hoped for. Though Tehran tried to make the conference an international event, ultimately the attendees were only neighbors who share Iran's security interests, and satellites of the regime. Saudi Arabia and the Gulf states refused to participate in protest of Iran's support of Shiite protests in Bahrain and other Arab countries.

In spite of the blatantly anti-U.S. and anti-Western agenda of the conference and the involvement of Sudanese President Bashir, who is wanted by the United Nations for war crimes, UN Secretary-General Ban Ki-moon commended Iran for its effort in organizing the event.

"The U.N. has an important role in fighting terrorism and I hope that the Tehran conference can attain [this] great goal," Ban said in a message delivered to the conference through a special envoy. "Moving towards negotiation[s] and recognition among nations according to the U.N. charter, having friendly relations with nations and improving relations among them, and performing humanistic activities are some of the important strategies against terrorism."

For more information on the conference, click here.

Congressman Asks IRS to Investigate CAIR

Rep. Frank Wolf, R-Va., asked the IRS Monday to investigate whether the Council on American-Islamic Relations (CAIR) has illegally received or solicited funds from foreign governments.

The letter, sent to IRS Commissioner Douglas Shulman, was written in response to news that CAIR has lost its IRS tax exempt status for failing to properly file annual tax reports, known as form 990s, for three years in a row.

The fact that CAIR's donations are no longer tax deductible was exposed last week by the Investigative Project on Terrorism. CAIR's national entities, CAIR-National and the CAIR Foundation, were both included on a list of hundreds of thousands of organizations that had lost their status for failing to file the paperwork.

But Rep. Wolf indicated that CAIR differs from those thousands of other organizations because it was listed as an unindicted co-conspirator (UCC) in the case of a U.S. Muslim charity found guilty of funneling millions of dollars to Hamas. When CAIR tried to have its named removed from the UCC list, a U.S. district court judge declined to strike CAIR's name.

"Given CAIR's status…this failure to comply with federal disclosure laws is all the more troubling," Rep. Wolf wrote.

Rep. Wolf expressed concern over CAIR Executive Director Nihad Awad's letter to Libyan dictator Muammar Gaddafi, which solicited money and praised Gaddafi. Wolf also asked the IRS if it is aware that Awad tried to solicit funds from Sudanese President Omar Hassan Bashir, who has been indicted internationally as a war criminal.

CAIR told Fox News that it hopes to appeal to the IRS and gain retroactive tax-exempt status. That would mean that any donations accepted during the interim would be tax deductible upon CAIR's reinstatement.

"We'll be doing whatever's necessary…to rectify the situation," CAIR Spokesman Ibrahim Hooper said. CAIR has 15 months to turn in papers explaining why the organization failed to file, and to submit the missing or corrected annual forms and a new application for tax exempt status.

Hooper said that CAIR filed properly in the past few years, but that the problems come from "questions" over tax filings dating back to 2006 or 2007.

State Department records obtained by the Investigative Project on Terrorism show CAIR sent delegations in 2006 to Saudi Arabia and the United Arab Emirates seeking millions of dollars in support.

CAIR-National's most recent available tax records are from 2005. A required attachment of donations over $5,000 to that year's filing showed a $600,000 donation from Saudi businessman Adnan Bogary. According to the list, it was the single largest donation to CAIR for that tax year.

Click here to read Rep. Wolf's full letter to the IRS.

U.S. Allocates $45M to Fight Somali Terrorists

The U.S. will send $45 million to Uganda and Burundi to help defeat the Somali militant group al-Shabaab, according to documents obtained by the Associated Press.

News of the aid comes after an airstrike last Thursday struck an al-Shabaab convoy travelling through southern Somalia, killing and wounding terrorist fighters. Though the country behind the airstrike has not been confirmed, a spokesman for the U.S. Embassy in Kenya said that a "partner country" carried out the attack.

In the past, U.S. aircraft have conducted targeted killings of al-Shabaab members.

The new U.S. aid package aims to improve the military capabilities of Uganda and Burundi, two major players in the African Union Mission in Somalia (AMISOM), which is committed to peacekeeping in Somalia. The country has not had a stable government in over 20 years.

Both Uganda and Burundi pledged in March to send an additional 4,000 troops, to add to the already 8,000 Ugandan and Burundian AMISOM troops in Somalia. So far, the two countries have sent 9,000 troops total into the country.

As part of the U.S. package, Uganda and Burundi will receive military gear, including four small shoulder-launched droves, body armor, night-vision gear, communications and heavy construction equipment, generators and surveillance systems. The U.S. has also pledged to provide training for that equipment.

Djibouti, which houses the U.S.'s only military base in Africa, will receive over $17 million from the aid package. The country is located directly to Somalia's north. Kenya, which has pledged support to Somalia, will receive millions for helicopter upgrades and training.

The allocated aid, approved last week by Pentagon officials, comes as Rep. Peter King, R-N.Y., is preparing to hold a hearing focusing on al-Shabaab and reports that the group is attempting to join forces with al-Qaida in the Arabian Peninsula (AQAP).

In early June, CIA Director Leon Panetta warned of al-Shabaab's growing influence and its ties to the Yemen-based AQAP. A jailbreak in Yemen last Wednesday, during which dozens of AQAP militants escaped, underscored the risk that the al-Qaida franchise could fill a power vacuum in the country.

"Al-Shabaab leaders, who have claimed affiliation with al-Qaida since 2007, are developing ties with al-Qaida in the Arabian Peninsula," Panetta wrote in a Senate hearing statement. Al-Shabaab is "showing an increasing desire to stage international terrorist attacks in addition to their act of violence inside Somalia," the statement continued.

Panetta expressed concern over foreign fighters, including Somalis from the U.S., joining al-Shabaab. On June 9^th, the FBI identified a suicide bomber who attacked a checkpoint on May 30th in the Somali capital, Mogadishu, as a man from Minnesota.

Rep. King's hearing on al-Shabaab, expected to be held in July, will be the third in a series of hearings on the threat of radicalization from within the American Muslim community in the U.S.

In Imploding Yemen, Another Jihadist Jailbreak (UPDATED)

UPDATE: A post on jihadi web forum Ansar al-Mujahideen tells a different story about how jihadis in Yemen escaped from prison last Wednesday. A tunnel used in the escape—originally attributed to the escapees themselves— appears now to have been dug by jihadis outside the prison walls. The story on Ansar al-Mujahideen indicates that jihadis tunneled into the prison from the outside over the course of one and half months, formed armed escapee groups, and departed the prison quietly, except for the last group that opened fire on a prison observation tower. The post uses Google Maps satellite imagery to show details of the prison compound and the targeted sites.

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With Washington planning for the possibility of a jihadist takeover in Yemen, the security situation there continued spiraling downhill Wednesday, as between 40 and 60 al-Qaida militants broke out of jail in southern Yemen. The jailbreak, which occurred while Assistant Secretary of State for Near Eastern Affairs Jeffrey Feltman was visiting the country, underscored the failure of the Yemeni government to discharge its security responsibilities and raised further questions about its ability to prevent jihadist operations in its territory.

The inmates reportedly escaped using a 50-yard-long tunnel they had dug themselves. A jail official told the Washington Post that the prisoners attacked a prison guard with daggers, took his gun and fired it as they were escaping. One guard was killed and another wounded. Gunmen outside the prison aided the escape by shooting at prison guards to distract them.

Yemen's state-run news agency said that at a meeting Wednesday with acting President Abed Rabbo Mansour Hadi, Feltman praised the interim leader's moves to meet with political opponents, open roads and remove armed men from cities. But the prison break underscored the jihadist challenge to the regime from al-Qaida in the Arabian Peninsula (AQAP)—currently regarded as the most immediate terror threat to the United States.

Recent reports indicate that, for the first time, militants are seeking to capture and hold large sections of territory in southern Yemen, benefiting from a dangerous power vacuum created by the popular rebellion against longtime strongman Ali Abdullah Saleh. In the AQAP-occupied town of Zinjibar, residents describe a ghost town without electricity, water or other services. Government authority is absent, and extremists man local checkpoints.

Adding to the chaos and uncertainty are reports that Saleh—currently being treated in Saudi Arabia for severe burns and other injuries received when opposition forces shelled his palace in Sana earlier this month—might be returning to Yemen later this week. The rumorsspurred threats of war from tribal rivals.

Wednesday's mass escape was just the latest in a series of jihadist jailbreaks in Yemen over the past decade. Perhaps the most notorious was the February 2006 escape of 23 prisoners from a prison in Sana. Two of those who escaped that time were Nasir al-Wuhayshi and Qaim al-Raymi, who became top leaders of AQAP.

Read more about the latest jihadist prison break in Yemen here.

Assad's Murderous Rampage Poisons Turkish Ties

The Syrian regime's continuing attacks on civilians  have triggered a growing refugee crisis and have severely damaged Damascus' relations with Turkey. Turkish officials summoned the Syrian ambassador to discuss the refugee situation this week, and Syrian forces massed on the Turkish border, moving close enough to make eye contact with Turkish soldiers on the other side.

On Thursday, hundreds of civilians cut through a fence on the Turkish border near the village of Khirbet al-Joz to escape an assault by the Syrian Army's Fourth Division and Presidential Guard, headed by Maher Assad (brother of Syrian President Bashar Assad).

More than 30 Syrian tanks were seen entering Khirbet al-Joz and automatic gunfire could be heard on the Turkish side of the border. Residents said snipers could be seen on rooftops.

Villagers in nearby Managh said that during a simultaneous offensive there, marauding soldiers drove through the streets in vehicles mounted with machine guns, firing indiscriminately at civilians.

More than 10,000 Syrians are in refugee camps in Turkey administered by the Turkish Red Crescent Society. More than 1,500 crossed the border on Thursday, and at least 11,500 more remain in camps in northern Syria, according to the Turkish Foreign Ministry. With thousands of people thought to be in hiding on the Syrian side, these numbers are likely to grow in coming days.

Meanwhile, Syrian students studying in Turkey say they have been blacklisted by the Assad regime for participating in demonstrations against it. Mohammed al-Mahmoud and Amer Afoura, both from Aleppo, are studying international relations and civil engineering respectively at a Turkish university. After they participated in a protest against the Ba'athist dictatorship, they received a tip that it was not safe to return to Syria during their summer break, which began last week.

Mahmoud and Afour say they know eight other students in the same predicament. A friend of theirs was recently arrested and interrogated by the Mukhabarat, the Syrian secret police.

The deteriorating Syrian-Turkish relationship gives Washington and the West diplomatic room to adopt a more assertive stance with Assad, a close ally of Iran and leading supporter of terrorism, according to David Schenker of the Washington Institute for Near East Policy. Between 2002 and 2010, Syria and Turkey signed more than 50 cooperation agreements, including counterterrorism and counterinsurgency accords, and conducted their first-ever joint military exercise. This year, Turkey became Syria's largest trading partner.

But in the wake of the "Arab Spring" coming to Syria, the warm relationship between Assad and Turkish Prime Minister Recep Tayyip Erdogan appears to be over, making Damascus increasingly vulnerable to U.S. pressure. Schenker—previously Levant director at the Defense Department, where he advised the secretary of defense on Syria issues—argues that it's time for Washington to realize what Turkey already has: that Assad is irredeemable.

State Department Warns Flotilla Groups

The U.S. State Department issued a press statement Friday expressing concern over groups planning to participate in an impending flotilla to the Hamas-controlled Gaza Strip. The flotilla, slated to set sail next week, aims to intentionally break Israel's naval blockade of the coastal Strip.

"Groups that seek to break Israel's maritime blockade of Gaza are taking irresponsible and provocative actions that risk the safety of their passengers," the statement reads. It notes that last month was the one year anniversary of last year's Freedom Flotilla, which resulted in the death of nine passengers after activists on the IHH-owned Mavi Marmara ship staged a violent confrontation with Israeli commandos.

"Established and efficient mechanisms exist to transfer humanitarian assistance to Gaza," and the U.S. State Department urges "all those seeking to provide such assistance to the people of Gaza to use these mechanisms, and not to participate in actions like the planned flotilla."

Israel imposed a naval blockade on the Gaza Strip in 2007 to prevent weapons and materials that could be used by Hamas in terrorist attacks from reaching the region. Yet "[r]ecent seizures by Israel and Egypt of advanced military systems, weapons, and ammunition, bound for terrorist groups in Gaza, as well as periodic rocket and mortar attacks from Gaza against Israeli civilians, highlight the continuing problem of illicit arms smuggling to Gaza," according to the State Department.

On Thursday, Secretary of State Hillary Rodham Clinton criticized the planned flotilla, saying it is not "necessary or useful."

A new travel warning for Israel, the West Bank and Gaza was released by the State Department Wednesday. The release warned "against participation in any attempt to reach Gaza by sea."

Despite the State Department's actions, approximately 50 people, including media personnel, are currently in Greece preparing to sail to Gaza on a U.S. flagged ship. The U.S. Boat to Gaza is expected to be accompanied by at least nine other boats from countries around the world. Its organizers have publicly dismissed the government's concerns, and have claimed that they are engaging in "non-violence training" in case of a confrontation with Israel while en route to Gaza.

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