According to the Sunday Times, the government of Qatar—home of Al Jazeera—is paying protection money to Islamic terrorists. (Hat tip: Scaramouche.)

THE government of Qatar is paying millions of pounds a year to Al-Qaeda in return for an undertaking to spare it from further terrorist attacks, official sources in the wealthy Gulf state claimed last week.

The money, paid to spiritual leaders sympathetic to Al-Qaeda, is believed to be helping to fund its activities in Iraq. In a recent message broadcast via the internet, Osama Bin Laden told followers that operations in Iraq were costing Al-Qaeda more than �500,000 a month.

The sources said a deal between Qatar and Al-Qaeda was first made before the 2003 invasion of Iraq amid fears that the oil state, a close ally of Washington, could become a terrorist target. The US Central Command for the invasion was based in Qatar.

A senior government source said that the agreement was renewed in March after an Egyptian suicide bomber — thought to be associated with Al-Qaeda — struck a theatre in Doha, Qatar’s capital, killing a British teacher during a performance of Twelfth Night.

“We’re not sure that the attack was carried out by Al-Qaeda, but we ratified our agreement just to be on the safe side,” said a Qatari official. “We are a soft target and prefer to pay to secure our national and economical interests. We are not the only ones doing so.”

Qatar is one of the richest Gulf states and many of its 840,000 inhabitants have a high standard of living. It is also an important base for business.