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AL QAIDA STRUGGLES WITH FUNDING DROP

BAGHDAD [MENL] -- The U.S. military has determined that Al Qaida in Iraq was struggling with a decline in funds.

Officials said military intelligence has assessed that the Al Qaida network in Iraq has experienced a drop in funding from Saudi Arabia and Syria. They said this has forced the network to generate revenues in Iraq, largely through crime.

"It has to use the Sunni population to gain money to finance their operation," said Lt. Col. Morris Goins, commander of 1st Battalion, 12th Cavalry, Multinational Division North.

Goins told a June 4 briefing that Al Qaida has been forced to change its methods of operation in the Diyala province northeast of Baghdad. He said Al Qaida, rather than paying recruits, has been intimidating Sunnis to join or help the network.

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