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                                                            April 11, 1996

                                HIZBULLAH


The Hizbullah is an umbrella organization of various radical Shi'ite
groups and organizations which adhere to a Khomeinistic ideology. The
organization was established following the 1982 Peace for Galilee War in
Lebanon (and an increased Iranian presence and influence in Lebanon). The
Hizbullah organization was established as an organizational body for
Shi'ite fundamentalists, led by religious clerics, who see in the adoption
of Iranian doctrine a solution to the Lebanese political malaise. This
included the use of terror as a means of attaining political objectives.

Toward the end of 1982 Iran sent fighters from its 'Iranian Revolutionary
Guards' in order to assist in the establishment of a revolutionary Islamic
movement in Lebanon whose members would participate in the 'Jihad', Holy
War, against Israel. These forces, which were located in the area of
Ba'albek in the northern Beqa'a valley, bestowed on the area an
Iranian-Islamic character and constituted the core of the Hizbullah
organization in Lebanon.

The organization maintains a training apparatus in Lebanon throughout the
villages and their surroundings, as well as outside of Lebanon. Training
is aimed at building a reliable manpower source for its military forces as
well as for its terror arm.

The spiritual father of the movement in Lebanon is Sheikh Muhammed Hussein
Fadlallah who acts as chief Mujtahid - arbiter of Islamic law - of the
Shi'ite community in Lebanon. With the passage of time, Hizbullah has
turned into an organization of secondary level groups working on the local
level led by regional functionaries.

The current Secretary General of Hizbullah is Hassan Nasrallah. At the
start of the 1980's he was responsible for the Beka'a area on behalf of
the AMAL movement. He left the organization in 1982 and affiliated with
Hizbullah, taking with him many of his followers. Following the death of
Abbas Musawi, he was unanimously elected as his successor as commander of
operations.



                                 IDEOLOGY

The ideological basis of Hizbullah is Khomeinism and its principle goal is
the establishment of a pan-Islamic republic headed by religious clerics.

The organization's world view was first published in its political
platform in February 1985, as follows:

* The solution to Lebanon's problems is the establishment of an Islamic
republic as only this type of regime can secure justice and equality for
all of Lebanon's citizen's.

* The Hizbullah organization views as an important goal the fight against
'western imperialism' and its eradication from Lebanon. The group strives
for complete American and French withdrawal from Lebanon, including all
their institutions.

* The conflict with Israel is viewed as a central concern. This is not
only limited to the IDF presence in Lebanon. Rather, the complete
destruction of the State of Israel and the establishment of Islamic rule
over Jerusalem is an expressed goal.

Part of this radical ideology is the group's militant approach using
terror as a means of attaining its goals. Hizbullah decries the existence
of Israel ('the little Satan'), viewed as foreign to the region and which
constitutes a threat to Islam and Muslims. The destruction of Israel and
the liberation of Jerusalem is deemed a religious obligation. The
Hizbullah organization justifies the use of terror against these enemies
as a weapon in the hands of the weak and oppressed against the strong
aggressor. In an effort to act upon and realize the predetermined
ideological lines the group's leaders actively plan and perpetrate terror
attacks against IDF and SLA forces, preach religious extremism against
Israel and disseminate Iranian ideology. The Hizbullah extends the
conflict into Israeli territory and does not restrict its struggle to
areas in Lebanon.

With the signing of the 'Ta'if Agreement' (1989) and the beginning of the
'Syrian arrangement in Lebanon, the Hizbullah has been forced to conform
to Syrian dictates. The Syrian interest in the continuation of terrorist
attacks in South Lebanon has enabled the Hizbullah to maintain its unique
status in the Lebanese arena as the only major military force yet to be
disarmed. The Syrians have prevented the Lebanese government from harming
the military capabilities of the Hizbullah, under the pretext of opposing
the Israeli occupation, while at the same time enforcing their dictates
upon the organization during periods when they are interested in calming
the situation in southern Lebanon (as was the case following 'Operation
Accountability' in July 1993 or the period coinciding with the
Assad-Clinton meeting in January 1994).


THE SPREAD OF HIZBULLAH INTO SOUTHERN LEBANON

As the organizational infrastructure developed, Hizbullah, with Iranian
and Syrian assistance, began to establish an extensive military network in
the Ba'albek area. Its militias have since spread into the Shi'ite
neighborhoods in southern and western Beirut as well as into southern
Lebanon.

This network is the principle base of Hizbullah activities as well as for
those of other radical Shi'ite groups. Thousands of Hizbullah activists
and members are located in the Beqa'a valley, Beirut and southern Lebanon.
These areas also offer a base for the recruitment of additional activists
and fighters among the local Shi'ite populations.

Following the IDF withdrawal from Lebanon in 1985 the Hizbullah
organization consolidated itself. The consolidation included the
establishment of storage depots for weapons, recruitment of activists and
fighters, and widespread aid to residents in S. Lebanon, such as the
donation of money, equipment, medical supplies, etc. The purpose of the
aid was to gain the support of the local population in favor of the
organizations activities in the South.


ATTACKS AND TERRORISM

Using cover names such as 'Islamic Jihad', 'The Revolutionary Justice
Organization' and 'The Islamic Resistance', with the blessings of its
religious leaders, Hizbullah has carried out a series of high profile
attacks against Israeli targets in southern Lebanon and American and
Multinational Forces targets in Lebanon. Only later did their attacks
become more intensive as well as demonstrating better planning, especially
immediately prior to the opening of the peace process.

In 1991, the Hizbullah was responsible for 52 attacks, as compared to 19
attacks the organization carried out in 1990. In 1992, the Hizbullah
launched 63 attacks and in 1993, 158 attacks, when during the course of
'Operation Accountability' they fired hundreds of Katyusha rockets into
the Security Zone and Israeli territory.

In 1994 a total of 187 attacks against Israeli troops and positions by
Hizbullah were recorded. There were 119 instances of artillery fire, 31
detonations of explosive charges and 2 frontal assaults on IDF positions.

In 1995 a total of 344 attacks against Israeli troops and positions by
were recorded. There were 270 instances of artillery fire, 64 detonations
of explosive charges and 2 frontal assaults on IDF positions.


APPENDIX: MAJOR HIZBULLAH TERRORIST ACTIVITY SINCE DECEMBER 1995

December 6, 1995 - Clash between IDF and Hizbullah terrorists in the
central region of the security zone. 1 IDF soldier killed and 3 wounded.

December 29, 1995 - 2 Katyusha rockets were fired at Northern Israel. 1
civilian was wounded and 4 other civilians were treated for shock.

February 28, 1996 - Attempt by terrorist to infiltrate northern Israel
utilizing an ultra-lite aircraft.

March 4, 1996 - Detonation of explosive charge near Kibbutz Manara. 4 IDF
soldiers were killed and 9 were wounded

March 10, 1996 - Detonation of explosive charge in Southern Lebanon. 1 IDF
soldier killed.

March 14, 1996 - Ambush of IDF convoy on the Reihan - Aiyeshia road. 8 IDF
soldiers were wounded.

March 20, 1996 - Suicide bomber detonates explosive charge in front of an
IDF convoy. 1 soldier killed and 1 civilian was wounded.

March 30, 1996 - 2 Katyusha salvos were fired at the Galilee. 1 civilian
was wounded.

April 9, 1996 - 2 Katyusha salvos were fired at the Galilee. 36 civilians
were wounded.

April 10, 1996 - 1 IDF soldier is killed and 2 are wounded by Hizbullah
mortar fire.