The name of the Bangladeshi group found its place in the list of "selected terrorist groups" in a US State Department report titled "Country Reports on Terrorism for 2004".

It said Bangladesh supports the global war on terror but its ability to combat terrorism is undermined by various factors and its long practice of moderate Islam is increasingly under threat from extremists.

The report mentioned the HUJI-B's leader as Shauqat Osman, mostly unheard, and its suspected involvement in an attempt on Sheikh Hasina and explosions at cultural programmes as well as its affiliation with Pakistani militant groups who all maintain contacts with al-Qaeda.

"The mission of HUJI-B, led by Shauqat Osman, is to establish Islamic rule in Bangladesh. HUJI-B has connections with Pakistani militant groups Harakat ul-

Jihad-I-Islami (HUJI) and Harakat ul-Mujahidin (HUM), which advocate similar objectives in Pakistan and Jammu and Kashmir," said the US report.

"These groups all maintain contacts with the al-Qaeda network in Afghanistan. The leaders of HUJI-B and HUM both signed the February 1998 fatwa sponsored by Usama bin Ladin that declared American civilians to be legitimate targets for attack," it pointed out.

About HUJI-B's activities, the report said: "HUJI-B was suspected in the assassination attempt in July 2000 of (then) Bangladeshi Prime Minister Sheikh Hasina. The group may also have been responsible for indiscriminate attacks using improvised explosive devices at cultural gatherings in Dhaka in January and April 2001."

The strength of the group was mentioned "unknown" and added that "some estimates of HUJI-B cadre strength suggest several thousand members."

"The group operates and trains members in Bangladesh, where it maintains at least six camps... Funding of the HUJI-B comes primarily from madrassas in Bangladesh. The group also has ties with militants in Pakistan that may provide another funding source," it said.

The report said Bangladesh supports the global war on terror but its ability to combat terrorism is undermined by weak institutions, porous borders, limited law enforcement capabilities, and debilitating in-fighting between the two major political parties.

It also said Bangladesh's long tradition of moderate Islamic nation is increasingly under threat from extremist alternatives, already offering an attractive breeding ground for political and sectarian violence.

"Endemic corruption, poverty, and a stalemated political process could further contribute to the type of instability and widespread frustration that has elsewhere provided recruits, support, and safe haven for international terrorist groups," it said.

The report mentioned that "there was an increase in political violence" using explosives in 2004. In May, the British high commissioner and more than 70 others were injured in a grenade attack in Sylhet. In August, approximately 20 Awami League supporters were killed, and 200 injured during an attack on the party's rally in Dhaka.

It said Bangladesh, with US technical assistance, is strengthening police institutions with a professionalisation programme, enhancing police and banking capabilities to combat terrorist financing, and strengthening border control systems to detect suspicious travel and improve the integrity of Bangladeshi travel documents.

The United States is assisting Bangladesh in developing new, stronger laws to enhance banking oversight and enforcement and in creating a financial intelligence unit (FIU).

Appreciating the government, it said the government is committed to enforcing UN Security Council resolutions and actions related to terrorism, including the identification and freezing of assets of individuals and organisations designated as terrorists or terrorist supporters, such as the Saudi-based charity al-Haramain Foundation.

"It also ordered the closure of the local Rabita Trust office and the departure from Bangladesh of its expatriate staff. The Bangladesh military maintains a large presence in the Chittagong Hill Tracts, and has been successful in locating hidden weapons.

In April it seized a large cache of weapons in Chittagong."

"Bangladesh is taking steps to improve its effectiveness in preventing maritime smuggling and its capabilities in terrorist interdiction operations," it said.