Identifier
Created
Classification
Origin
06BEIRUT1748
2006-06-02 13:30:00
SECRET//NOFORN
Embassy Beirut
Cable title:  

MGLE01: C/CT5/015376 -- STUDY SHOWS IRANIAN AID

Tags:  EFIN IR LE PGOV PTER SY 
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P 021330Z JUN 06
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC PRIORITY 3805
INFO RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY
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S E C R E T SECTION 01 OF 02 BEIRUT 001748 

SIPDIS

NOFORN
SIPDIS

NSC FOR ABRAMS/DORAN/WERNER/SINGH

E.O. 12958: DECL: 05/24/2016
TAGS: EFIN IR LE PGOV PTER SY
SUBJECT: MGLE01: C/CT5/015376 -- STUDY SHOWS IRANIAN AID
TO HIZBALLAH ON THE RISE

REF: 05 BEIRUT 1181

Classified By: Ambassador Jeffrey D. Feltman. Reason: Section 1.4 (d)
.

SUMMARY
--------

S E C R E T SECTION 01 OF 02 BEIRUT 001748

SIPDIS

NOFORN
SIPDIS

NSC FOR ABRAMS/DORAN/WERNER/SINGH

E.O. 12958: DECL: 05/24/2016
TAGS: EFIN IR LE PGOV PTER SY
SUBJECT: MGLE01: C/CT5/015376 -- STUDY SHOWS IRANIAN AID
TO HIZBALLAH ON THE RISE

REF: 05 BEIRUT 1181

Classified By: Ambassador Jeffrey D. Feltman. Reason: Section 1.4 (d)
.

SUMMARY
--------------


1. (S/NF) On May 31, independent Shia politician Ahmad
al-Asad told econoff that Hizballah has increased the number
of paid employees, including civilian and military, by 23
percent since last year. This increase was financed by a 37
percent increase in Iranian funding since the Syrian
withdrawal. Hizballah has also used the increased funding to
pay its employees comfortable salaries, lay phone and cable
wire throughout the south, and build a series of new fixed
positions along the Blue Line (which Israel bombed on May
28). Al-Asad believes Iran and Syria are biding their time
until the end of the current U.S. administration,
strengthening Hizballah in the interim. He said the money
flow from Iran must be stopped or else matched by the USG if
Hizballah's influence is to be stemmed. End summary.

STUDY: HIZBALLAH INCREASES PAYROLL
AS IRAN INCREASES AID BY A THIRD
--------------


2. (S/NF) On May 31, econoff met with independent Shia
politician Ahmad Al-Asad, whose movement conducted a survey
of Hizballah's size and budget last year (reftel). Al-Asad
said that a new survey revealed that Hizballah's size and
budget had grown substantially since the Syrian withdrawal
from Lebanon in April 2005. The survey samples the numbers
of known Hizballah employees in different sized villages
throughout the south and parts of the Biqa Valley. Those
head counts are then used to extrapolate the number of
Hizballah paid employees, including both civilians and
militiamen, for all of Lebanon. Last year, Al-Asad estimated
there were 30,000 paid civilian and militia employees in
Hizballah (reftel). This year his survey estimated 37,000
Hizballah employees, including the 3,000 to 5,000 fighters he
believes are in Hizballah's military wing. This is an
increase of approximately 23 percent. Al-Asad commented that

it is no wonder Hizballah can almost instantly draw a crowd
of 200,000 for protests. Hizballah could rally that number
using only paid employees and their extended families, not to
mention many more volunteers, supporters, and sympathizers.


3. (S/NF) Al-Asad explained that the increase in
Hizballah's payroll is the result of a large increase in
Iranian funding for Hizballah. His survey estimated that
Iran now gives Hizballah USD 55 million a month (USD 660
million a year),an increase of 37 percent over his estimate
last year of USD 40 million a month (USD 480 million a year).
Although these figures were an estimate, Al-Asad said that
the increase in Iranian funding could be seen qualitatively
on the ground in the south. First, Hizballah middle-ranking
and senior members were living obviously comfortable lives,
with nice houses and cars. This comfort, thought not wealth,
was a result of the good salaries Hizballah was paying its
people in addition to the health care and education benefits
they receive. Second, Hizballah has been laying phone lines
and cable throughout the south. This is done in plain view
of the local authorities who do nothing to prevent it.
Al-Asad was not sure of the purpose of this communications
work, but said it was large-scale. Third, Hizballah had
built a series of fixed positions all along the Blue Line in
the past six months. (Note: Most of those new Hizballah
positions now lay in ruins due to intense Israeli bombardment
on May 28. End note.)


4. (C) Al-Asad also mentioned that Speaker of Parliament
and Amal Movement leader Nabih Berri was receiving money from
Iran. He estimated that Berri receives USD 16-18 million a
year. Berri uses the Iranian money partially to pay off his
supporters, but he pockets much of the rest. (Note:
Al-Asad's estimate of Iran's stipend to Berri is
significantly higher than other estimates which suggest a
figure more like a few million dollars a year. End note.)

IRAN AND SYRIA: TIME
IS ON THEIR SIDE
--------------


5. (C) Al-Asad commented that Iran and Syria are biding
their time in Lebanon. Damascus and Tehran are trying to

BEIRUT 00001748 002 OF 002


outwait the current U.S. administration in order to regain
control over Lebanon. In the meantime, Iran is building up
Hizballah even at the expense of its own people, according to
Al-Asad. He compared the Iran-Hizballah relationship to that
of the Soviet Union and Cuba during the Cold War. Moscow so
desperately wanted Cuba to succeed that it shipped massive
amounts of aid to the island even as its own people were
standing in long lines at the supermarket. It is the same
for Iran, which, according to Al-Asad, is sending more than a
half billion dollars to Hizballah per year even as many of
its own people live in grinding poverty. He explained that
Lebanon was the only place that Iran successfully exported
elements of its revolution, so it will devote considerable
resources to keeping Hizballah viable.


6. (C) Al-Asad then provided his solution to the situation.
In order to confront Hizballah, one must cut off the Iranian
money. Al-Asad wanted to accomplish this with international
sanctions on Iran and U.S. airstrikes on Syria. "If Iranian
aid cannot flow through Syria, where will it come
through...Israel?" If the USG cannot stop the flow of
Iranian aid, then it must match it dollar for dollar, Al-Asad
concluded.

COMMENT
--------------


7. (C) It is difficult to confirm Al-Asad's figures, but
anecdotally, at least, many observers believe Iran stepped up
its aid to Hizballah following the Syrian withdrawal.
Al-Asad is our only contact to try to quantify it. Al-Asad
has reported reliably on Shia affairs in the past. End
comment.
FELTMAN