Identifier
Created
Classification
Origin
06BEIRUT2751
2006-08-24 16:07:00
CONFIDENTIAL
Embassy Beirut
Cable title:
LEBANON: ECONOMY MINISTER SAYS BLOCKADE IS
how-toVZCZCXRO0066 OO RUEHAG RUEHBC RUEHDE RUEHKUK DE RUEHLB #2751/01 2361607 ZNY CCCCC ZZH O 241607Z AUG 06 FM AMEMBASSY BEIRUT TO RUEHC/SECSTATE WASHDC IMMEDIATE 5233 INFO RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY RUEAIIA/CIA WASHDC PRIORITY RHEFDIA/DIA WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEHNO/USMISSION USNATO PRIORITY 0159
C O N F I D E N T I A L SECTION 01 OF 02 BEIRUT 002751
SIPDIS
SIPDIS
NSC FOR ABRAMS/DORAN/MARCHESE/HARDING
E.O. 12958: DECL: 08/24/2016
TAGS: PREL PTER LE SY
SUBJECT: LEBANON: ECONOMY MINISTER SAYS BLOCKADE IS
STIFLING RECOVERY
Classified By: Jeffrey D. Feltman, Ambassador. Reason 1.4(d).
SUMMARY
--------
C O N F I D E N T I A L SECTION 01 OF 02 BEIRUT 002751
SIPDIS
SIPDIS
NSC FOR ABRAMS/DORAN/MARCHESE/HARDING
E.O. 12958: DECL: 08/24/2016
TAGS: PREL PTER LE SY
SUBJECT: LEBANON: ECONOMY MINISTER SAYS BLOCKADE IS
STIFLING RECOVERY
Classified By: Jeffrey D. Feltman, Ambassador. Reason 1.4(d).
SUMMARY
--------------
1. (C) During an August 23 meeting with Representatives
Christopher Shays (R-CT),Al Green (D-TX),Robert Inglis
(R-SC),Brian Higgins (R-NY),Ambassador Feltman, and
staffers and poloffs, Lebanese Economy and Trade Minister
Sami Haddad (a Protestant close to March 14) said that
anti-U.S. feeling has unfortunately increased in Lebanon and
throughout the region as a result of the war with Israel.
Haddad said Lebanon's measurable economic losses are
significant, and that the economy is slow to rebound because
of the continued Israeli blockade. With a permanent
political solution, and with the hoped-for assistance of the
United States, Haddad predicts investors will start to regain
confidence and Lebanon will be able to pick up the pieces.
On monitoring of points of entry, Haddad said that he
believes there is a "political decision" to move ahead on
securing the ports, airports, and frontier with Syria. In
the end, Haddad believes Hizballah will have no choice but to
disarm and become a normal political party. END SUMMARY.
THE DAY AFTER
--------------
2. (C) Haddad, clearly not a friend of Hizballah (but not
entirely antipathetic either),said that the war had not
struck a fatal blow to the group, which is viewed by many as
the "victor" against Israel and the United States. Haddad
fears this presumed triumph will spawn greater radicalism and
fundamentalism through the Arab and Muslim world.
Anti-American feeling in Lebanon is running very high now,
said Haddad. Not only do Lebanese perceive the USG as having
prodded the Israelis into their "over-the-top reaction," they
feel the U.S. purposefully delayed the ceasefire, increasing
the suffering of the average Lebanese. Haddad said that it
will take time for the U.S. to rebuild its image in Lebanon,
but added that the Lebanese "would greatly appreciate
support, affection, and economic aid to rebuild our country."
3. (C) Haddad said the economy has suffered a devastating
blow, noting that the official GOL estimate of the
reconstruction cost is $3.6 billion, approximately 16 per
cent of Lebanon's annual GDP. There are also the
unquantifiable indirect economic losses, such as empty,
oil-stained beaches and scared investors. Haddad commented
that the economy has been slow to revive primarily because
the Israelis will not lift their blockade of the ports and
airports, adding that the USG should do all it can to get
this blockade lifted as soon as possible.
4. (C) Rep. Shays and the Ambassador asked what the GOL has
done to effectively secure its points of entry - ports,
airports, and the border with Syria - against arms smuggling.
Haddad assured the delegation that the GOL has made the
"political decision" to control the borders. He said that
during the Cabinet meeting on August 21, Hizballah ministers
did not react "outrageously" against the idea of controlling
the borders. According to Haddad, the possibility of
requesting new scanning equipment as well as support from
"German inspectors" has already been discussed during two
Cabinet meetings.
THE ROAD TO RECOVERY
--------------
5. (C) Haddad said that in order for the economy to
recover, the GOL needs to regain investor confidence in the
country, and that this would come through reaching a
comprehensive political solution disarming Hizballah and
removing the threat of attack from Israel. Describing the
Lebanese Armed Forces deployment of 15,000 troops to southern
Lebanon as "quite something," Haddad said that ultimately the
GOL must have a monopoly on the use of arms within its
territory. "Hizballah has no counter-argument for the
extension of GOL control over all its territory." A strong
UNIFIL presence would also help support the LAF in the South
and reduce the likelihood of a renewed outbreak of
hostilities with Israel. With this, Haddad predicted, the
economy will bounce back.
BEIRUT 00002751 002 OF 002
6. (C) Representatives Shays, Green, Inglis, and Higgins
did not have the opportunity to clear this cable.
FELTMAN
SIPDIS
SIPDIS
NSC FOR ABRAMS/DORAN/MARCHESE/HARDING
E.O. 12958: DECL: 08/24/2016
TAGS: PREL PTER LE SY
SUBJECT: LEBANON: ECONOMY MINISTER SAYS BLOCKADE IS
STIFLING RECOVERY
Classified By: Jeffrey D. Feltman, Ambassador. Reason 1.4(d).
SUMMARY
--------------
1. (C) During an August 23 meeting with Representatives
Christopher Shays (R-CT),Al Green (D-TX),Robert Inglis
(R-SC),Brian Higgins (R-NY),Ambassador Feltman, and
staffers and poloffs, Lebanese Economy and Trade Minister
Sami Haddad (a Protestant close to March 14) said that
anti-U.S. feeling has unfortunately increased in Lebanon and
throughout the region as a result of the war with Israel.
Haddad said Lebanon's measurable economic losses are
significant, and that the economy is slow to rebound because
of the continued Israeli blockade. With a permanent
political solution, and with the hoped-for assistance of the
United States, Haddad predicts investors will start to regain
confidence and Lebanon will be able to pick up the pieces.
On monitoring of points of entry, Haddad said that he
believes there is a "political decision" to move ahead on
securing the ports, airports, and frontier with Syria. In
the end, Haddad believes Hizballah will have no choice but to
disarm and become a normal political party. END SUMMARY.
THE DAY AFTER
--------------
2. (C) Haddad, clearly not a friend of Hizballah (but not
entirely antipathetic either),said that the war had not
struck a fatal blow to the group, which is viewed by many as
the "victor" against Israel and the United States. Haddad
fears this presumed triumph will spawn greater radicalism and
fundamentalism through the Arab and Muslim world.
Anti-American feeling in Lebanon is running very high now,
said Haddad. Not only do Lebanese perceive the USG as having
prodded the Israelis into their "over-the-top reaction," they
feel the U.S. purposefully delayed the ceasefire, increasing
the suffering of the average Lebanese. Haddad said that it
will take time for the U.S. to rebuild its image in Lebanon,
but added that the Lebanese "would greatly appreciate
support, affection, and economic aid to rebuild our country."
3. (C) Haddad said the economy has suffered a devastating
blow, noting that the official GOL estimate of the
reconstruction cost is $3.6 billion, approximately 16 per
cent of Lebanon's annual GDP. There are also the
unquantifiable indirect economic losses, such as empty,
oil-stained beaches and scared investors. Haddad commented
that the economy has been slow to revive primarily because
the Israelis will not lift their blockade of the ports and
airports, adding that the USG should do all it can to get
this blockade lifted as soon as possible.
4. (C) Rep. Shays and the Ambassador asked what the GOL has
done to effectively secure its points of entry - ports,
airports, and the border with Syria - against arms smuggling.
Haddad assured the delegation that the GOL has made the
"political decision" to control the borders. He said that
during the Cabinet meeting on August 21, Hizballah ministers
did not react "outrageously" against the idea of controlling
the borders. According to Haddad, the possibility of
requesting new scanning equipment as well as support from
"German inspectors" has already been discussed during two
Cabinet meetings.
THE ROAD TO RECOVERY
--------------
5. (C) Haddad said that in order for the economy to
recover, the GOL needs to regain investor confidence in the
country, and that this would come through reaching a
comprehensive political solution disarming Hizballah and
removing the threat of attack from Israel. Describing the
Lebanese Armed Forces deployment of 15,000 troops to southern
Lebanon as "quite something," Haddad said that ultimately the
GOL must have a monopoly on the use of arms within its
territory. "Hizballah has no counter-argument for the
extension of GOL control over all its territory." A strong
UNIFIL presence would also help support the LAF in the South
and reduce the likelihood of a renewed outbreak of
hostilities with Israel. With this, Haddad predicted, the
economy will bounce back.
BEIRUT 00002751 002 OF 002
6. (C) Representatives Shays, Green, Inglis, and Higgins
did not have the opportunity to clear this cable.
FELTMAN