THE DNI ON AL QAIDA

This is from Director National Intelligence J. Michael McConnell's prepared testimony to the Senate Armed Services Committee on 2/27/2008. Note that Iraq is not considered a central front on the war against Al Qaida:

Al-Qa'ida in Iraq (AQI) suffered major setbacks last year, although it still is capable of mounting lethal attacks. Hundreds of AQI leadership, operational, media, financial, logistical, weapons, and foreign fighter facilitator cadre have been killed or captured. With much of the Sunni population turning against AQI, its maneuver room and ability to operate have been severely constrained. AQI's attack tempo, as measured by numbers of suicide attacks, had dropped by more than half by year's end after approaching all time highs in early 2007. We see indications that al-Qa'ida's global image is beginning to lose some of its luster; nonetheless, we still face multifaceted terrorist threats.

Al-Qa'ida and its terrorist affiliates continue to pose significant threats to the United States at home and abroad, and al-Qa'ida's central leadership based in the border area of Pakistan is its most dangerous component. Last July, we published a National Intelligence Estimate titled, "The Terrorist Threat to the US Homeland," which assessed that al-Qa'ida's central leadership in the past two years has been able to regenerate the core operational capabilities needed to conduct attacks in the Homeland:

--Al-Qa'ida has been able to retain a safehaven in Pakistan's Federally Administered Tribal Areas (FATA) that provides the organization many of the advantages it once derived from its base across the border in Afghanistan, albeit on a smaller and less secure scale. The FATA serves as a staging area for al-Qa'ida's attacks in support of the Taliban in Afghanistan as well as a location for training new terrorist operatives, for attacks in Pakistan, the Middle East, Africa, Europe and the United States.

--Using the sanctuary in the border area of Pakistan, al-Qa'ida has been able to maintain a cadre of skilled lieutenants capable of directing the organization's operations around the world. It has lost many of its senior operational planners over the years, but the group's adaptable decisionmaking process and bench of skilled operatives have enabled it to identify effective replacements.

--Al-Qa'ida's top leaders Usama Bin Ladin and Ayman al- Zawahiri continue to be able to maintain al-Qa'ida's unity and its focus on their strategic vision of confronting our allies and us with mass casualty attacks around the globe. Although security concerns preclude them from the day-today running of the organization, Bin Ladin and Zawahiri regularly pass inspirational messages and specific operational guidance to their followers through public statements.

--Al-Qa'ida is improving the last key aspect of its ability to attack the US: the identification, training, and positioning of operatives for an attack in the Homeland. While increased security measures at home and abroad have caused al-Qa'ida to view the West, especially the US, as a harder target, we have seen an influx of new Western recruits into the tribal areas since mid-2006. We assess that al-Qa'ida's Homeland plotting is likely to continue to focus on prominent political, economic, and infrastructure targets designed to produce mass casualties, visually dramatic destruction, significant economic aftershocks, and/or fear among the population.