FATAH USES JORDAN AS INSURGENCY BASE

TEL AVIV [MENL] -- Jordan has become an insurgency base for Fatah operatives
loyal to Palestinian Authority Chairman Yasser Arafat.

Israeli security sources said that after a lull of several years Fatah
agents have resumed the use of Jordan as a base for operations planning,
recruitment and the transfer of money from Iran to Arafat loyalists in the
West Bank and Gaza Strip. The sources said the Fatah operation, which began
about two years ago, has been raised by Israel in discussions with the
Hashemite kingdom.

"Iran and Hizbullah have been using Jordan as a base for operations,
particularly for the West Bank," a security source said.

"The Jordanians are trying to hard to stop it, but it's been a very
difficult task."

The Fatah insurgency network in Jordan has been led by Fuad Balbisi,
security sources said. Balbisi works in the PLO's Political Department in
Amman, headed by Farouk Khaddoumy, and has been financing Fatah insurgency
cells with money from Iran and Hizbullah. Balbisi was directing the
recruitment and operations of Fatah squads in the West Bank in attacks
against Israeli targets.
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