AN al-Qaeda 'director' who came to Manchester following an aborted mission abroad talked of martyrdom and reserving his place in paradise, a court heard.

And a North Manchester taxi driver enlisted to help him joked about conning people into inadvertently funding terrorism by hosting a £30-a-head fundraiser purporting to be an earthquake relief fund, it was alleged.

The conversations were overheard by police who were investigating what the prosecution have described as a terrorist's 'active service cell' which met up in Dubai and Manchester in 2005 and 2006.

In one conversation, Rochdale-born Rangzieb Ahmed, who has been described as a 'director' of terrorism for al-Qaeda, talked about never coming back to England once he left, the court heard.

He also spoke of his fears of being recognised in Manchester because he was well known as a result of previously being held in prison in India, said Mr Andrew Edis, prosecuting.

Mr Edis said the conversation then moved on to the conditions for those held on suspicion of terrorist offences in the UK before Rangzieb Ahmed said to taxi driver Habib Ahmed that they would meet 'on earth if they are alive, or in paradise'.

" 'If you are martyred first, then make a recommendation for me'," Mr Edis said, reading from a transcript of the conversation.

In an earlier conversation between the two, when they met up in Dubai, dad-of-two Habib Ahmed talked about the difficulties of fundraising for terrorism, saying people didn't give as much money as before, the court heard.

Party

Mr Edis said: "Habib says he is going to have a party when he gets back - to invite 26 people and charge them £30 to £40."

He added: "They were obviously planning to raise money for terrorism by pretending it is for the earthquake and by charging people £30-£40 a head to be fed two samosas."

Manchester Crown Court heard the conversations suggested the pair were comparing notes on what they did during terrorism training in Pakistan.

Another conversation between Rangzieb and another man in Manchester called Malik alluded to terrorism, it was alleged.

Mr Edis said: "They say the Americans have killed more than half of the leadership and talk about missile attacks in Pakistan."

He said the pair referred to the 'big ones' having been martyred.

"They blame the Jews and say they had Yasin killed as well," said Mr Edis.

He said this could be a reference to a man killed by the Israelis in 2004 and that the conversation took place a day after another prominent member of al-Qaeda had been killed.

The conversations also made reference to the use of satellite phones and the way they could be used to locate terrorists and send missiles, the court heard.

Rangzieb Ahmed and Habib Ahmed are both charged with membership of al-Qaeda between January 1, 2002 and September 1, 2006 and possession of three books linked with terrorism between April 22, 2004 and April 12, 2006.

Rangzieb Ahmed, 33, of Barnston Avenue, Fallowfield, is further charged with directing terrorism between April 22, 2004, and August 24, 2006, and possession of a rucksack containing traces of explosives between April 22, 2004, and January 17, 2006.

Habib Ahmed, 28, from Cheetham Hill, faces additional charges of possession of information for terrorist purposes contained in books between April 13, 2006, and August 24, 2006, and electronic records connected with terrorism on August 23, 2006.

He is also charged with attending a terrorist training camp in Pakistan between April 23, 2006, and June 27, 2006.

Mehreen Haji, 27, from Cheetham Hill, is charged with two counts of funding terrorism to the tune of £2,005 on May 11, 2006, and £1,991 on May 12, 2006, which was given to Habib Ahmed. They deny the charges.

Proceeding