By Patricia Hurtado in New York
May 9 2003, http://www.smh.com.au/

A United States federal judge has ruled that Iraq provided material support to Osama bin Laden and his terrorist group al-Qaeda for the September 11, 2001, attack and is liable to pay $US104 million ($163 million) in damages to two victims' families.

The ruling, by Manhattan District Judge Harold Baer, is the first court decision stemming from the September 11 terrorist attacks.

The families of George Eric Smith, 38, and Timothy Soulas, 35, filed separate lawsuits based on the theory that Iraq had helped bin Laden carry out the attack.

Similar suits have been filed relating to the attacks, but this was the first to reach the damages phase.

In March Judge Baer was the first judge to hold a hearing to determine damages after making a default judgement in January against the Taliban, the Islamic Emirate of Afghanistan, al-Qaeda, bin Laden, Saddam Hussein and the Republic of Iraq.

He made the finding after public announcements regarding the lawsuits in newspapers in Afghanistan and Iraq failed to draw any response from any defendants.

During the two-day hearing lawyers for the two families presented evidence that established a "conclusive link" between Saddam's Iraq and bin Laden's terrorist army.

The evidence included slides and declassified interviews with Iraqi military leaders who defected. They told a television news program that Saddam had a jet parked in a remote area of Iraq that, they claimed, was used to train hijackers. Evidence also featured the testimony of a former CIA director, James Woolsey.

"I conclude that the plaintiffs have shown, albeit barely, by evidence satisfactory to the court that Iraq provided material support to bin Laden and al-Qaeda," Judge Baer wrote.

He ruled that Mr Smith, who worked on the 97th floor of the World Trade Centre's south tower, presumably died while descending the stairs as the second hijacked aircraft hit the tower.

Mr Soulas, who worked in the north tower, survived the impact of the first aircraft's crash, Judge Baer wrote. Minutes later Mr Soulas phoned a client and told him that the exits were blocked and they were "doomed".

The plaintiffs' lawyer, James Beasley, has said he is seeking Iraqi and bin Laden assets seized by the US Government.

Newsday