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1) As it specifically relates to the insurgency in Iraq, is this alliance significant? Why or why not?
No, Zarqawi has always been linked to Al Qaeda. He was wounded by an American bomb in Afghanistan, and a letter sent by him and intended for Al Qaeda was intercepted last spring.
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2) Does this new request for alliance prove that Zarqawi was not associated/allied with Al Qaeda prior to the invasion of Iraq?
They have always been associated. Zarqawi has a relationship with bin Laden and other Al Qaeda heavies dating back to the Soviet occupation of Afghanistan. Zarqawi was one the "Afghan-Arabs." Zarqawi is also known to have had a working relationship with Al Qaeda when he was running several terror camps in Afghanistan at the time of the US invasion. It was at this time that he was reportedly injured in an American airstrike, and fled to Iraq for medical treatment.
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3) There is increasing evidence that Zarqawi is losing popularity in Iraq due to the civilian casualties he's inflicting. Does "re-branding" with Al Qaeda improve his status and his ability to continue the insurgency in Iraq?[/b]
I think the statement was aimed at non-Iraqi Arabs rather than Iraqis themselves. Non-Iraqi Arabs supply Zarqawi with the vast majority of his recruits. Osama bin Laden is a popular figure among fundamentalist Muslims in the Arab world, and Zarqawi is trying to tap into that popularity in order to lure more non-Iraqi Arabs into Iraq to join his cause.