Homeland Security

DATE=05/29/04

TYPE=CORRESPONDENT REPORT

TITLE=SAUDI / ATTACK (L-UPDATE)

NUMBER=2-316301

BYLINE=URSULA LINDSEY

DATELINE=CAIRO

CONTENT=

VOICED AT:

/// EDS: UPDATES casualty toll in intro; no changes to text or audio; please monitor CN file for further casualty updates. ///

INTRO: At least 16 people were killed and several taken hostage Saturday morning in Saudi Arabia, in attacks on foreigners. Saudi security forces later stormed a compound, where the militants reportedly holed up with an unknown number of hostages. Ursula Lindsey in Cairo reports on the events.

TEXT: Armed gunmen took hostages in a residential complex for foreigners in the Saudi city of Khobar, 400 kilometers northeast of the capital Riyadh. Five Lebanese hostages were released to Saudi forces. /// OPT /// But it remained unclear how many others were still being held. /// END OPT ///

The gunmen launched the attack by opening fire in the offices of the Al-Khobar Petroleum Center, killing several foreigners.

/// OPT /// The former head of the Egyptian Strategic Center of Armed Forces, General Hossam Sowaillam, says he thinks the attack aims to destabilized Saudi Arabia's oil industry.

/// ACT SOWAILLAM // OPT ACT ///

It is part of a terrorist plan put by Bin Laden and this al-Qaida, in order to spread their action in all fields, to inflict damages on the Saudi economy and enforce those foreigners working in these fields to withdraw, and go back to their countries.

/// END ACT // END OPT ///

Security officials say at least four gunmen went on to storm three residential compounds, which house employees of Shell, Honeywell and General Electric, among others, and took refuge there from the Saudi police force.

Former Egyptian diplomat Abdullah Al Ashaal says terrorists in Saudi Arabia are using dramatic strategies to draw the world's attention.

/// ACT AL ASHAAL ///

They are imitating some other militant groups like what happened in Iraq and what happened before in Lebanon in the 80s, and perhaps, they may internationalize their cause. Targeting the foreigners and taking some of them hostages, I think, this is to show the whole world that they have a cause, they have a logic and they have to be listened to.

/// END ACT ///

News agencies report al-Qaida has claimed responsibility for the attack in a statement posted to an Islamist Web site.

This is the third attack against foreigners in Saudi Arabia in less than a month. (SIGNED)

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