ALLEGED FINANCIAL LINKS BETWEEN HIZBALLAH AND

S E C R E T SECTION 01 OF 02 BEIRUT 002928

SIPDIS

SIPDIS

NSC FOR ABRAMS/DORAN/MARCHESE/HARDING

E.O. 12958: DECL: 09/11/2026
TAGS: PREL PTER KDEM EFIN LE SY IR IS
SUBJECT: ALLEGED FINANCIAL LINKS BETWEEN HIZBALLAH AND
MICHEL AOUN'S MOVEMENT

Classified By: Jeffrey Feltman, Ambassador, per 1.4 (b) and (d).


1. (U) This is an action cable -- see para 5 below.


2. (S) Media reports suggest that Michel Aoun's Free
Patriotic Movement (FPM) and Hizballah have a new area of
cooperation: financing reconstruction for the south.
Newspapers and media have carried stories and pictures that
show FPM and Hizballah members distributing cash. If, as is
rumored, FPM is distributing funds provided by Hizballah,
then FPM is culpable of dealing with terrorist financing.


3. (S) To cite only one report, An-Nahar on September 3
reported the following: "A week after the damage assessment
carried out by Hizballah and the Free Patriotic teams in some
vollages in the south such as Ain Ebel, Debel, and Rmeish,
the Jihad al-Bina organization (Hizballah's infrastructure
development body),in collaboration with the Free Patriotic
Movement, decided to pay indemnities so that families can
repair their damaged houses, the number of which is 269.
Payments were estimated at USD 257,250. Commenting on the
move, Pierre Raffou, general coordinator of the Free
Patriotic Movement, said, 'in accordance with the Memorandum
of Understanding (the February 6 MOU signed by Michel Aoun
and Hassan Nasrallah) and in support to poor people in the
South and while the state was totally absent, we worked on
implementing the first stage in these villages. Other phases
shall be completed soon with respect to assessing damages in
the agricultural and trade sectors.'"


4. (S) Aoun is obsessed with three goals -- toppling
Siniora's cabinet, destroying the March 14 majority, and
realizing his own presidential ambitions. He seems able to
justify almost any cooperation with Hizballah as helping him
succeed in those goals. We find the rumors credible that he
plans to use street action, for example, in fighting
Siniora's cabinet. While we do not have solid evidence
proving that the FPM was distributing Hizballah-provided
funds, we believe that the suggestions are strong enough to
warrant action on our part. We urge that the USG should
deliver very strong talking points to Aoun and to his U.S.
representatives warning them that they risk violating USG
laws on terrorist financing.


5. (S) Action request: We would like to be able to cite
instructions from Washington in delivering the following
demarche to Michel Aoun, and we would like the same demarche
to be delivered to FPM representatives in Washington (likely
Tony Haddad). We also would like to be able to share this
demarche with a couple of key FPM deputies, whom, we suspect,
neither agree with all of Aoun's relations with Hizballah nor
receive the straight story from him about our unhappiness
over those relations.

-- We are alarmed by recent media coverage of Free Patriotic
Movement members distributing cash alongside members of
Hizballah's Jihad al-Bina organization in south Lebanon.

-- Hizballah is a terrorist organization. Using money
provided by Hizballah or working in financial cooperation
with Hizballah or its organizations, including al-Manar, puts
the Free Patriotic Movement at risk of breaking U.S. laws on
terrorist financing. Penalties can include, inter alia, the
freezing of financial assets that pass through the United
States and can affect the ability to qualify for U.S. visas
by FPM members known to be dealing with Hizballah financing.
Being so closely associated with Hizballah can influence the
status of FPM-related organizations in the United States.

-- Especially since the February 6 signing of the Memorandum
of Understanding, we have repeatedly expressed our deep
concern regarding the FPM's relations with Hizballah. We
recognize that the FPM is not the only Lebanese organization
that has tried to use Hizballah to advance its own political
aims. But, in light of the Hizballah seizure on sovereign
Israeli territory of two Israeli soldiers, it should now be
crystal clear how untrustworthy Hizballah is as a partner.

-- The question of terrorist financing is a particularly
serious one for us. The FPM should recognize its interest in
putting distance between itself and Hizballah immediately.
We would welcome any information you can provide to refute
the media reports that the FPM has been involved in
distributing Hizballah resources and is cooperation with
Hizballah financially.


BEIRUT 00002928 002 OF 002


End action request.
FELTMAN