Are the Saudis funding schools devoted to fomenting radical Islamic ideology? Dec. 3 — An intense behind-the-scenes diplomatic struggle over a controversial Saudi-funded academy in Germany has shed new light on the close relationship between Saudi government officials and an international network of mosques and schools—some of which, Western intelligence officials say, have become breeding grounds for terrorism. THE GERMAN SCHOOL, the King Fahd Academy in Bonn, provoked an uproar two months ago when German television reporters infiltrated its classrooms and videotaped a teacher inciting a holy war “in the name of Allah” and advocating martial-arts training—including the use of...