Washington believes the Palestinian terror group Hamas and the Iranian-backed Lebanese terrorist militia Hizballah are looking to set up operations in Mexico with the aim of eventually infiltrating the United States, according to a former CIA counter-terrorism official.

Robert Grenier, who until recently was head of the CIA's counter-terrorism center, told a press conference in Mexico last Thursday that the Muslim terrorist organizations see the illegal immigration and drug trafficking networks in the Latin American nation as the most effective way to move people and equipment into the US.

Grenier said that the Bush Administration fears both Hamas and Hizballah may already have sleeper cells operating in Mexico.

Hamas and Hizballah have both threatened in the past to extend their war against Israel to include the United States.