TerrorismIsrael withdraws from U.S. terror case to placate China

Published 22 November 2013

The Israeli government has prohibited a former security official from testifying in an anti-terrorism case in the United States. The case involves families of victims of Palestinian suicide bombers who claim the Bank of China facilitated transfers of funds used to carry out the suicide attacks, and other attacks which are not part of the case. The Israeli government initially pushed for the official’s testimony because it would have shed light on the services the Bank of China offered Hamas and Islamic Jihad – but now says it would not allow him to testify for fear the testimony would reveal methods and sources.Critics of Netanyahu’s U-turn on the issue of fighting terrorism, an issue which has been central to his political career, say that preventing the official from testifying has nothing to do with intelligence information. Rather, it has to do with Israel’s growing economic and security relations with China.

Israel reverses direction to accomodate China // Source: sawkyawoo.com

The Israeli government has prohibited a former security official, Uzi Shaya, from testifying in an anti-terrorism case in the United States. The case involves families of victims of Palestinian suicide bombers who claim the Bank of China facilitated transfers of funds used to carry out the suicide attacks, and other attacks which are not part of the case.

The Las Vegas Sun reports that in a petition to the American court, the Israeli government requested that the court revoke the deposition subpoena it had issued to Shaya, who has knowledge about the alleged transfer of funds via the Bank of China and its branches in the United States to Hamas, the organization which sent the suicide bombers on their mission.

Victims of the suicide attack, and critics of the move by the Israeli government, say Israel is caving into political pressure from China.

This motion asserts that Israel will forgive the supporters and perpetrators of acts of terror against Israelis and Jews. This is unacceptable,” said Nitsana Darshan-Leitner, a lawyer representing twenty-two families of people who were killed in Palestinian suicide bombings. “Prime Minister (Benjamin) Netanyahu, by turning his back on the victims of terror, is not only denying justice to those who have paid the ultimate price, but he is sending a message to the terrorists and the whole world that Jewish blood is cheap.”

In the motion obtained by the AP, Israel said that allowing Shayal to testify would divulge state secrets that would endanger Israel’s national security.

The families accuse the Bank of China, through its U.S. branches, of facilitating transfers of funds for Hamas and Islamic Jihad, both are terrorists groups that have killed hundreds of Israelis. The family of Daniel Wultz, an American who was killed in a 2006 suicide bombing in Tel Aviv carried out by Islamic Jihad, is pursuing a separate but related case against the Bank of China. Raising a high profile case even higher, Wultz’s mother, Sherly, is a cousin of U.S. House Majority Leader Eric Cantor.

Naftali Moses, whose son Avraham was murdered in a Jerusalem library attack in 2008, lashed out at the Israeli prime minister for the decision to prohibit Shaya from testifying, “Netanyahu’s office promised to fight terror — and they are backing down,” he said. “Netanyahu’s office promised to aid us in our court case - and they have forgotten the victims of terror in favor of relations with the Chinese.”

The families of the victims are seeking hundreds of millions of dollars in damages in U.S. courts. A verdict against the bank on claims, based in part on U.S. anti-terrorism laws, could affect the bank’s ability to operate in the United States.

The Sun notes that the success of the case for the victims depends heavily on Shaya’s testimony, as he was part of a delegation of Israeli counterterrorism officials who met with Chinese officials in April 2005 to warn about Hamas and Islamic Jihad’s use of the Bank of China to transfer funds to militants. At that meeting, the Israelis asked Chinese officials to “take action” to prevent further transfers.

In a 29 August 2013 letter to lawyers for the victims, Shaya said he wanted to testify but that he needed permission from the Israeli government to proceed. Shaya’s testimony, scheduled for 25 November in New York, will not proceed.

In a statement released Saturday, Netanyahu’s office said while it was “steadfastly committed” to the security of its people, it was also obligated to ensure that information gathered by its officials remains confidential.

After conducting a comprehensive review of the matter, the State of Israel concluded that it cannot allow the former official to be forced to disclose in foreign legal proceedings any information that came to his knowledge in the course of his official duties,” the statement read. “The disclosure of such information would harm Israel’s national security, compromise Israel’s ability to protect those within its borders, and interfere with international cooperative efforts to prevent terrorism.”

Critics of Netanyahu’s U-turn on the issue of fighting terrorism, an issue which has been central to his political career, say that preventing Shaya from testifying – after promising the families he would testify – has nothing to do with intelligence information. Rather, it has to do with Israel’s growing economic and security relations with China. The Chinese said they would reconsider an official invitation to Netanyahu to visit China if the Israeli government allowed Shaya, or any other government official, to testify for the plaintiffs against the Bank of China.

Netanyahu then decided that, on balance, the relationship with China had to take precedence, and he vetoed Shaya’s testimony.

His official visit to China went through as planned.