Since 1994 or earlier, the National Security Agency has been collecting electronic intercepts of conversations between members of the Saudi Arabian royal family, which is headed by King Fahd. The intercepts depict a regime increasingly corrupt, alienated from the country's religious rank and file, and so weakened and frightened that it has brokered its future by channelling hundreds of millions of dollars in what amounts to protection money to fundamentalist groups that wish to overthrow it.

The intercepts have demonstrated to analysts that by 1996 Saudi money was supporting Osama bin Laden's Al Qaeda and other extremist groups in Afghanistan, Lebanon, Yemen, and Central Asia, and throughout the Persian Gulf region. "Ninety-six is the key year," one American intelligence official told me. "Bin Laden hooked up to all the bad guys—it's like the Grand Alliance— and had a capability for conducting large-scale operations." The Saudi regime, he said, had "gone to the dark side."

In interviews last week, current and former intelligence and military officials portrayed the growing instability of the Saudi regime—and the vulnerability of its oil reserves to terrorist attack—as the most immediate threat to American economic and political interests in the Middle East. The officials also said that the Bush Administration, like the Clinton Administration, is refusing to confront this reality, even in the aftermath of the September 11th terrorist attacks.
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