LCCC NEWS BULLETIN
APRIL 6/2006

Below news from the Daily Star for 6/06
Maronite Church blasts Lebanon's ruling class
Serenity returns as Lebanese Cabinet talks reform
Lebanese judiciary tackles Syrian subpoenas leak
Shebaa Farms: light at the end of the tunnel?
PSP takes swipe at Hizbullah
MP: Syria must free Lebanese detainees or face World Court
Presidential wrangling spurs multiple scenarios
Three brothers of Lebanese origin brutally slain in Venezuela
Lebanese cement makers profit from regional boom - but for how long?
Storms batter Lebanon's infrastructure
Time Out launches in Beirut
Fatwa against statues triggers uproar in Egypt-AFP
Can Hariri keep juggling clashing agendas? -By Michael Young
Israel gives cold shoulder to Hamas overture

Below news from miscellaneous sources for 6/06
Lebanon must overcome crisis, say Maronite bishops-AsiaNews.it

Maronite Bishops Blame Ruling Regime for Crippled Situation-Naharnet
Three Kidnapped Canadian Brothers of Lebanese Origin Found Murdered in Venezuela-Naharnet
Sfeir: Lahoud Has Linked his Fate with Syria-Naharnet
Iranian spies working Lebanon-Israel border-International Christian Embassy Jerusalem -
Syria hounds foes: Lebanon minister-Gulf Times
Syria Draws Fire Over Rights Activists-The Kindred Times
10 people killed, more than 40 hurt in Syrian road accidents-Khaleej Times
Push for reform stalls in Lebanon-Columbus Ledger-Enquirer
Government to Debate Economic Reform Ahead of Donor Conference
Saudi Arabia Offers to Mediate Between Lebanon and Syria-Naharnet

Maronite Church blasts Lebanon's ruling class
By Nada Bakri -Daily Star staff-Thursday, April 06, 2006
BEIRUT: The Maronite Church accused Lebanon's ruling class on Wednesday of neglecting the country's interests and slammed "inefficient" governmental and legislative institutions.
This outcry by the Maronite Bishops' Council follows recent remarks by the highest Maronite figure, Patriarch Nasrallah Butros Sfeir, who criticized President Emile Lahoud, saying he is incapable of holding the country's top post.
"The ongoing political spat among the ruling class between Khartoum and Lebanon, Parliament and Cabinet, is spreading despair among the Lebanese ... while the main task of the leaders is to work on reducing the people's burdens," the statement by the bishops said. The statement slammed the political leaders' ongoing national dialogue, which is aimed at resolving Lebanon's worst political crisis since the end of the Civil War.
"The politicians' national talks, which are at times stumbling upon insurmountable obstacles and at times slowly reaching agreements, would not have been necessary had the governmental and legislative institutions been efficient," it said.
The bishops, who issue statements monthly, also criticized the leaders' failure to address economic situation in the country, echoing the complaints of the public.
"The governing system in Lebanon seems inept ... and the country's interests are not sought after and employers and employees are complaining about the economic situation."
Anti-Syrian politicians - acknowledging some of the statement's accurate points - blamed the political and economic situation in the country on Lahoud's continued presence in office and Syria's attempts to derail any inter-Lebanese solution.
Earlier this week, Sfeir had told French magazine Le Point that Lahoud is no longer able to fulfill his duties as a president and has tied his "fate with the Syrians."
Sfeir also said it is unlikely that the former army commander would succumb to the public pressure to resign.
Sfeir has in recent months joined the anti-Syrian coalition's calls to topple Lahoud, who they consider the last vestige of Syria's domination over Lebanon.
"The economic situation is very critical and the Maronite Church has accurately portrayed that in its statement," Future Movement MP Mohammad Qabbani told The Daily Star.
"Lahoud is responsible for this situation and if he remains in office until the end of his term, this will only worsen the case," he added.
Commenting on Sfeir's statement about Lahoud, Qabbani said: "Sfeir's blunt comments fortify our campaign against the president."
Amal Movement leader and Speaker Nabih Berri, who is sponsoring the national dialogue, has repeatedly said he stands behind the Patriarch on the presidential issue.
Qabbani said Berri is now expected to translate his position into concrete actions.
"It is not enough to say we are behind the prelate in the presidential issue. The Amal movement needs to translate its position into concrete actions," Qabbani said.
Amal movement MP Ali Bazzi reiterated his party's stance on the issue but refrained from clarifying whether Berri would join the efforts to oust Lahoud.
"We stand behind the patriarch on this issue and we will adopt any decision he will make ... but we are not in a position to overstep the boundaries he has set," Bazzi told The Daily Star.
The national dialogue has set April 28 as the deadline to decide the fate of Lahoud. However, there is a new-found conviction among some members of the anti-Syrian ruling class that Lahoud is more likely to serve till the end of his term, on September 2007. "Until now we have not agreed on our strategy but the measures we are considering are all drastic," Progressive Socialist Party MP Wael Bou Faour told The Daily Star. Bou Faour said that there is a firm Syrian decision to derail any Lebanese-Lebanese settlement and hence disrupt the national dialogue.  "The question of replacing Lahoud depends on Damascus and the Syrians are asking for a heavy price in return for that from the West and mainly the Americans, who are not ready to pay it," Bou Faour added.

Serenity returns as Lebanese Cabinet talks reform
By Majdoline Hatoum and Nafez Qawas -Daily Star staff
Thursday, April 06, 2006
BEIRUT: Lebanon's Cabinet decided to gradually discuss the country's controversial economic reform program on Wednesday, in a quiet session that contrasted starkly with last week's clash between President Emile Lahoud and March 14 ministers. Speaking after the meeting, Information Minister Ghazi Aridi said the Cabinet would be discussing the suggested reforms "detail by detail" during extraordinary sessions every week until a consensus is reached by the country's political and economic leaders over the reform blueprint. This step could mean a possible postponement of the "Beirut I" conference - an anticipated international donor gathering to help Lebanon out of its economic and political crises - which had been expected to take place around May.  But when asked about a possible delay by The Daily Star, Premier Fouad Siniora said preparations for the conference were "going smoothly."
The premier refused, however, to say whether the detailed discussion of the reform blueprint could force the conference to be put off. An international conference grouping Lebanon, the European Union, the United States, the United Nations, the International Monetary Fund and Arab countries was to have been held in Beirut by the end of last year but was postponed because of the country's continuing political crisis.Siniora said that the first extraordinary session to discuss the reform blueprint would take place next Tuesday, with the most debatable issues - social security and the status of Electricite Du Liban - to be on the agenda. He added that three or four extraordinary sessions could be held before reaching an agreement on the various issues.The proposed reforms - which have drawn heavy criticism because they contain direct and indirect tax increases - were discussed broadly during the session, but Aridi said both Siniora and Finance Minister Jihad Azour insisted that the current plan was "subject to alteration."Azour - who called the reform program a "passport for the Beirut I conference" - said the plan was formulated in a way that allows the Lebanese economy to "stand on its feet again." He added that proposal's main elements would be fully and gradually discussed in the Cabinet. "The first chapter of the program is to achieve economic growth of at least a 5 percent in the upcoming stage," Azour told Lebanese Broadcasting Corp. "The second is providing social welfare to citizens who are not socially covered; the third is dealing with the economic problems burdening the citizens."
He added that tax increases proposed by the blueprint, which have been harshly criticized by business and labor alike, would be subject to discussion.
"I don't want to raise taxes, but at the same time we need to lower public expenditure and I have suggestions on how to do that," Azour said, adding that if the chronic problems and corruption facing EDL were dealt with, Lebanon would not need to raise any tax for four years. EDL has been financially dependent on the Treasury for the past 10 years due to continuing problems of mismanagement, corruption and high prices for fuel oil. The finance minister warned that for the reform program to be efficient, a serious political decision would have to be made. "There needs to be a consensus over the need for this reform program by all political leaderships," he argued. "Otherwise Lebanon will not be able to reinforce its economy."
Health Minister Mohammed Khalife criticized the reform program on his way into the session, describing the document as "very vague." "The only thing that is clear in this program is the tax raises," he complained. Khalife also said that the program was not final, and that there would be thorough discussions over several Cabinet sessions in order to make necessary amendments. Sources close to President Emile Lahoud said the president was ready to discuss reforms with a "very open mind." "He is dealing with it very positively," the sources said, adding that the president wants to discuss the program in a pragmatic manner.
But the sources added that the president was concerned about criticism targeting the program, and said Lahoud would listen to all the ministers' points of view on the issue. One of Hizbullah's two men in Cabinet, Energy and Water Minister Mohammed Fneish, said the program had both positive and negative aspects. The planned reforms have remained dormant since November 2000, when international donors pledged $4.4 billion in aid to support fiscal adjustment and economic development projects. In turn, Lebanon committed itself to fiscal reforms and to privatizing the telecommunications, electricity and civil aviation sectors. But the political rift between Lahoud and the late Premier Rafik Hariri had stalled implementation of the reforms. Lebanon's economy is reeling under a $38-billion debt, equivalent to 180 percent of its Gross Domestic Product. In addition, its GDP growth was almost nil last year, after a 5 percent surge in 2004.

Lebanese judiciary tackles Syrian subpoenas leak
By Raed El Rafei -Daily Star staff-Thursday, April 06, 2006
BEIRUT: The judiciary has opened an investigation into the public disclosure of Syrian subpoenas issued against Lebanese political and media figures, according to judicial sources. The sources said that the judiciary decided to return the subpoenas to Syrian authorities instead of summoning the defendants as the legal documents had reached Lebanese officials after the trial in question had been held in Syria. The subpoenas had been issued by a Syrian penal tribunal and requested the appearance in court of MP Walid Jumblatt, Telecommunications Minister Marwan Hamade and journalist Fares Khashan, according to comments made by Hamade Monday. The Syrian judiciary said a lawsuit had been filed by Syrian intellectuals and lawyers against Jumblatt and Hamade for "threatening Syria's security, stability and sovereignty" through declarations made, and against Khashan for writing "provocative" articles against Syria. The sources said officials in the judiciary were irritated that the issue had been leaked to the media as they had intended to keep the matter quiet. However, the sources added that the judiciary would be faced with a dilemma should other subpoenas arrive from Syria as the two countries have signed agreements concerning such legal matters and would therefore be forced to respond.Under the same agreements, the sources noted, Lebanon could also request that Syria's judiciary forward all relevant information on the charges and allow their Lebanese counterparts to conduct their own investigations, after which Lebanon's judiciary would dismiss the charges based on Jumblatt and Hamade's parliamentary immunity.Hamade said Monday that he would present the warrants to the UN commission investigating the murder of former Premier Rafik Hariri.

Shebaa Farms: light at the end of the tunnel?
Damascus is key to movement on disputed land
By Rym Ghazal -Daily Star staff-Thursday, April 06, 2006
BEIRUT: With the announcement that "Shebaa Farms are Lebanese" Lebanon witnessed the first step forward on one of its lingering national disputes, namely the identity of a 200-square-kilometer bloc of land situated between Syria, Lebanon and Israel. The announcement, which was touted as being based on "full unanimity and consensus," was made last month by Speaker Nabih Berri at the conclusion of the second round of a national dialogue. The dialogue, which is taking place among Lebanon's top leaders, is an attempt to reach agreement on major "national issues." One such issue was the identity of the Shebaa Farms, an area located south of Shebaa, a small Lebanese village on the western slopes of Mount Hermon. The territory has been the subject of heated debate as its identity is directly linked to Hizbullah's existence and its weapons.
That's all in the past now, according to analysts who called the announcement a "historical decision" that finally granted the Farms a defined identity. "It's the first time Lebanese politicians have agreed on [Shebaa Farms'] identity," said Shafik Masri, an international law expert. Masri contributed to a draft to be submitted by Prime Minister Fouad Siniora to the UN to request that the world body change the territory's identity from "Syrian to Lebanese occupied lands."
The Farms are the last post held by Israel after its withdrawal from Lebanon in 2000.
At the time, UN cartographers said Shebaa Farms fell inside Syrian territory seized by Israel during the 1967 war. Accordingly, the UN said that Resolution 425, which called on Israel to pull out of Lebanon, had been fully implemented. But in light of the recent declaration that the Shebaa Farms are Lebanese, Israeli and Lebanese officials are expecting the UN to revisit 425 and call on the Jewish state to withdraw from the area. A spokesperson from the UN headquarters in New York told The Daily Star that "regardless of whether they are Syrian or Lebanese," Israel must withdraw from the Farms.
"The position of the UN Security Council and Secretary General Kofi Annan has been the same and persistent in demanding Israel's withdrawal from all occupied lands in accordance with various UN resolutions," the spokesperson said. "We shall have to see now what Israel will do in light of the latest developments." While the UN has assigned special envoy Terje Roed-Larsen to follow-up on Lebanon and Syria's implementation of Resolution 1559, which among other items calls for the disarmament of Hizbullah, no such envoy has been assigned to ensure Israel's implementation of 425.
Roed-Larsen has crisscrossed the globe since 1559 was issued in late 2004, holding top-level meetings with world leaders concerning the resolution.
The region may witness Israel's response even sooner than expected, Masri explained, because in addition to a new impetus given the issue by the Lebanese announcement, "international law validates that the Farms are Lebanese and the land in question was not vacant when Israel occupied it."
He added: "The identity of a location is judged based on the legal status of its inhabitants, and in this case they have documents and records issued by the Lebanese government, and taxes are paid to Lebanon. "With or without official recognition from Syria, I believe Lebanon - equipped with the united political decision and international law - should be able to convince the UN to change its mind over the long overdue mistaken identity of the Farms."
However, during a recent visit by Roed-Larsen to Lebanon, the envoy said Lebanon and Syria must cooperate to resolve a broader border dispute between the two countries, particularly over the disputed Shebaa Farms area, in order for normal diplomatic relations to be resumed between the two countries. An agreement cannot be made by the UN. It can only be done by two sovereign states," Roed-Larsen told The Daily Star at the time.
In response, Syria's Foreign Minister Walid Moallem criticized Roed-Larsen's call on Syria to cooperate with Lebanon regarding their common border. "For now, the Shebaa Farms are neither Lebanese nor Syrian because they are occupied. If Roed-Larsen wants to do something good, he should get Israel to withdraw and then there would be no problem," Moallem said at the time. "We have said that the Shebaa Farms are Lebanese," the minister added. "Roed-Larsen is the one who said that they are Syrian. Lebanon should correct his information." Officials close to Prime Minister Fouad Siniora confirmed that he is planning a trip to Syria regarding the farms, during which he is expected to ask Syria to provide the UN with written confirmation of Lebanon's sovereignty over the farms. The dispute over Shebaa Farms can be traced back to a failure by the French mandate government to properly demarcate the border between Lebanon and Syria during the 1920s. However, the question of borders wasn't given much attention by the Lebanese government even after the 1967 and 1973 wars. It appears to have arisen only as a result of the Israeli withdrawal in 2000.

PSP takes swipe at Hizbullah
Daily Star staff-Thursday, April 06, 2006
BEIRUT: Progressive Socialist Party spokesman Rami Rayes lashed out at Hizbullah on Wednesday, mocking the resistance group's ties to Iran and demanding that it respond to allegations that it allowed Iranian forces to establish fortifications along the Israeli border with South Lebanon. "The Persian choir's daily attacks against the party and its president, MP Walid Jumblatt, reflect how this choir has never learned anything from the Persian civilization, which was characterized by culture, dialogue and civility," Rayes told a local television station. He asked Hizbullah to clarify its positions regarding the information published in the British newspaper The Daily Telegraph, which said that "Iran spent millions of dollars to support Hizbullah in building a network of surveillance posts along the Lebanese-Israeli borders and to establish an intelligence network in South Lebanon." The spokesman also accused Hizbullah of making daily accusations that "hamper the positive atmosphere of the national dialogue." He said Hizbullah officials were "carrying out psychological analysis based on outdated illusions."
He added that the political situation was "difficult and very delicate." - The Daily Star

MP: Syria must free Lebanese detainees or face World Court
Daily Star staff-Thursday, April 06, 2006
BEIRUT: Reform and Change bloc MP Ghassan Mokheiber told a Saudi based website that Syria may be brought before the International Criminal Court if it fails to release the Lebanese detainees held in its prisons. "Syrian authorities have not shown any serious cooperation with the families of the detainees or with the Lebanese-Syrian joint committee" tasked with resolving the issue, Mokheiber said in an interview with Elaph on Wednesday. "The issue of the detainees should be discussed by the Lebanese and Syrian governments," the MP said, adding that tense relations should not prevent the two countries from resolving the matter. Mokheiber also expressed his parliamentary bloc's support for Free Patriotic Movement leader MP Michel Aoun's presidential ambitions. He said he could not understand "why some politicians have reservations" regarding Aoun's candidacy, adding that it was important to establish Christian unity and Christian-Islamic unity to build a modern country. "The presidential crisis can only be resolved through the president's resignation or by a two-thirds vote in Parliament on a new constitutional law to cancels the former law," he said. "But this issue requires the approval of all Lebanese."He added: "If we are not able to resolve the presidential crisis, then Lahoud will stay in his post and everyone will be forced to cope with his presence." Asked about a meeting on Monday between Aoun and Lebanese Forces leader Samir Geagea, the MP said his bloc was attempting to "mediate between all the Lebanese parties and ease disputes and tension."He said that he hoped Syria and Lebanon would "turn a new page" in their bilateral relations. - The Daily Star

Presidential wrangling spurs multiple scenarios
By Philip Abi akl -Daily Star- Thursday, April 06, 2006
Instead of tackling the presidential crisis during Monday's national dialogue session, participants discussed current developments in the local arena because some parties were not ready to announce their candidates for the presidency. According to one dialogue participant, MP Elias Skaff raised the issue by expressing his support for MP Michel Aoun's candidacy and then asked other participants to name their candidates, which embarrassed the leaders of the majority because they were not ready to discuss the issue. While MP Ghassan Tueni said the presidential crisis should be resolved as soon as possible, Lebanese Forces leader Samir Geagea proposed postponing the issue until the end of April to give the majority time to agree on a single candidate.
Before the session began, MP George Adwan announced that the LF had submitted a list of five presidential candidates - including Aoun - to Maronite Patriarch Nasrallah Butros Sfeir. However, Adwan refused to reveal the names of the other four candidates. Politicians who have visited Sfeir recently say the prelate does not want to name a specific candidate, but has said that the next president should be "competent, independent and honest," and that he must be approved by all parties. Meanwhile, members of the parliamentary majority admit that the present political climate is not to their liking, and that they may be forced to forge new alliances in order to regain their leading role. Realizing this fact, MP Walid Jumblatt has come up with a new plan.
In an attempt to forge a true majority built on a foundation of himself and majority leader Saad Hariri, the Druze leader is wooing Aoun in hopes the former general will come over to the March 14 Forces. Aoun will then be asked to help bring onboard Hizbullah's secretary-general, Sayyed Hassan Nasrallah, who has already expressed his support for Aoun as president. The reason for such a monumental shift is that Jumblatt believes the current Christian members of the March 14 camp will never represent a majority of their community.
However, other March 14 members said that should the coalition fail to place its candidate in Baabda, it should support Emile Lahoud's remaining in office until the end of his term. Sources close to Hizbullah say the party is holding firm in its support for Aoun. Another participant in the dialogue said that the parliamentary majority should take a final stand regarding the presidency and forge political alliances that would ease sectarian differences. In this context, Hariri and Nasrallah are trying to reach an agreement. A third politician said the statements made by Sfeir during an interview with Le Point represented a step toward pressuring Lahoud to resign. The coming weeks may witness a series of backstage discussions and local and international talks to find the adequate mechanism to put an end to the presidential crisis.

Three brothers of Lebanese origin brutally slain in Venezuela
Boys were kidnapped at bogus police checkpoint
Thursday, April 06, 2006-
BEIRUT: The bodies of three Canadian brothers of Lebanese origin, who were kidnapped on February 23 along with their driver, were found bullet-ridden in Yare, southwest of Caracas, Venezuela Tuesday, shocking relatives and friends. The bodies of 17-year-old John Faddoul, along with his brothers Kevin, 13, and Jason, 12, were found Tuesday afternoon near an electrical tower in Yare, about 50 kilometers west of Caracas more than a month after they were kidnapped at a bogus police checkpoint on their way to school said Venezuelan Interior and Justice Minister Jesse Chacon.
The boys' parents were both born in Lebanon, and their father John Faddoul, is a naturalized Canadian who has been a businessman in Venezuela for more than 20 years.
The body of the boy's driver, 30-year-old Miguel Ribas, was also found with boys, Chacon said. "We lament, despite the efforts that were made 24 hours a day since this started, we have not been able to prevent this abominable homicide," Chacon said. "Not only does the Faddoul family mourn this incident, all Venezuelans mourn it," he said. "We're talking about three boys ... who died at the hands of people that can barely be called human beings," added Chacon calling for Venezuelans to refrain from turning the tragedy into a political issue and instead unite against violent crime.
The victims were found with gunshot wounds in the head and neck. Two were still clad in their school-uniform beige shirts, judicial police chief Marco Chavez said on state television. Relatives have identified the bodies, but forensics were completing DNA tests Wednesday.
Dozens of classmates of the Faddoul brothers, some with black ribbons tied on their wrists, broke down crying after a Mass Wednesday at their Catholic school. "This hurts a lot. We loved them so much," said classmate Fadi Rahal, a 16-year-old who, like the three brothers, is of Lebanese descent. Cars carrying slogans on their windows from recent protests sparked by the kidnappings still dotted the neighborhood.
"We sincerely regret this great tragedy and send our deepest condolences to the families of the victims," said a Canadian Foreign Affairs spokesperson in Ottawa to The Daily Star. "We are in touch with the family as the investigation continues, whereby the Venezuelan authorities promised not to leave a single stone unturned in this investigation," said the spokesperson, who wouldn't release any personal information about the families due to Canada's "Privacy Act."
According to media reports from Venezuela, authorities have not ruled out the possibility that the kidnappers could in fact be police officers. Officials were reported to have said the kidnappers demanded more than $4.5 million. The family's lawyer, Santiago Georges, said that the family was not able to pay the sum demanded by the kidnappers. It was not the family's first encounter with kidnappings. The father and eldest son, John, were said to have been "express kidnapped" a few years ago by men who drove them to a cash machine and later released them, said Nelly Elbarche, a cousin of the boys' mother. "They grabbed them practically in the same place," Elbarche said. Following that incident, the community hired a security guard, who would often ride up and down the hill on a motorcycle, she added. The killings come just days after a prominent Italian-born businessman, 74-year-old Filippo Sindoni, was abducted and killed.  Violent robberies, kidnappings and murders are frequent in Venezuela. There were 9,402 homicides reported in 2005.- With agencies, additional reporting by Rym Ghazal

Lebanese cement makers profit from regional boom - but for how long?
Local consumption is flat, and export markets are getting tougher
By Lysandra Ohrstrom -Special to The Daily Star
Thursday, April 06, 2006
BEIRUT: The regional construction boom has caused the price of building materials to skyrocket, allowing Lebanon's stagnant cement industry to rebound from a period of decline caused by a dip in local consumption rates. Deliveries by Lebanese cement companies increased by 4.04 percent in the first half of 2005, compared to the same period in 2004, according to the Bulletin of Indices. Nicholas Nahhas, general manager of Sibline-1, told The Daily Star that demand for Lebanese cement had risen by 25-29 percent, with the majority of the change coming from foreign markets. Of the 4.5 million tons of cement produced in Lebanon in 2005, 500,000 tons were exported to Iraq and 1 million to Syria. Jamil Bou Haroun is general manager of Holcim, which reported $10.9 million of profits in the first half of 2005, compared to $12.4 million in 2004.
"We estimate that the local market has been maintained or perhaps fallen a little since 2004, which is an achievement given the current political situation," he said. "Officially the Lebanese market consumed 3,000,000 tons of cement last year, 300,000 of which were smuggled over the border to Syria, so the real number is around 2.6-2.65 million tons". The Syrian government has put a cap on cement imports and charges a $30 customs fee for every ton that crosses the border. Meanwhile, the output of its state-run cement company has remained flat since reaching peak production of 5 million tons in 2004, prompting Syrian imports of Lebanese cement to buck political tensions and rise from 300,000 tons in 2004 to 500,000 in 2005.
Iraq is also a profitable market for Lebanese cement, accounting for a third of Lebanon's export volumes in 2005. Since the beginning of Iraq's reconstruction project in 2003, the cost of a ton of cement has swelled from $20 to about $125, as most of the country's 13 state-owned cement plants are operating at about 25 percent capacity, if at all.
But Pierre Doumet, general manager of Cimenterie Nationale, is "not so bullish about last year's numbers" because the high cost of transporting cement to Iraq, $40-$50 per ton, slashes profit margins on shipments to that country. Doumet said the industry needed to invest in more efficient production capacities over the next two to three years. He estimated that almost $150 million worth of resources would be funneled into Lebanon's cement sector to decrease production costs stemming from high fuel and electricity prices; $80 million will be spent by Cimenterie Nationale alone. Bou Haroun says Holcim will spend $10 million dollars in 2006 to replace two of his company's generators with more energy-efficient ones.
Holcim and Cimenterie National both generate their own power, while Sibline spends about $6 million a month on electricity bills. These expenditures make it almost impossible to compete with the cheap cement flooding the market from Iran, Saudi Arabia, and most importantly Egypt, where annual output exceeds local consumption levels by 15 million tons. According to Doumet, electricity in Lebanon costs eight times as much as in Egypt. Lebanese cement manufacturers will also have to contend with Saudi Arabia and Iran in the future, since both countries are "furiously building new plants" to increase export capacity. "You need to look at the big picture," Doumet said. "Since energy costs are such a large cost component in our business, and all of our neighbors who are competitive threats generate their own electricity, we have to be on the cutting edge of new technology."
Throughout the 1990s Lebanon's cement sector went through a restructuring period, when about $600 million was funneled into the industry with a view to upgrading technology and raising capacity to meet the country's reconstruction needs.
Bou Haroun said that from 1999-2001, his company was forced to undertake layoffs when local construction projects began to decline. "After we closed a lot of plants we were forced to downsize," he explained. Experts forecast no increase in local consumption rates, which peaked at 4 million tons in 1995. "New investment should not go to increasing production because the rising demand in neighboring markets is only temporary," said Doumet. "Even production levels in Iraq and Syria will grow, so in relatively good times like these you have to invest to increase efficiency so you can survive when the market slumps, which is inevitable in three to five years."

Storms batter Lebanon's infrastructure
Daily Star staff-Thursday, April 06, 2006
BEIRUT: The heavy thunderstorm that hit the country Tuesday night and swept on through into Wednesday caused severe damage across Lebanon. The National News Agency reported that the rain storms over southern areas has inflicted serious damage on crops and greenhouses over the past 24 hours. In Beirut, roads were flooded and sewers overflowed onto the streets.Orchards were destroyed while roads turned into swamps as the floods churned up dirt and gravel, the report said. It snowed in Sidon for the first time in years, prompting the children to risk the rain and thunder to play in the snow. And it doesn't seem like the weather will let up quickly. The Civil Aviation Department forecasted cloudy weather and thunderstorms with a noticeable drop in temperatures and snow at an altitude of 1,700 meters over the next couple of days.
According to a weather report released Wednesday, the cold fronts prevailing over the Mediterranean basin will only start receding as of Friday night. Until then, a south-westerly wind will blow at a speed of 40 kilometers per hour and visibility will be poor in the highlands. Temperatures will vary between 11 and 21 degrees Celsius along the coast, between 5 and 15 degrees in the mountains, between 6 and 16 degrees inland, and between -3 and 4 in the Cedars area.
The Agricultural Scientific Research Department in Tal Omara, Zahle, urged farmers and fishermen to take precautions against the heavy rains and high winds as snow is expected to fall at 1,200 meters of altitude before the weather starts improving as of Thursday. The department said 31 millimeters of precipitation were recorded during the past 24 hours, bringing the total up to 510 millimeters this year compared with 640 millimeters at the same period last year. - The Daily Star

Can Hariri keep juggling clashing agendas?
By Michael Young -Daily Star staff
Thursday, April 06, 2006
Although a final decision on the future of the Lebanese presidency has been delayed until the end of this month, don't hold your breath. Unless something damning emerges in the next United Nations report on Rafik Hariri's murder, Emile Lahoud is likely to stay on for the foreseeable future. Aside from the Syrian regime, he has unexpected - and unenthusiastic - allies in Walid Jumblatt and Fouad Siniora. The real story behind the national dialogue in recent weeks is the political apprenticeship of Saad Hariri, who had previously conducted politics from Paris and Riyadh. His return to Beirut several weeks ago was long overdue, but it doesn't seem to have made the March 14 coalition any more cohesive. On the contrary, Hariri is juggling contradictory agendas - that of the parliamentary majority he supposedly heads as it faces a resurgent Syrian threat; and that of his own Saudi patrons, who (with the Egyptians) want to see Syrian President Bashar Assad survive politically and yearn for the UN inquiry to be aborted.
Hariri's relations with the Saudis have been uneasy. A sign of this was his recent interview on Al-Jazeera in which he apologized for his allies' rejection last January of the Saudi proposal to improve Lebanese-Syrian relations. Two provisions of the plan (which the Saudis palmed off as a Syrian proposal) were upgrading policy coordination between Beirut and Damascus and the muzzling of Lebanese media. Hariri was wrong in saying the plan was worthy of acceptance, but he also may have been under duress, particularly financial duress, to reaffirm his fealty to the Saudis - and on a notoriously anti-Saudi television station no less.
Saudi calculations go beyond ensuring that Assad remains in power. The kingdom has a substantial Shiite community in its oil-producing Eastern Province and does not want to open itself up to sectarian tension because of Shiite-Sunni hostility in Iraq or Iranian pressures in defense of Syria. An extension of that policy is that Lebanon's Sunnis and Shiites must remain on good terms. That is why Hariri has been wary of confronting Hizbullah Secretary General Hassan Nasrallah in the national dialogue. It also explains why the two men were recently engaged in advanced negotiations over a new president, though Syria's insistence on keeping Lahoud in place was one reason why they went nowhere.
Hariri's bargaining with Nasrallah worried Jumblatt. For one thing the Druze leader was not particularly confident that the inexperienced Hariri would hold his own with one of the more seasoned political actors around. But he also feared that Hariri, in his zeal to see Lahoud ousted, might, consciously or not, become a partner in a quid pro quo satisfying the Saudis, Egyptians, Hizbullah and Syria. Nothing may have yet come of this, but there are no assurances that the Saudis and Egyptians won't try to revive the scheme and persuade the Syrians to go along with it.
Something like this would be on the table: Hizbullah endorses the president's removal, in exchange for which Hariri defends Hizbullah against the disarmament clause in UN Security Council Resolution 1559 and looks the other way on the Lebanese-Syrian delimitation of the Shebaa Farms border. Once ensnared in this logic, however, Hariri could be pushed to yield further by accepting a president with whom Syria feels at ease. In that way, Lebanon would have a pro-Syrian head of state for six years, whereas Lahoud only has a year and a half left in office. The Syrians, Egyptians and Saudis would all welcome this, since a new president might impede the work of a mixed tribunal judging Hariri's killers.
In order to block such a plan, Jumblatt has done two things. He has insisted that Lahoud's departure must follow a "road map" (effectively a package deal) that also includes Hizbullah concessions on its weapons and the Shebaa Farms; and he has publicly praised both Michel Aoun and Charles Rizk, two presidential hopefuls, warning Hariri that he might support either man in torpedoing a bad deal on the presidency. Jumblatt cannot stomach Lahoud, but he knows the president will be out by the end of next year, and he prefers the parliamentary majority to use its electoral strength then to bring someone independent of Syria to power. Jumblatt has a silent ally in Siniora. The prime minister realizes that once a new president is in place, Hariri would replace him at his post. He is also wagering that a weakened Lahoud may be better for the government now, with the president less able to block policy, particularly economic policy. Siniora has silent allies of his own in the March 14 coalition, who feel more secure with him in control than they would an untested Hariri. That may explain why the pro-Syrians have been so eager to discredit the prime minister of late, whether at the Khartoum summit, or at the dialogue session on Monday, when Nasrallah read a paper listing Siniora's flaws.
While the alliance between Hariri and Jumblatt is sturdy, it will suffer strain in the coming months. The Druze leader will continue to seek the support of Maronite politicians, particularly Aoun and Lebanese Forces leader Samir Geagea. He has little choice: he knows that any broad Sunni-Shiite agreement, blessed by the Saudis and Egyptians, would be difficult to oppose without Christian collaboration. A necessary adjunct to this tactic is playing up American and French opposition to Syria, which is why Jumblatt has been so critical of Iranian influence in Lebanon at a time when the Bush administration views Tehran as its arch regional foe.
Hariri must more clearly define where his interests lie. That is easier said than done. He is still very much a Saudi creation, someone who for the moment brings little to the table when dealing with the kingdom's officials. Like his father after he became prime minister, his only real salvation is to become indispensable to his sponsors, so that in weakening him they weaken themselves. That means Hariri must balance Saudi concerns with those of his domestic partners, who feel threatened by the kingdom's indulgence for Assad. Inherited power can sometimes be far more poisonous than the kind you amass on your own.
**Michael Young is opinion editor of THE DAILY STAR.

Maronite Bishops Blame Ruling Regime for Crippled Situation
Naharnet: The Council of Maronite Bishops has said that Lebanon's ruling elite is disabled, a situation that has prevented state institutions from functioning properly.
Such a situation has led to a delay in filling vacant positions in the constitutional and judicial councils, the bishops said in a statement following their monthly meeting that was headed by Patriarch Nasrallah Boutros Sfeir in Bkirki on Wednesday.
One of the issues that the bishops were clearly referring to was the delay in the appointment of the Higher Judicial Council members.
The council cannot assign a judicial investigator to look into the December killing of An Nahar General Manager Gebran Tueni unless all its members have been appointed.
Legislator Boutros Harb, who is among a group of lawyers representing the Tueni family, has repeatedly complained about such a delay, saying President Emile Lahoud was obstructing Gebran's investigation by refusing to sign a decree for the formation of a new council. The term of the former council ended in November.
The bishops also cautioned against possible attempts to grant Palestinian refugees the Lebanese citizenship and allow them to settle permanently in the country.
There are over 390,000 Palestinian refugees in Lebanon, according to the United Nations Relief and Works Agency for Palestine Refugees in the Near East.
Successive Lebanese governments have rejected their permanent settlement because they say it will disturb Lebanon's delicate sectarian balance, as most Palestinian refugees are Sunnis and it will interfere with their right of return to their homeland.
The bishops also criticized the slow pace of progress in the talks held among Lebanon's top rival leaders at an ongoing national dialogue meeting that began March 2.
They said the dialogue would be more effective if the state institutions functioned properly. Beirut, Updated 05 Apr 06, 14:51

Sfeir: Lahoud Has Linked his Fate with Syria
Naharnet: Patriarch Nasrallah Boutros Sfeir has said that President Emile Lahoud, who has linked his fate with Syria, is not fit to fill the country's top executive post anymore.
Speaking to the French magazine Le Point, the head of the Christian Maronite Church said that Lahoud, a former army commander, is not expected to give in to the pressure exerted on him to resign.
"He is a military man, he does not have the disposition to bend. Are the Syrians backing him? Anyway Lahoud has linked his fate to them," the patriarch said in the interview that was published Tuesday in Lebanon's French daily L'Orient Le Jour.
Sfeir, who in recent months has joined the anti-Syrian parliamentary majority in its call for Lahoud to resign, said the pro-Syrian president is not fit to rule over the country anymore as he is increasingly isolated.
"The president does not have the means to fulfill his functions anymore. He has lost his prestige as he is boycotted from outside and inside (Lebanon)," said Sfeir.
Many of Lebanon's top rival leaders, who are currently discussing Lahoud's fate at national dialogue talks, have said that it is up to the patriarch to choose the next head of state, who according to the country's sectarian-based system should be a Maronite.
However, Sfeir has been reluctant to do so, since in the past, his favorite candidates for the presidency were not selected.
"When I will make my choice all the Maronites will be unhappy except for one. I have said what the required qualities are: a person who is qualified, independent, honest and accepted by everyone," Sfeir said.
Asked if he believes the next president should not come from a military background, the patriarch said: "It is said that he should not come from the military. But Gen. Aoun told me that he has not been a military man for over 20 years. It is up to the Lebanese to choose for themselves."
Gen. Michel Aoun was army commander when he was appointed to head a transitional government in 1988. A few months later, he waged a "War of Liberation" against Syria and ended up in exile in France where he spent 15 years. He is now back in Lebanon and has declared his candidacy to the presidency.
Aoun's Free Patriotic Movement was a key member of the anti-Syrian March 14 alliance that staged mass protests against Damascus after the Feb. 2005 assassination of former Prime Minister Rafik Hariri. But the group broke with the coalition and has recently signed a cooperation agreement with the pro-Syrian Hizbullah.
Sfeir said the agreement was a positive move as "the Christians cannot be a separate group. They should cooperate with all the Lebanese."The Patriarch expressed concern about Lebanon's current political crisis and the possibility of an outbreak of violence considering that there are armed groups in the country and weapons are being smuggled across the border with Syria.
"Nobody really wants war. The Arab countries are looking for a peaceful solution and so is the United States," he added. Beirut, Updated 04 Apr 06, 12:55

Government to Debate Economic Reform Ahead of Donor Conference
Naharnet: The government is due to discuss Wednesday a long-awaited reform program ahead of an international donor conference to help Lebanon out of its economic crisis.
Prime Minister Fouad Saniora told As-Safir newspaper that a date for the conference would be set once there is consensus on the reform program to be debated during an extraordinary cabinet session. "No date has been set for the Beirut I conference, awaiting consensus. It will be decided in the next few weeks, after there is an agreement on the reform program among Lebanese officials," he said. The main goal of the reform program is to trim government spending and clamp down on corruption to help reduce the budget deficit.
According to the proposed economic bill the Value-Added Tax will increase from 10 percent to 12 percent in 2006 and 15 percent in 2007. In addition, taxes on interest-earning bank deposits will rise to 8 percent from the current 5 percent.
The Finance Ministry is also proposing an end to the subsidization of cash-strapped Electricite du Liban (EDL), a move that would save $500 million a year. The ministry argues that it can no longer afford to finance EDL that cost the Treasury nearly $1 billion in 2005 alone.
The blueprint also includes a plan to privatize some government-owned assets including the lucrative Telecommunications sectors.
An international conference grouping Lebanon, the European Union, the United States, United Nations, International Monetary Fund and Arab countries was to have been held in Beirut at the end of last year.
It was postponed because of the political crisis that followed the February 2005 murder of former premier Rafik Hariri.
The planned reforms have remained dormant since the November 2000 Paris II conference after which international donors pledged $4.4 billion in aid to support fiscal adjustment and economic development projects.
In turn, Lebanon committed itself to fiscal reforms and to privatize the telecommunications, electricity and civil aviation sectors.
But wrangling between billionaire tycoon Hariri, who was responsible for much of the post-war reconstruction and for the related ballooning of debt, and pro-Syrian President Emile Lahoud stalled the reforms.
Saniora expressed willingness to take into consideration any suggested amendments to the plan. However, he warned that Lebanon should not miss this valuable chance to restore its economy.
"I am open to discussing any alternatives that are proposed from any party as long as this does not waste our chance to carry out this reform operation that Lebanon needs to rise from its financial and economic crisis," said the premier.
As Safir quoted sources close to Lahoud as saying that the president will ask for more clarification on the implementation of some of the proposed reforms including those related to privatization, reducing spending and corruption.
Ministers of the anti-Syrian parliamentary majority walked out of the weekly cabinet session last Thursday following a public spat with Lahoud, whom the majority of MPs is pressuring to step down. Lebanon's economy has still not fully recovered from the devastation of the 1975-1990 civil war. Gross domestic product growth was almost zero last year, after a five percent surge in 2004. Lebanon is also burdened with $38 billion in debt, equivalent to 180 percent of GDP.(AFP-Naharnet) Beirut, Updated 05 Apr 06, 14:45

Saudi Arabia Offers to Mediate Between Lebanon and Syria
Naharnet: Saudi Foreign Minister Saud el Faisal has said that his country is ready to mediate between Lebanon and Syria to help mend relations between the two countries, if it is asked to do so.
Speaking at a press conference in Riyadh Tuesday, Faisal expressed his country's hope that the two neighbors will be able to restore ties between them while respecting each others' independence.
He announced Saudi King Abdullah's "readiness to offer any help to Lebanon and Syria, if he is asked to do so."
However, Faisal said it was up to Beirut and Damascus to show readiness to improve relations between them, stressing that the kingdom is "keen on the stability of both countries."
"It is up to the officials in the two countries to bear responsibility and show their intention and willingness to ensure coexistence and harmony between them," he said.
Saudi Arabia hopes that national dialogue talks between Lebanon's top political leaders will succeed in bringing stability to the country, Faisal said.
The participants at the meeting have agreed on a number of steps that should be taken with regards to relations with Syria including demarcating the border, establishing diplomatic ties and defining the Lebanese identity of the Shabaa Farms. Syrian officials have shown reluctance to cooperate with these requests. Analysts have suggested that Damascus would not collaborate without Arab pressure.
A previous initiative by Saudi Arabia and Egypt launched a few months ago was turned down by Lebanese officials who described it as a series of Syrian ideas transmitted through the two regional political heavyweights.
Beirut, Updated 05 Apr 06, 11:10

Iranian spies working Lebanon-Israel border
April 04, 2006 -By: ICEJ News
Iran has set up a sophisticated intelligence gathering operation in southern Lebanon to identify targets in northern Israel in the event of a military confrontation over its nuclear program, the daily (London) Telegraph reports. Senior Israeli military commanders say Iran has spent tens of millions of dollars helping its close ally Hizb'Allah to set up a network of control towers and monitoring stations along the entire length of Israel's border with southern Lebanon. "This is now Iran's front line with Israel," a senior Israeli military commander said. "The Iranians are using Hizb'Allah to spy on us so that they can collect information for future attacks." Teams of Iran's Revolutionary Guards travel regularly to the area to help train local Hizb'Allah fighters in terrorist tactics.

Roman-Era Burial Cave Unearthed in Lebanon
Staff and agencies04 April, 2006
BEIRUT, Lebanon - Laborers working on the infrastructure of a sewage canal network have unearthed a Roman-era burial cave from the 2nd or 3rd century A.D. near the ruins of Baalbek in northeastern Lebanon, the official National News Agency reported Tuesday. Al-Rifai was quoted as saying that representatives of the antiquities department accompanied the excavations because of the archaeological importance of the Baalbek area, famous for its Roman ruins, some 36 miles northeast of Beirut.

Syria hounds foes: Lebanon minister
Wednesday, 5 April, 2006, 11:43 AM Doha Time
BEIRUT: Lebanese Teleco-mmunications Minister Marwan Hamadeh said yesterday that Damascus was “after” “anyone who rejected the assassination of anti-Syrian opposition leaders.”Hamadeh, who himself survived an assassination attempt in October 2004, had a warrant issued against him on Monday by a Syrian court along with his close ally, Druze leader Walid Jumblatt, and an anti-Syrian journalist Fares Khasan. “I have received the warrants through my own means and not directly...the warrants are for questioning ordered by a Syrian penal tribunal,” Hamadeh said.
“These warrants are considered new threats against our security,” he said. A Syrian lawyer confirmed in Beirut that a Syrian military court had filed a lawsuit in February against Jumblatt on charges of “inciting the US administration to occupy Syria.”
The lawyer did not confirm whether the lawsuit includes Khasan and Hamadeh. Khasan writes for the Lebanese daily al Mustaqbel and hosts a political show on Future Television. Both institutions are owned by the family of the late premier Rafik al-Hariri. Jumblatt is one of the Lebanese opposition leaders who has accused Syria of involvement in a series of bombings, including a failed attempt on Hamadeh’s life and the murder of Hariri in February 2005. Jumblatt, once a close Syrian ally, fell out with Damascus in 2004 when it influenced Lebanon’s pro-Syrian parliament to amend the constitution in favour of extending the mandate of pro-Syrian President Emile Lahoud. Lebanon was hit in 2005 by 15 blasts that targeted anti-Syrian political figures and journalists. Hamadeh said he submitted a copy of the warrants to Lebanese parliament Speaker Nabih Berri and the UN’s chief investigator into Hariri’s assassination, Serge Brammertz. – DPA

Syria Draws Fire Over Rights Activists
Staff and agencies 05 April, 2006
By TANALEE SMITH, 7 minutes ago
CAIRO, Egypt - Amnesty International criticized Syria on Tuesday for arresting political and human rights activists, calling the crackdown another "blot" on the country‘s poor human rights record. The same court also sentenced Abdul-Sattar Qattan, a member of the banned Muslim Brotherhood, to 12 years in prison. Arrests of human rights and pro-democracy activists are common in Syria. President Bashar Assad has freed hundreds of political prisoners since coming to power in 2000 but has also clamped down on critics of his government. Amnesty expressed concern that detainees could be subject to torture and ill-treatment, "which is common in Syrian interrogation and detention centers." The statement complained of scores of recent arrests of Kurds, Islamists, human rights activists, writers, students and leftists, as well as harsh sentences and unfair trials. It said several hundred political prisoners are being held.

10 people killed, more than 40 hurt in Syrian road accidents
(AP)5 April 2006 - DAMASCUS, Syria - Ten people were killed and more than 40 others injured in two road accidents on the same highway in northern Syria, the official Syrian Arab News Agency reported on Wednesday.
Both accidents occurred on Tuesday night, when it was raining, on the main road between the capital Damascus and Homs, 160 kilometers (100 miles) to the northwest. In the one case, two speeding cars collided, and other vehicles crashed into them. But nobody was killed until a truck smashed into the pileup, killing seven people and seriously wounding four others, said Mohammed al-Kassem, the deputy head of Syria’s Society for the Prevention of Road Accidents.In the second accident, a public bus overturned, killing three people and injuring 40 others, SANA reported. The agency said the bus had been speeding.