LCCC ENGLISH DAILY NEWS BULLETIN
July 04/09

Bible Reading of the day
Holy Gospel of Jesus Christ according to Saint John 20:24-29. Thomas, called Didymus, one of the Twelve, was not with them when Jesus came. So the other disciples said to him, "We have seen the Lord." But he said to them, "Unless I see the mark of the nails in his hands and put my finger into the nailmarks and put my hand into his side, I will not believe." Now a week later his disciples were again inside and Thomas was with them. Jesus came, although the doors were locked, and stood in their midst and said, "Peace be with you." Then he said to Thomas, "Put your finger here and see my hands, and bring your hand and put it into my side, and do not be unbelieving, but believe." Thomas answered and said to him, "My Lord and my God!" Jesus said to him, "Have you come to believe because you have seen me? Blessed are those who have not seen and have believed."

Free Opinions, Releases, letters & Special Reports
Al-Hariri’s Government and the Quartet “Umbrella”/By: Zuheir Kseibati 03/07/09

Saudi Arabia, Syria, Iran…and Lebanon. By: Walid Choucair 03/07/09
Gad Elmaleh's absence is yet another missed opportunity in Lebanon. The Daily Star 03/07/09
Iran's leaders fear their own people most. By Shaazka Beyerle 03/07/09
Lebanon’s golden opportunity-Future News 03/07/09

Latest News Reports From Miscellaneous Sources for July 03/09
Kouchner in Lebanon Next Week in Support of Democracy-Naharnet
German foreign minister lines up Mideast tour-AFP
Security and Defense: Hizbullah's rise from the ashes-Jerusalem Post
No sign Iran seeks nuclear arms: new IAEA head-Reuters
Eddé: No one can offer Hezbollah concessions regarding its arms on our behalf. Now Lebanon
Saudi-Syrian summit Monday, Hizbullah out of government-Future News
Geagea: complying with March 8 demands blocks democracy-Future News
Youssef denied rumors on Hariri’s visit to Syria-Future News
Tehran uses Beirut as a ‘mail box’ for political messages-Future News
Jumblatt: Hariri can rule through Saudi-Syrian consensus-Future News
Hamade: no one can force us to make concessions-Future News
Gemayel: to normalize relations with Syria cautiously-Future News
Syria Sets Conditions, Wants 'Price' to Facilitate Deal on Lebanon Government-Naharnet
Syrian-Saudi Summit on Lebanon, Region Likely on Monday-Naharnet
Opposition Again Presses for Veto Power-Naharnet
Jumblat: PM-Designate Governs Through Consensus, Not Against Syria-Naharnet
Gemayel: We Won't Forget the Past, We Need Guarantees from Syria
-Naharnet
Hizbullah Will Take Part in Cabinet, Denying Reports that Say Otherwise
-Naharnet
Cabinet Knots: One Catholic, Another is Aoun's Desire to Bring His Son-in-Law into Government
-Naharnet
Hariri Asks Miri's Family to Trust the State and its Institutions
-Naharnet
France Informs Syria its Rejection of Veto Power in Lebanon Government
-Naharnet
Sison: We Are Proud to Support Lebanon's Economic Strength, Key Institutions
-Naharnet
Sikorsky Helicopter in Service
-Naharnet
Hizbullah: Israel Prime Suspect in Lebanon Crimes, Ban Should Have Condemned it
-Naharnet
Geagea: Those Calling for Dialogue with Syria are Disregarding Martyrs' Sacrifices
-Naharnet
Soaid: Hariri's Visit to Syria before a Cabinet Shape-Up Is 'Unacceptable'
-Naharnet
Hariri wants to include 'broadest assortment' of parties in cabinet-Daily Star.
Lebanese man gets 25 years for arms dealing-Daily Star
Hizbullah slams Ban's 'extreme bias' in 1701 report-Daily Star
Sleiman rules out any tolerance for security breaches-Daily Star
Capital intelligence raises Lebanon's rating to stable-Daily Star
Lebanon again plagued by power rationing amid tourist influx-Daily Star
ISF arrests suspects in armed robbery of AUB students-Daily Star
Iran announces more arrests over election unrest-Daily Star

ddé: No one can offer Hezbollah concessions regarding its arms on our behalf
July 3, 2009 /Now Lebanon/“No one has the right to offer Hezbollah concessions regarding its arms on our behalf,” National Bloc party leader Carlos Eddé said on Friday, adding that Hezbollah uses intimidation tactics to reach its goals. In an interview with MTV, the bloc leader accused most countries of interfering in Lebanon “on different levels,” while saying that the US and France present their aid to Lebanese state institutions, not to specific political parties. “Our relations with Saudi Arabia are open and transparent,” Eddé said, “unlike the Iranian and Syrian interference.”

Gad Elmaleh's absence is yet another missed opportunity in Lebanon
By The Daily Star
Friday, July 03, 2009
Editorial
Gad Elmaleh, "the funniest man in France," will not be tickling audiences this month at the Beiteddine Festival. Last Saturday, the French stand-up comedian and actor, of Jewish-Moroccan descent, announced he had cancelled his performances in Lebanon because of security concerns.
The story behind Elmaleh's absence kicked off last week when Hizbullah's television affiliate Al-Manar published a photo of the comedian next to a photo of an Israeli soldier in full combat attire bearing his likeness. The accusations began: Elmaleh is an avowed Zionist devoted to Israel's protection; he served in the Israeli army for four years; he participated in campaigns in both the Gaza Strip and Lebanon. Whether or not these charges are true - organizers of the festival were quick to call the photo a forgery, and Elmaleh's manager flatly denied the claims - the argument taking place is legitimate. No Lebanese needs reminding of why Israeli soldiers are not welcome in our country. Timing has further complicated matters: Elmaleh's first performance was scheduled for the weekend of the third anniversary of the 2006 July War, from which Lebanon still bears considerable scars.
But with a lack of evidence to prove or disprove the accusations, we are left to speculation. Even if Elmaleh at one time served in the Israeli army - and this is indeed an if - what would his performance in Lebanon have meant? Might it at least have indicated a reciprocal curiosity and the ability to compartmentalize popular amusement from politics? As a world-famous comic and actor, Elmaleh stands on a public stage, one that is neither Israeli nor Jewish. His medium is comedy not propaganda, laughs not malice.
Although the absence of one comedian hardly dents the esteemed programs of Lebanon's many summer festivals, it underscores to the crude and dated rubric by which this country's partisan campaigns are waged and its political victories are measured. Lebanon's ruling class is buried up to its ears in politicking and blind to creative problem solving. What if, for example, Walid Jumblatt, whose wife runs the Beiteddine festival, had offered to take Elmaleh and donate his shows' proceeds to one of Lebanon's overcrowded and underserviced Palestinian refugee camps? What's the more principled stance: building awareness or further engendering enmity? The consequences of this deficiency are far broader than Elmaleh or the billing of summer festivals. The backwardness of Lebanon's political jockeying has prevented the country from moving ahead on issues that desperately require an innovative approach, like a long-running energy crisis or a haphazard environmental protection policy. The Elmaleh affair amounts to an opportunity lost, for the comedian, his prospective audience, and a country struggling to find a new way forward.

Syria Sets Conditions, Wants 'Price' to Facilitate Deal on Lebanon Government
Naharnet/Syria, not only has set conditions, but reportedly wants a price beforehand to facilitate formation of a new Lebanese government.
Pan-Arab daily al-Hayat on Friday, which carried the report, said Syria has proposed that the various Lebanese parliamentary blocs visit Damascus to strike a deal on the formation of a national unity government. It said Syria is seeking to reach an agreement in Damascus similar to that of Doha in May 2008 which ended a long-running political crisis that nearly drove the country to a new civil war. The daily An Nahar, meanwhile, said the Syrian conditions are "impossible to implement." Among these conditions, An Nahar said, was a visit to Damascus by Prime Minister-designate Saad Hariri as part of a tripartite summit between Lebanon, Syria and Saudi Arabia prior to government formation.  It said the basket of conditions appeared to be closer to pushing the March 14 coalition into relinquishing the victory after achieving a majority in Parliament. While the opposition declined to comment on media leakage about Saudi-Syrian contacts, sources concerned with the issue told al-Hayat that Damascus was in a rush toward normalization of ties. Beirut, 03 Jul 09, 08:22

Opposition Again Presses for Veto Power
Naharnet/The Hizbullah-led Opposition continued to press for veto power and proportional representation in the new government contrary to the belief that the minority March 8 coalition was willing to be lenient with that issue, pan-Arab daily al-Hayat said Friday. It said nearly all the Opposition parliamentary blocs have hinted during consultations with Premier-designate Saad Hariri on the formation of a new government that the March 8 forces is not holding on to veto power. Most of these forces, however, re-emerged to demand veto power following talks on Sunday between Syrian President Bashar Assad and Saudi envoy Prince Abdul Aziz in the presence of Saudi Information Minister Abdul Aziz Khoja and Syrian Foreign Minister Walid Muallem, Al-Hayat reported. It said the Opposition clearly wanted to send a message to the Lebanese that Syrian-Saudi contacts have so far not yielded the desired results and that more effort is needed to come out with the perfect form of government. Opposition sources declined to go into details, saying that its final position will only emerge after mulling over Hariri's proposals that should contribute to opening a new page between March 8 and March 14 forces. Beirut, 03 Jul 09, 10:33

Syrian-Saudi Summit on Lebanon, Region Likely on Monday

Naharnet/A Syrian-Saudi summit is expected to take place in Damascus on Monday, Egypt's official Middle East News Agency (MENA) said.
It quoted an Arab diplomatic source in Damascus as saying that Saudi King Abdullah Bin Abdul Aziz will visit Damascus next Monday for talks with Syrian President Bashar Assad that would tackle inter-Arab relations as well as regional issues, particularly Lebanon. MENA said the summit – which is expected to focus on Lebanon in the wake of efforts to form a government of national unity – would bridge the gap in Syrian-Saudi relations which deteriorated since the Feb. 14, 2005 assassination of former Premier Rafik Hariri.
Al-Mustaqbal newspaper, however, was skeptical about the Syrian-Saudi summit, saying it is still unconfirmed. It quoted Arab diplomatic sources as saying that the convening of the summit is dependent on outcome of talks to be held in Damascus Friday between Syrian officials and Saudi envoys Prince Abdul Aziz and Information Minister Abdul Aziz Khoja.
The sources said the Saudi side expects to come back with a clear response from Syria to a number of specified questions. Meanwhile, Al-Akhbar daily quoted a diplomatic source as saying that no specific date has been set for the summit. Beirut, 03 Jul 09, 09:10

Germany: Peaceful Lebanon Polls, Improved Beirut-Damascus Ties 'Window of Opportunity'

Naharnet/Germany said Friday that there were several rays of hope in the Middle East, including the peaceful Lebanese parliamentary elections and improved relations between Lebanon and Syria. German foreign ministry spokesman, Andreas Peschke, said such factors present a "window of opportunity." He told a regular government news conference that Foreign Minister Frank-Walter Steinmeier will tour the Middle East next week seeking to lend momentum to U.S. President Barack Obama's drive to jumpstart the dormant peace process. Steinmeier will visit Israel and meet Palestinian officials in the West Bank on Monday before traveling to Syria and Lebanon on Tuesday. "We have had new momentum in the Middle East peace process since the new government took office in Washington and support its fresh efforts to reach a two-state solution and a return to negotiations," Peschke said. He noted the crucial role neighboring countries must play in the process and said Germany saw several rays of hope in the region including the elections in Lebanon and improved ties between Beirut and Damascus -- factors that present a "window of opportunity." Peschke said Germany was pursuing a Middle East policy, in close consultations with its European partners and the United States, that moved away from "slogans" and focused on practical assistance on the ground. Such steps include development assistance for the Palestinians and training for security forces in the territories to help prepare for eventual statehood. Steinmeier will assess the progress of such projects while in the West Bank.(AFP-Naharnet) Beirut, 03 Jul 09, 14:55

Gemayel: We Won't Forget the Past, We Need Guarantees from Syria

Naharnet/Phalange party leader Amin Gemayel said Friday that Syria has to prove its good intentions towards Lebanon by dismantling armed Palestinian bases and demarcating the border.
"We want good relations (with Syria) and we support technical visits between the two countries. But we need to know where are we heading and what are the guarantees," Gemayel told LBC TV network. He said Damascus should give guarantees and show its good intentions by not resorting to the obstruction of Lebanese government work, dismantling armed Palestinian bases, demarcating the border, unveiling the fate of missing Lebanese and recognizing the Lebanese identity of Shebaa farms area. "The difference between us and Syria is that it wants a relationship based on turning the page on the past," the Phalange leader told LBC. "Our stance is clear: We didn't make all these sacrifices to neglect the country again," Gemayel said. "We need to know who killed the martyrs." On the Syrian-Saudi summit that is expected to take place in Damascus on Monday, Gemayel said: "It's better for the summit to be held in Riyadh if Lebanon wants to participate in it." Beirut, 03 Jul 09, 12:26

Jumblat: PM-Designate Governs Through Consensus, Not Against Syria

Naharnet/Progressive Socialist Party leader Walid Jumblat called for the restoration of a climate of trust between Lebanon and Syria by focusing on the issue of bilateral relations.
In remarks published by the daily As Safir on Friday, Jumblat said Prime Minister-designate Saad Hariri "can govern, but not against Syria and not by hatred."
He said Hariri also "governs by Saudi-Syrian consensus which we want as an introduction to Saudi-Iranian consensus for the sake of avoiding the dangers of a sectarian rift, particularly in Lebanon."Jumblat advised Hariri to intensify his meetings with Hizbullah chief Sayyed Hassan Nasrallah and Parliament Speaker Nabih Berri, urging him to "follow the example of the process of dialogue, rapprochement and reconciliation" between Hizbullah and the PSP. Beirut, 03 Jul 09, 13:09

Hizbullah Will Take Part in Cabinet, Denying Reports that Say Otherwise

Naharnet/Hizbullah official Nawwaf Mousawi denied reports that the party planned to give up its share in the new government in favor of its allies. Musawi was responding to a report carried by the Central News Agency (CAN) on Thursday saying Hizbullah's Shoura Council has decided not to take part in the next Cabinet. He stressed that Hizbullah is for "real and effective participation" in the new government of national unity. CAN, citing sources close to the Opposition, said Hizbullah's decision not to participate in the government was to guarantee a larger measure of freedom of movement and reduce the pressure The report cited sources close to the opposition as saying that the party's decision to stay out of the government was aimed at avoiding any pressure on it with regards to implementation of U.N. Security Council Resolution 1701. Beirut, 03 Jul 09, 12:13

Cabinet Knots: One Catholic, Another is Aoun's Desire to Bring His Son-in-Law into Government
Naharnet/Government formation once again hit obstacles. This time they are related to the Roman Catholic seat in the new Cabinet as a result of the jam of candidates who stood for two Catholic posts. MP Michel Pharaon in this regard insisted on being part of the new government for two reasons: The first is the need to correct the error that was committed by the post-Doha government and return to the representation of Beirut Christian blocs as usual since the independence. The second is related to the Catholic confidence in him that brought him into Parliament. Pharaon told As Safir newspaper in remarks published Friday that Free Patriotic Movement leader Gen. Michel Aoun's share in the new Cabinet should be agreed upon with his allies in the Opposition as part of the 10 ministers they will get. In turn, Zahle in the Heart bloc leader MP Nicola Fattoush stressed that his bloc is among the biggest in Parliament and "is entitled to receive its rights." The same thing goes to Aoun who intends to nominate a Catholic, let alone President Michel Suleiman's share in this respect. On the Opposition side, well-informed sources told al-Liwaa newspaper that among the obstacles was Aoun's insistence to bring his son-in-law Jebran Bassil into the government and Hizbullah's insistence to employ former MP Ossama Saad in the new Cabinet. Beirut, 03 Jul 09, 11:54

Hariri Asks Miri's Family to Trust the State and its Institutions

Naharnet/Premier-designate Saad Hariri paid condolences to the family of Zeina Miri, who was killed during clashes between Amal and al-Mustaqbal movement supporters in the Beirut neighborhood of Aisha Bakkar on Sunday. Hariri urged the victim's family on Thursday "to trust the state and its institutions like the army and security forces" and hoped the assailants would be brought to justice. Hariri had just returned to Beirut after a 24-hour visit to Saudi Arabia on Wednesday. Progressive Socialist Party leader Walid Jumblat also paid condolences to Miri's family and stressed that "only the state and the army can protect us." Jumblat also vowed to "do everything possible to arrest the criminals" and promised that "justice will take its course."
The army said on Thursday it has arrested 21 people over the fighting in Aisha Bakkar. "All 21 participants in the riots and shootings that led to a casualty, injuries and property damage in the district of Aisha Bakkar were arrested," the army said in a communiqué. Beirut, 03 Jul 09, 08:20

France Informs Syria its Rejection of Veto Power in Lebanon Government

Naharnet/France rejects veto power in any new Lebanon government, stressing that the parliamentary majority has the right to proper representation in the Cabinet.
The French position was conveyed to Syrian President Bashar Assad and other Syrian officials by French President Nicola Sarkozy's political chief of staff Claude Gueant during a recent visit to Damascus, according to pan-Arab daily al-Hayat. It quoted political sources as saying that Damascus was surprised by Gueants' tough attitude, saying that while the French official hailed Syria's role in facilitating Lebanese parliamentary elections, he failed to adopt Damascus' views which support its allies' demand for veto power.
The sources believed that Damascus "wants everything, without giving anything in return." Beirut, 03 Jul 09, 10:00

Sison: We Are Proud to Support Lebanon's Economic Strength, Key Institutions

Naharnet/U.S. Ambassador Michele Sison said during a celebration of the 233rd anniversary of the United States' independence that her country is proud to support the Lebanese Army and Internal Security Forces. "America is proud to be a partner in supporting Lebanon's economic strength, in supporting Lebanon's education system and civil society. We are also proud to support the key Lebanese institutions of the Army and the Internal Security Forces," Sison told more than 1000 guests at the U.S. embassy on Thursday.
"To our Lebanese guests tonight, let me emphasize that in America, you will continue to find a strong friend and partner, shared values, and an unwavering commitment to your freedom and democracy," she said. Sison also hoped that the celebration would become tomorrow's partnership. "There's nothing we can't accomplish, no challenge we can't meet, if we work together toward common goals and seek common ground." The attendees included national and local government officials, business executives, religious leaders, Lebanese Armed Forces and Internal Security Forces officers, media personalities, cultural figures and alumni of U.S. government-sponsored programs. Foreign Minister Fawzi Salloukh represented President Michel Suleiman in the ceremony. MP Ali Bazzi was the representative of Speaker Nabih Berri while caretaker Premier Fouad Saniora sent Minister Nassib Lahoud to represent him. MP Bassam al-Shab represented Prime Minister-designate Saad Hariri. Among the invited guests were those who work with USAID, the Middle East Partnership Initiative and Public Diplomacy on projects such as small business development, leadership training, civil society promotion, transparency, and combating trafficking in persons. Beirut, 03 Jul 09, 07:54

ISF arrests suspects in armed robbery of AUB students

Daily Star staff/Friday, July 03, 2009
BEIRUT: The Internal Security Forces (ISF) arrested late on Wednesday and early Thursday two members of a gang who ambushed and robbed, one day earlier a group of six students from the American University of Beirut. The six students, who were abducted Wednesday by a group of gunmen in the mountainous region of Aqoura, were released 90 minutes later by their captors in the nearby Homsya town after being stripped of their possessions.
"The Information Branch of the ISF succeeded in arresting one of the members of the gang at 11:30 p.m. on Wednesday on board of a navy blue Grand Cherokee vehicle and arrested another one on Thursday," the ISF statement added.
According to the ISF statement, 200 grams of hashish were found in the possession of one of the kidnappers.
On Wednesday, kidnappers exchanged fire with security forces after being tracked until the Britel village of Baalbek and managed to evade pursuit.
The students were on their way to conduct an environmental study in the area when their cars, a Mercedes Benz and a Kia Sportage, were ambushed at 8:30 a.m. by the perpetrators, who were driving a Range Rover.
According to the students, the kidnappers pretended to be security officers and warned them against informing security forces of the incident. The incident occurred amid a spate of car thefts across the country.
AUB's dean of student affairs, Maroun Kisirwani, issued a statement on Thursday in which he confirmed that the six AUB students who were victims of an armed robbery in the Jbeil region one day earlier were "safe and sound."
"The six AUB students were conducting field work projects in the mountainous areas of Faraya-Mayrouba for a geology course they had signed up for, when they were robbed by gunmen of their car and personal belongings," the statement said.
Geology 229 is a course requirement for all geology majors and involves practical field work, during which students study the soil and rock formations of an area, submitting reports on their findings. The course is run by a professor who regularly supervises student groups at their field work site.
"The course has been offered at AUB for over a decade and course coordinators have been organizing such field work without running into any problems before," said Kisirwani. "The chosen area is considered a very safe and touristic area, and includes Lebanese army bases and vacation resorts. We deeply regret that our students were victims of such a crime, but are grateful for their safety. In any case, the university will follow up this breach of security with the authorities and adopt stricter measures in the future. Our students and their safety are our priority." - The Daily Star

Hizbullah slams Ban's 'extreme bias' in 1701 report

By Dalila Mahdawi /Daily Star staff
Friday, July 03, 2009
BEIRUT: Hizbullah on Thursday criticized UN Secretary General Ban Ki-moon over what the group called "extreme bias" toward Israel in his latest report on the implementation of Security Council Resolution 1701. "UN Secretary General Ban Ki-moon's recent report ... is extremely biased toward Israel and reinforces the unjust stances of [key Israeli ally] the US," a statement from the group said.
The statement made reference to US Deputy Assistant Secretary of State for Near Eastern Affairs Jeffrey Feltman, who on Wednesday told the Kuwaiti newspaper Al-Qabas that Hizbullah's arms continued to pose a threat to Lebanon and the Middle East as a whole.
In his tenth report on the implementation of Resolution 1701, which ended Israel's 34-day war on Lebanon in July-August 2006, Ban on Tuesday said he was "concerned at the Lebanese government allegations" that several Israeli spy cells had been recently discovered, saying Tel Aviv's covert operations could pose a threat to the delicate peace between the enemy neighbors.
At least 30 people in Lebanon have been detained on suspicion of collaborating with Israel since a high-profile campaign was launched earlier this year. At least 15 people, including two Lebanese security officials, have been formally charged.
But instead of condemning Israel's blatant aggression, Ban's report was "weak, timid and confusing," Hizbullah said.
It would have been appropriate for [Ban] to condemn the Israeli acts and hold the Zionist entity [Tel Aviv] fully responsible for these crimes and their consequences," added the statement. "The evidence submitted by Lebanon to the UN was sufficient to issue a strongly worded condemnation of Israel."
Ban's remarks did little to reflect the dangers that Israel's spy cells posed to Lebanon's national security and stability, even though investigations proved the Israeli collaborators had supplied Tel Aviv with detailed information about Lebanese officials and security establishments, as well as Hizbullah, the statement said.
"Through its spy networks in Lebanon, Israel is not only responsible for crimes and attacks committed during the July 2006 war ... it is also the prime suspect in many crimes against Lebanon's internal security," it said. The UN's credibility diminished with each report it issued regarding Israel, Hizbullah added.
The Shiite group reiterated its determination to continue its armed resistance. "The injustice of the US and the bias of the UN will not stop us from confronting dangers that threaten Lebanon," the statement concluded. Hizbullah's remarks come one day after Lebanon's Foreign Affairs Ministry issued a similar statement complaining Ban's report had not sufficiently addressed the "dangers" of the Israeli spy cells.
Ban said the discovery of the covert networks could pose a threat to the fragile peace between the enemy neighbors but refrained from condemning them "as being a threat to Lebanese sovereignty nor as a violation of the resolution," a statement from the ministry said on Wednesday. Ban's 17-page report urged the next Lebanese cabinet to renew its commitment to implementing Security Council Resolution 1701. As in earlier reports, the UN chief reiterated his call for Lebanon and Israel to abide by the resolution's obligations and cited a number of violations by both countries. Ban also called for the disarmament of Hizbullah, suggesting weapons smuggling in south Lebanon may have occurred. "To date, UNIFIL has neither been provided with, nor found, evidence of new military infrastructure or the smuggling of arms into [UNIFIL's] area of operations" in South Lebanon, the UN report said. "Bearing in mind that it is impossible to prove a negative, the unauthorized presence and smuggling of weapons into the area cannot ever be entirely excluded."
Lebanon's Foreign Ministry criticized the report as "unclear."

Lebanese man gets 25 years for arms dealing

Friday, July 03, 2009
NEW YORK: A Lebanese man convicted of agreeing to sell millions of dollars of weapons to leftist guerrillas in Colombia was sentenced to 25 years in prison on Wednesday. Tareq Mousa al-Ghazi, 62, was accused of taking part in the weapons deal with Monzer al-Kassar, a Syrian who was convicted of terrorism charges and sentenced in February. The deal turned out to be a US-backed sting operation that stretched from Lebanon to Spain and Romania. Ghazi was found guilty in federal court in March of three of four charges he faced, including conspiring to kill US officers and conspiring to acquire anti-aircraft missiles. During the trial, prosecutors said Ghazi took part in the deal thinking the weapons would go to the Revolutionary Armed Forces of Colombia, or FARC, and believed they would be used to kill Americans seeking to disrupt the cocaine trade. He was arrested in mid-2007 in Romania. Kassar, who prosecutors called one of the world's most prolific arms dealers, was sentenced to 30 years in prison. Moreno Godoy was sentenced to 25 years. - Reuters

Hariri wants to include 'broadest assortment' of parties in cabinet
PM-designate pays condolences in Aisha Bakkar

By Elias Sakr /Daily Star staff
Friday, July 03, 2009
BEIRUT: Prime Minister-designate Saad Hariri is determined to shape a national-unity cabinet that includes "the broadest assortment of political parties," sources close to the March 14 Forces told The Daily Star on Thursday. The sources added that the premier-designate has yet to reach an agreement concerning the make-up of the upcoming national-unity Cabinet
The sources said that news reports tackling the shape of the next government were "mere speculation," adding that Hariri was facing "obstacles" with regard to the distribution of ministerial portfolios and the allocation of shares. On Thursday, Hariri paid condolences to the family of Zeina al-Meeri, the victim of sectarian clashes between Amal and Future Movement supporters in the Beirut neighborhood of Aisha Bakkar on Sunday. Hariri urged the victim's family to trust the state's institutions and security forces, adding that he hoped the assailants would be brought to justice. Hariri had just returned to Beirut after a 24-hour visit to Saudi Arabia on Wednesday.
"Hariri traveled to Saudi Arabia for personal reasons," a source close to him told The Daily Star on Thursday.
In other news, Future Movement MP Ammar Houri confirmed on Thursday that the upcoming cabinet make-up would grant President Michel Sleiman the tipping voice, adding that the structure of next government would neither grant the opposition a blocking third nor the March 14 coalition a two-thirds majority.
Meanwhile, Hizbullah on Thursday denied news reports that the party planned to cede its share in the next Cabinet to its allies.
A report carried by the Central News Agency on Thursday said that Hizbullah's Shura Council decided during a recent meeting to refrain from participating in the next cabinet.
The report cited sources close to the opposition as saying that the party's decision not to take part in the government would secure it larger freedom of movement and reduce the pressure when it comes to the implementation of United Nations resolutions, especially UN Resolution 1701.
"Our position concerning government formation is clear to all and we will not comment on any media reports," Hizbullah MP Nawwaf al-Mousawi told The Daily Star Thursday
Hizbullah's MP Nawwar Sahili said on Thursday that the majority had offered the opposition several proposals regarding the formation of the next government, however he stressed that his party has not yet declared its approval or rejection of any of those suggestions.
Also commenting on the government formation, Lebanese Forces (LF) boss Samir Geagea criticized on Thursday "those who demanded that the March 14 coalition satisfy Damascus' allies requests," in reference to Lebanon's opposition groups. During a news conference at his residence in Maarab, Geagea said dialogue with Syria concerning the upcoming government was "unnecessary."  Geagea said that opposition groups calling for a dialogue with Syria, "overlooked the sacrifices of Lebanon's martyrs and undermined the country's sovereignty and independence. The LF leader said the opposition statements ignored the fact that the March 14 Forces won a majority of seats in Parliament.
Meanwhile, pan-Arab daily Al-Hayat said on Wednesday that Syrian President Bashar Assad had declared his readiness to meet with Lebanon's premier-designate Hariri during an expected Syrian-Egyptian-Saudi-Lebanese summit.
Earlier this week, French President Nicholas Sarkozy's political chief of staff Claude Gueant and his chief diplomatic adviser Jean-David Levitte sat down for talks with Assad and met with his Foreign Minister Walid al-Moallem. According to French Foreign Ministry spokesman Eric Chevallier, the talks took place "in a very constructive spirit and are part of the regular contacts with Syrian authorities and provided an opportunity for exchange on bilateral and regional issues."

GM lawyer urges quick approval of plan to sell assets, form new firm
Automaker's only option to the sale is liquidation - attorney

Friday, July 03, 2009/Bree Fowler
Associated Press
NEW YORK: Warning that the demise of General Motors Corp. would have a disastrous ripple effect over the US economy, an attorney for the automaker urged speedy approval of GM's plan to sell the bulk of its assets and emerge from court oversight as a new company. GM attorney Harvey Miller said in a bankruptcy court hearing Wednesday that the automaker's only option to the sale is liquidation. He noted the Treasury Department will cut off funding for the company's operations after July 10 if the sale is not approved by then.
No other investors have stepped forward with an alternate plan or to supply the more than $50 billion in financing the Treasury will have put into GM before all is said and done, Miller said.
"The economics in this case don't change if this sale doesn't get approved; they just get worse," Miller said.
He added that the resulting liquidation would place the future of GM's hundreds of suppliers in danger, as well as send the United States into an even deeper economic crisis.
GM's government-backed plan for a quick exit from Chapter 11 hinges on the sale plan, which would allow the automaker to leave behind many of the costs and liabilities that have made it unprofitable. Chapter 11 is a section of the bankruptcy law that protects a bankrupt company or individual from creditors to allow a restructuring.
Hundreds of parties including bondholders, unions, state officials, consumer groups and individuals have filed objections to the sale, threatening to hold up the process.
Closing arguments in the sale hearing began Wednesday afternoon with Miller's summation and continued into the evening with statements from the sale's opponents.
The hearing is scheduled to resume at 9 a.m. EDT (1300 GMT) Thursday. It was unclear when US Judge Robert Gerber will rule.
Tom Kennedy, an attorney for the International Union of Operating Engineers, United Steelworkers and IUE-CWA, said if the sale goes through it would lead to the elimination of benefits for the unions' retirees.
Consumer groups and several individuals with product-related liability claims against the company also are trying to block the sale because people with pending litigation against GM would be forced to seek compensation from "Old GM," where there probably would be nothing left to pay their claims.
Sandy Esserman, an attorney representing people with asbestos-related claims against GM, said the court needs to make sure that future asbestos victims are taken care of.
"Someday, a few years from now, somebody is going to get sick and die because of asbestos," Esserman said. "Where are they going to go?"
Meanwhile, three of GM's unsecured bondholders are objecting to the sale, claiming that they are entitled to more in exchange for their investments in the company.
Attorneys representing the bondholders were scheduled to make their arguments on Thursday morning.
GM, whose June 1 filing for bankruptcy protection was the fourth-largest in US history, is hoping to avoid a lengthy court battle over the sale.
Last month, objections from bondholders and other groups dragged out rival Chrysler LLC's hearing on its sale for three days.
Wednesday marked day two of the GM hearing.
The objectors in the Chrysler case also appealed the sale ruling all the way to the US Supreme Court, further delaying its closing, before it ultimately went through.
Earlier in Wednesday's hearing, Harry Wilson, a senior member of President Barack Obama's auto task force, testified that the US government will not continue to finance GM operations past July 10 if the automaker does not get approval for its sale plan by then.
Wilson testified for more than three hours Wednesday, describing how Treasury officials came to the conclusion that the sale of GM's assets to a new company was the best option.
Wilson said the government decided to put in place the sale deadline, because numerous experts agreed that GM could not survive a drawn-out restructuring process.
And if the government did not give the automaker a funding deadline it risked funneling even more taxpayer money into GM without a guarantee of success, he said.
The task force member also said that the government expected eventually to sell its 60-percent stake in the new company, and an initial public offering of "New GM" shares would occur next year. As part of a deal brokered with the auto task force, the US government will get a 60-percent stake in the new company.
The Canadian government, which also has contributed billions in aid, will get a 12.5 percent stake, while the United Auto Workers union will take a 17.5 percent share to fund its health-care obligations. Unsecured bondholders receive the remaining 10 percent.
Existing GM shareholders are expected to be wiped out.
The remaining pieces of the company, including some closed plants, will become the "Old GM" and be liquidated.
GM hopes to emerge as a leaner company, less burdened by debt and labor costs as it faces a severe recession that has sapped car and truck sales. Automakers have seen sales fall 37 percent over the first five months of the year.
The sale hearing, which drew hundreds of attorneys, picketing retirees and others to a Manhattan courthouse, kicked off on Tuesday with testimony from GM president and CEO Fritz Henderson, who also cautioned that the automaker's plan could fall apart if the sale did not go through by July 10.

Sleiman rules out any tolerance for security breaches
LAF announces all perpetrators in Aisha Bakkar clashes arrested

Daily Star staff
Friday, July 03, 2009
BEIRUT: President Michel Sleiman said on Thursday that security breaches should in no way be tolerated "especially since we are expecting a promising summer season." Sleiman told visitors the Lebanese Army and security forces have made "tremendous efforts to protect the Lebanese, prevent security breaches, and arrest perpetrators."
The president said the arrested people included some of those involved in sectarian clashes in Beirut.
The Lebanese Armed Forces (LAF) Command issued a statement on Wednesday announcing the arrest of all perpetrators who took part in Sunday's clashes in the Beirut neighborhood of Aisha Bakkar.
The LAF statement said 21 people had been arrested.
One woman, Zeina al-Meeri, 30, was killed and 11 wounded on Sunday night when clashes broke out between Future Movement and Amal supporters in the mixed Sunni-Shiite neighborhood of Aisha Bakkar. Sunday's incidents were a bitter reminder of similar fighting in May 2008, when pro-government gunmen battled with armed supporters of the Hizbullah-led opposition, which includes Amal. The clashes killed at least 65 people. The clashes erupted after the government issued a decree to dismantle Hizbullah's private telecommunications network and sack the head of security at the Beirut airport.
Head of the Amal Movement Speaker Nabih Berri said all those involved in the Aisha Bakkar fighting should be punished. "Zeina al-Meeri's blood will not go in vain," Berri told An-Nahar newspaper in comments published on Thursday. Berri said "transparent investigations" should be launched into the incident.
Meanwhile, Interior Minister Ziyad Baroud said the Lebanese should trust their security services. "Security services should be able to protect all Lebanese citizens regardless of political or security circumstances," the minister told Voice of Lebanon radio station. "The security and safety of the people falls within the responsibilities of the state," Baroud added. He described the events in Aisha Bakkar as "unacceptable" and warned against the recurrence of such clashes. Baroud also voiced hope that the cabinet would be formed "as soon as possible" amid a calm atmosphere. Future Movement MP Nuhad Mashnouq said Beirut MPs across the political spectrum would continue to work until they can declare the capital "a safe city."
On Tuesday, a delegation of Beirut lawmakers discussed with caretaker Defense Minister Elias Murr means by which security in the capital could be "permanently preserved."
Murr received in his office at the Defense Ministry in Yarze MPs Ammar Houri, Mohammad Qabbani, Imad al-Hout, Atef Majdalani, Nuhad al-Mashnouq, Jean Ogassapian, Hani Qobeissy and Nayla Tueni. The MPs urged Murr to declare Beirut as a "safe city free of arms."
In an interview with the Central News Agency on Wednesday, Mashnouq said lawmakers "will accept no compromise and will not tackle the issue lightly, especially when innocent civilians are being killed, such as during the recent clashes in Aisha Bakkar neighborhood."
He said that a meeting would be held in the Sunni seat of Dar al-Fatwa, "within the next few days," to discuss sectarian clashes in the capital.
Mashnouq described the meeting with Murr as "very positive," and added that the interior minister had promised the MPs that he would discuss their proposal to declare Beirut an arms-free city with the Lebanese Army. The MP added that Murr also expressed readiness to help. Mashnouq explained that the Beirut MPs "demanded that the army take decisive and firm measures to prevent such incidents from occurring again, and take precautionary measures in sensitive spots where clashes could erupt."
He added that Meeri's killers "are well-known, and are involved in other crimes" "We will continue working hard until all those responsible for this incident are accountable," he added. - The Daily Star

Al-Hariri’s Government and the Quartet “Umbrella”
Fri, 03 July 2009
Zuheir Kseibati
Regionally, Lebanon is going through the optimal moment for cementing its stability, but it is not necessarily in accordance with the aspirations of some Lebanese sides that were disappointed by the results of the parliamentary elections. This moment represents the beginning of a new era in the region, characterized mainly by the pullout of the US Army from the Iraqi cities in a prelude for ending the occupation. It is also characterized by a deal or agreement that Washington is getting ready to conduct with Israel to end the predicament of the settlement activities, which obstructs President Barack Obama’s plan to revive the peace process and end the Israeli-Palestinian conflict.
From Iraq to Palestine, regardless of the cost of the US pullout from the Iraqi cities or the price in return for freezing the Jewish settlement activities, the juncture involves Lebanon because Iran, which sponsors its Lebanese allies, is threatened to lose the “occupation card” from Iraq to Gaza and the West Bank. This loss will weaken Iran’s pretext or ability to use arenas that are far from Tehran to wage its wars with the “arrogant powers.”
No less significant in the titles of this new era is the fact that Iran – which the Obama Administration is awaiting on the dialogue table – is not the same Iran that existed prior to the presidential elections which entrenched Mahmoud Ahmadinejad in this position. It can still claim to be a capable state, but the image of a just state has come under so many doubts that its image as a model for its allies in the Arab region is shaken. Most importantly, they cannot rule out of their calculations – both in Palestine and Lebanon and Iraq – the ability of the Iranian “pragmatism” to pay the bill of the dialogue with Washington, if it were to succeed. Even if this dialogue is crowned with success, it would not survive more than one year.
Lebanon is concerned with all these changes, most importantly the renewed momentum of the Saudi-Syrian cooperation, which seems to be one of two wings of a quartet umbrella, while the second win is represented by the American-French [cooperation] to boost Lebanese stability in the period that followed the expiry of the Doha Agreement, and to preserve its security in order to avoid the huge repercussions of the new regional era.
While the Saudi-Syrian cooperation seeks to promote the Arab aspect of the Lebanese issue, under the ceiling of initiative of the Servant of the Two Holy Shrines King Abdallah Bin Abd-al-Aziz for inter-Arab reconciliations, Washington and Paris continue the march of complete normalization with Damascus, so as to encourage it support of the stability of the Lebanese as a separate entity, and entice by a partnership whose revenues will give Damascus much more than it gains through its alliance with Tehran. It is a policy to break up this alliance step by step. The American-French praise of the regional role of Syria is an indication of the Washington and Paris satisfaction with what Damascus has offered with regard to the Lebanese and Iraqi and perhaps the Palestinian dossiers. Most importantly is the call for Syria for more: Obama is in a hurry to reach solutions on all tracks: from the Gulf to Palestine.
During his visit to Beirut, Petraeus, the commander of the Multi-National Forces in Iraq, said that the Obama administration is also in a hurry to form the government headed by Saad al-Hariri, which the head of the parliamentary majority wants to be a national unity government.
Therefore, this government will not exclude the allies of Damascus and Tehran. Its ministerial platform has three dimensions: from construction to facing the challenges and any Israeli aggression. The aggression will remain a major source of apprehension because the core of Netanyahu’s “program” transcends the search for a victory for his government. It is rather about reshuffling the regional cards and revoking the American pressures aimed at accelerating a settlement upon the two-state solution.
The question is: Will the opposition in Lebanon facilitate the mission of Saad al-Hariri amid his reassurances that his presence at the head of the government will make him a prime minister of a government for all the Lebanese, and that he will seek to reconcile the program of the majority and the concerns of the minority? If all indications point to a creative formula in order to bypass the dilemma of part of the opposition’s demand to obtain a “guaranteeing third” (a blocking one) in the government, the wager remains on the role of President Michel Sleiman in his capacity as an arbitrator who will balance between consensus and democracy.
In brief, the 8 March group realizes that the prime minister tasked with forming the government – along with the 14 March group – will not raise the issue of Hezbollah’s arms except in the framework of a national dialogue. As such, the blocking third loses its raison d’etre. The most important priority of the majority also tops the agenda of the Saudi-Syrian communication, whose recent momentum coincided with a Saudi-Syrian summit and a Saudi-Egyptian summit, with two days separating them. Most important is indeed the willingness to contain the repercussions of the regional events, and prevent Israel and non-Arab sides from manipulating the weak points to settle certain calculations.
Completing the last steps of political normalization between Lebanon and Syria requires inevitably opening a new chapter between Damascus and Saad al-Hariri who does not seem afraid of, as he has expressed his willingness to shoulder the responsibilities imposed by the prime minister.
The test of mutual concessions awaits everyone to avoid obstructing the government. But the fear remains from harmed sides if they fail to foil the birth of Al-Hariri’s government. The major fear is if the Palestinian reconciliation is thwarted during its last stage, if sedition is stirred up again in Iraq, and if Lebanon is once again used as an arena.

Saudi Arabia, Syria, Iran…and Lebanon
Fri, 03 July 2009
Walid Choucair
Western and Arab states that have become engaged in contacts to normalize relations with Syria have relied on a number of signs that they believe Damascus has offered to indicate its readiness to distance itself from Iran. This is what these countries are concerned about at present, as they are ready to gauge Iran’s readiness to effect a settlement with the west and with its Arab neighbors, or continue the confrontation over the nuclear issue and Tehran’s regional influence, which has grown in recent years.
It is natural that returning Syria to the Arab fold be the goal of Saudi-Syrian contacts, which have been extremely active in the last two weeks. This is after Lebanon’s parliamentary elections took place in satisfactory fashion to all, in terms of completing the process itself in an acceptable fashion, or in terms of the results and the victory by the 14 March coalition (because this is what concerned Arab and western states). The backdrop to the Saudi-Syrian reconciliation, on an initiative by King Abdullah bin Abdel-Aziz, was to return Syria at any price. This is because the Gaza war proved, in parallel with the coming of a new US administration and a change in US policy toward the region, that there is no place for Arab states in the new international equation, unless they get their house in order.
However, the leaders of all countries concerned with the issue, who have hoped that steps by Damascus would gradually distance it from Tehran, face the following question: are the Syrians able to move far enough away from its Iranian ally, as desired by the others? This in turn leads to another question: after the domestic (electoral) crisis in Iran, which the regime appears able to overcome, is the country in a position that allows it to be “tolerant” with its allies if they choose to distance themselves? Will this crisis push Iran toward a hard line position and retaining its foreign policy bargaining chips, as hinted by its reactions to the positions that were expressed vis-à-vis the crisis? Or will the crisis prompt Tehran to practice more external flexibility, after having shown the opposite with regard to the domestic front?
Experience has shown that Damascus’ signals, up to now – independence from Iranian policy, its indirect negotiations with Israel, the Barack Obama administration’s openness to Damascus, or the Saudi-Syrian reconciliation – have all taken place under the “ceiling” of understanding with Iran. Any divergences along the way between the two allies have remained under this ceiling as well, since each of them needs the other.
The western and Arab attempts to peel off Syria from Iran, in Lebanon, are no exception to this rule. The overlap between Iranian and Syrian influence in Lebanon has reached a point where taking back things the way they were will require a high cost that Damascus seeks, to justify to itself and to its ally, the acceptance of taking the required distance from its ally of the last four years, during the tenure of President Mahmoud Ahmadinejad. Are western and Arab states, led by Saudi Arabia, ready to pay this price?
Damascus has already justified its indirect negotiations with Israel, with its Iranian ally and its allies in Lebanon (Hizbullah) that it received messages through Turkey that Israel (under former Prime Minister Ehud Olmert) was ready for negotiations that would end with the recovery of the Golan Heights, and western openness to Syria. Most likely, Damascus requires a huge pretext to continue the openness between it and the Arab countries concerned with completing the reconciliation with Damascus, to justify its readiness to put distance between itself and Iran in Lebanon; alternatively, it requires Iranian support for a settlement that it intends to conduct with Saudi Arabia, followed by Egypt. This pretext is for it to regain its influence in Lebanon, and with the country’s political authorities, and end the negative ramifications it has experienced during the last four years, beginning with the assassination of former Lebanese Prime Minister Rafiq al-Hariri. In this case, the price is justified, to increase the political distance between Damascus and Tehran; it might convince the latter that the benefit from this ally deserves this settlement.
However, are these Arab and western countries ready to offer this many-sided reward to Damascus, while they continue to state, day and night, that there is no going back when it comes to Lebanon’s independence and sovereignty, and that there can be no return (politically) for Syria to managing Lebanon’s affairs, as it did in the past.
Therefore, taking advantage of the atmosphere of regional contacts for the sake of Lebanon’s stability assumes that Saudi Arabia, Syria or both should be prompted to produce demands and objectives that are more modest, with the difficulty of seeing Syria return fully to the Arab fold or regain its influence in Lebanon.

LCCC ENGLISH DAILY NEWS BULLETIN

LCCC ENGLISH DAILY NEWS BULLETIN
July 04/09

Bible Reading of the day
Holy Gospel of Jesus Christ according to Saint John 20:24-29. Thomas, called Didymus, one of the Twelve, was not with them when Jesus came. So the other disciples said to him, "We have seen the Lord." But he said to them, "Unless I see the mark of the nails in his hands and put my finger into the nailmarks and put my hand into his side, I will not believe." Now a week later his disciples were again inside and Thomas was with them. Jesus came, although the doors were locked, and stood in their midst and said, "Peace be with you." Then he said to Thomas, "Put your finger here and see my hands, and bring your hand and put it into my side, and do not be unbelieving, but believe." Thomas answered and said to him, "My Lord and my God!" Jesus said to him, "Have you come to believe because you have seen me? Blessed are those who have not seen and have believed."

Free Opinions, Releases, letters & Special Reports
Al-Hariri’s Government and the Quartet “Umbrella”/By: Zuheir Kseibati 03/07/09

Saudi Arabia, Syria, Iran…and Lebanon. By: Walid Choucair 03/07/09
Gad Elmaleh's absence is yet another missed opportunity in Lebanon. The Daily Star 03/07/09
Iran's leaders fear their own people most. By Shaazka Beyerle 03/07/09
Lebanon’s golden opportunity-Future News 03/07/09

Latest News Reports From Miscellaneous Sources for July 03/09
Kouchner in Lebanon Next Week in Support of Democracy-Naharnet
German foreign minister lines up Mideast tour-AFP
Security and Defense: Hizbullah's rise from the ashes-Jerusalem Post
No sign Iran seeks nuclear arms: new IAEA head-Reuters
Eddé: No one can offer Hezbollah concessions regarding its arms on our behalf. Now Lebanon
Saudi-Syrian summit Monday, Hizbullah out of government-Future News
Geagea: complying with March 8 demands blocks democracy-Future News
Youssef denied rumors on Hariri’s visit to Syria-Future News
Tehran uses Beirut as a ‘mail box’ for political messages-Future News
Jumblatt: Hariri can rule through Saudi-Syrian consensus-Future News
Hamade: no one can force us to make concessions-Future News
Gemayel: to normalize relations with Syria cautiously-Future News
Syria Sets Conditions, Wants 'Price' to Facilitate Deal on Lebanon Government-Naharnet
Syrian-Saudi Summit on Lebanon, Region Likely on Monday-Naharnet
Opposition Again Presses for Veto Power-Naharnet
Jumblat: PM-Designate Governs Through Consensus, Not Against Syria-Naharnet
Gemayel: We Won't Forget the Past, We Need Guarantees from Syria
-Naharnet
Hizbullah Will Take Part in Cabinet, Denying Reports that Say Otherwise
-Naharnet
Cabinet Knots: One Catholic, Another is Aoun's Desire to Bring His Son-in-Law into Government
-Naharnet
Hariri Asks Miri's Family to Trust the State and its Institutions
-Naharnet
France Informs Syria its Rejection of Veto Power in Lebanon Government
-Naharnet
Sison: We Are Proud to Support Lebanon's Economic Strength, Key Institutions
-Naharnet
Sikorsky Helicopter in Service
-Naharnet
Hizbullah: Israel Prime Suspect in Lebanon Crimes, Ban Should Have Condemned it
-Naharnet
Geagea: Those Calling for Dialogue with Syria are Disregarding Martyrs' Sacrifices
-Naharnet
Soaid: Hariri's Visit to Syria before a Cabinet Shape-Up Is 'Unacceptable'
-Naharnet
Hariri wants to include 'broadest assortment' of parties in cabinet-Daily Star.
Lebanese man gets 25 years for arms dealing-Daily Star
Hizbullah slams Ban's 'extreme bias' in 1701 report-Daily Star
Sleiman rules out any tolerance for security breaches-Daily Star
Capital intelligence raises Lebanon's rating to stable-Daily Star
Lebanon again plagued by power rationing amid tourist influx-Daily Star
ISF arrests suspects in armed robbery of AUB students-Daily Star
Iran announces more arrests over election unrest-Daily Star

ddé: No one can offer Hezbollah concessions regarding its arms on our behalf
July 3, 2009 /Now Lebanon/“No one has the right to offer Hezbollah concessions regarding its arms on our behalf,” National Bloc party leader Carlos Eddé said on Friday, adding that Hezbollah uses intimidation tactics to reach its goals. In an interview with MTV, the bloc leader accused most countries of interfering in Lebanon “on different levels,” while saying that the US and France present their aid to Lebanese state institutions, not to specific political parties. “Our relations with Saudi Arabia are open and transparent,” Eddé said, “unlike the Iranian and Syrian interference.”

Gad Elmaleh's absence is yet another missed opportunity in Lebanon
By The Daily Star
Friday, July 03, 2009
Editorial
Gad Elmaleh, "the funniest man in France," will not be tickling audiences this month at the Beiteddine Festival. Last Saturday, the French stand-up comedian and actor, of Jewish-Moroccan descent, announced he had cancelled his performances in Lebanon because of security concerns.
The story behind Elmaleh's absence kicked off last week when Hizbullah's television affiliate Al-Manar published a photo of the comedian next to a photo of an Israeli soldier in full combat attire bearing his likeness. The accusations began: Elmaleh is an avowed Zionist devoted to Israel's protection; he served in the Israeli army for four years; he participated in campaigns in both the Gaza Strip and Lebanon. Whether or not these charges are true - organizers of the festival were quick to call the photo a forgery, and Elmaleh's manager flatly denied the claims - the argument taking place is legitimate. No Lebanese needs reminding of why Israeli soldiers are not welcome in our country. Timing has further complicated matters: Elmaleh's first performance was scheduled for the weekend of the third anniversary of the 2006 July War, from which Lebanon still bears considerable scars.
But with a lack of evidence to prove or disprove the accusations, we are left to speculation. Even if Elmaleh at one time served in the Israeli army - and this is indeed an if - what would his performance in Lebanon have meant? Might it at least have indicated a reciprocal curiosity and the ability to compartmentalize popular amusement from politics? As a world-famous comic and actor, Elmaleh stands on a public stage, one that is neither Israeli nor Jewish. His medium is comedy not propaganda, laughs not malice.
Although the absence of one comedian hardly dents the esteemed programs of Lebanon's many summer festivals, it underscores to the crude and dated rubric by which this country's partisan campaigns are waged and its political victories are measured. Lebanon's ruling class is buried up to its ears in politicking and blind to creative problem solving. What if, for example, Walid Jumblatt, whose wife runs the Beiteddine festival, had offered to take Elmaleh and donate his shows' proceeds to one of Lebanon's overcrowded and underserviced Palestinian refugee camps? What's the more principled stance: building awareness or further engendering enmity? The consequences of this deficiency are far broader than Elmaleh or the billing of summer festivals. The backwardness of Lebanon's political jockeying has prevented the country from moving ahead on issues that desperately require an innovative approach, like a long-running energy crisis or a haphazard environmental protection policy. The Elmaleh affair amounts to an opportunity lost, for the comedian, his prospective audience, and a country struggling to find a new way forward.

Syria Sets Conditions, Wants 'Price' to Facilitate Deal on Lebanon Government
Naharnet/Syria, not only has set conditions, but reportedly wants a price beforehand to facilitate formation of a new Lebanese government.
Pan-Arab daily al-Hayat on Friday, which carried the report, said Syria has proposed that the various Lebanese parliamentary blocs visit Damascus to strike a deal on the formation of a national unity government. It said Syria is seeking to reach an agreement in Damascus similar to that of Doha in May 2008 which ended a long-running political crisis that nearly drove the country to a new civil war. The daily An Nahar, meanwhile, said the Syrian conditions are "impossible to implement." Among these conditions, An Nahar said, was a visit to Damascus by Prime Minister-designate Saad Hariri as part of a tripartite summit between Lebanon, Syria and Saudi Arabia prior to government formation.  It said the basket of conditions appeared to be closer to pushing the March 14 coalition into relinquishing the victory after achieving a majority in Parliament. While the opposition declined to comment on media leakage about Saudi-Syrian contacts, sources concerned with the issue told al-Hayat that Damascus was in a rush toward normalization of ties. Beirut, 03 Jul 09, 08:22

Opposition Again Presses for Veto Power
Naharnet/The Hizbullah-led Opposition continued to press for veto power and proportional representation in the new government contrary to the belief that the minority March 8 coalition was willing to be lenient with that issue, pan-Arab daily al-Hayat said Friday. It said nearly all the Opposition parliamentary blocs have hinted during consultations with Premier-designate Saad Hariri on the formation of a new government that the March 8 forces is not holding on to veto power. Most of these forces, however, re-emerged to demand veto power following talks on Sunday between Syrian President Bashar Assad and Saudi envoy Prince Abdul Aziz in the presence of Saudi Information Minister Abdul Aziz Khoja and Syrian Foreign Minister Walid Muallem, Al-Hayat reported. It said the Opposition clearly wanted to send a message to the Lebanese that Syrian-Saudi contacts have so far not yielded the desired results and that more effort is needed to come out with the perfect form of government. Opposition sources declined to go into details, saying that its final position will only emerge after mulling over Hariri's proposals that should contribute to opening a new page between March 8 and March 14 forces. Beirut, 03 Jul 09, 10:33

Syrian-Saudi Summit on Lebanon, Region Likely on Monday

Naharnet/A Syrian-Saudi summit is expected to take place in Damascus on Monday, Egypt's official Middle East News Agency (MENA) said.
It quoted an Arab diplomatic source in Damascus as saying that Saudi King Abdullah Bin Abdul Aziz will visit Damascus next Monday for talks with Syrian President Bashar Assad that would tackle inter-Arab relations as well as regional issues, particularly Lebanon. MENA said the summit – which is expected to focus on Lebanon in the wake of efforts to form a government of national unity – would bridge the gap in Syrian-Saudi relations which deteriorated since the Feb. 14, 2005 assassination of former Premier Rafik Hariri.
Al-Mustaqbal newspaper, however, was skeptical about the Syrian-Saudi summit, saying it is still unconfirmed. It quoted Arab diplomatic sources as saying that the convening of the summit is dependent on outcome of talks to be held in Damascus Friday between Syrian officials and Saudi envoys Prince Abdul Aziz and Information Minister Abdul Aziz Khoja.
The sources said the Saudi side expects to come back with a clear response from Syria to a number of specified questions. Meanwhile, Al-Akhbar daily quoted a diplomatic source as saying that no specific date has been set for the summit. Beirut, 03 Jul 09, 09:10

Germany: Peaceful Lebanon Polls, Improved Beirut-Damascus Ties 'Window of Opportunity'

Naharnet/Germany said Friday that there were several rays of hope in the Middle East, including the peaceful Lebanese parliamentary elections and improved relations between Lebanon and Syria. German foreign ministry spokesman, Andreas Peschke, said such factors present a "window of opportunity." He told a regular government news conference that Foreign Minister Frank-Walter Steinmeier will tour the Middle East next week seeking to lend momentum to U.S. President Barack Obama's drive to jumpstart the dormant peace process. Steinmeier will visit Israel and meet Palestinian officials in the West Bank on Monday before traveling to Syria and Lebanon on Tuesday. "We have had new momentum in the Middle East peace process since the new government took office in Washington and support its fresh efforts to reach a two-state solution and a return to negotiations," Peschke said. He noted the crucial role neighboring countries must play in the process and said Germany saw several rays of hope in the region including the elections in Lebanon and improved ties between Beirut and Damascus -- factors that present a "window of opportunity." Peschke said Germany was pursuing a Middle East policy, in close consultations with its European partners and the United States, that moved away from "slogans" and focused on practical assistance on the ground. Such steps include development assistance for the Palestinians and training for security forces in the territories to help prepare for eventual statehood. Steinmeier will assess the progress of such projects while in the West Bank.(AFP-Naharnet) Beirut, 03 Jul 09, 14:55

Gemayel: We Won't Forget the Past, We Need Guarantees from Syria

Naharnet/Phalange party leader Amin Gemayel said Friday that Syria has to prove its good intentions towards Lebanon by dismantling armed Palestinian bases and demarcating the border.
"We want good relations (with Syria) and we support technical visits between the two countries. But we need to know where are we heading and what are the guarantees," Gemayel told LBC TV network. He said Damascus should give guarantees and show its good intentions by not resorting to the obstruction of Lebanese government work, dismantling armed Palestinian bases, demarcating the border, unveiling the fate of missing Lebanese and recognizing the Lebanese identity of Shebaa farms area. "The difference between us and Syria is that it wants a relationship based on turning the page on the past," the Phalange leader told LBC. "Our stance is clear: We didn't make all these sacrifices to neglect the country again," Gemayel said. "We need to know who killed the martyrs." On the Syrian-Saudi summit that is expected to take place in Damascus on Monday, Gemayel said: "It's better for the summit to be held in Riyadh if Lebanon wants to participate in it." Beirut, 03 Jul 09, 12:26

Jumblat: PM-Designate Governs Through Consensus, Not Against Syria

Naharnet/Progressive Socialist Party leader Walid Jumblat called for the restoration of a climate of trust between Lebanon and Syria by focusing on the issue of bilateral relations.
In remarks published by the daily As Safir on Friday, Jumblat said Prime Minister-designate Saad Hariri "can govern, but not against Syria and not by hatred."
He said Hariri also "governs by Saudi-Syrian consensus which we want as an introduction to Saudi-Iranian consensus for the sake of avoiding the dangers of a sectarian rift, particularly in Lebanon."Jumblat advised Hariri to intensify his meetings with Hizbullah chief Sayyed Hassan Nasrallah and Parliament Speaker Nabih Berri, urging him to "follow the example of the process of dialogue, rapprochement and reconciliation" between Hizbullah and the PSP. Beirut, 03 Jul 09, 13:09

Hizbullah Will Take Part in Cabinet, Denying Reports that Say Otherwise

Naharnet/Hizbullah official Nawwaf Mousawi denied reports that the party planned to give up its share in the new government in favor of its allies. Musawi was responding to a report carried by the Central News Agency (CAN) on Thursday saying Hizbullah's Shoura Council has decided not to take part in the next Cabinet. He stressed that Hizbullah is for "real and effective participation" in the new government of national unity. CAN, citing sources close to the Opposition, said Hizbullah's decision not to participate in the government was to guarantee a larger measure of freedom of movement and reduce the pressure The report cited sources close to the opposition as saying that the party's decision to stay out of the government was aimed at avoiding any pressure on it with regards to implementation of U.N. Security Council Resolution 1701. Beirut, 03 Jul 09, 12:13

Cabinet Knots: One Catholic, Another is Aoun's Desire to Bring His Son-in-Law into Government
Naharnet/Government formation once again hit obstacles. This time they are related to the Roman Catholic seat in the new Cabinet as a result of the jam of candidates who stood for two Catholic posts. MP Michel Pharaon in this regard insisted on being part of the new government for two reasons: The first is the need to correct the error that was committed by the post-Doha government and return to the representation of Beirut Christian blocs as usual since the independence. The second is related to the Catholic confidence in him that brought him into Parliament. Pharaon told As Safir newspaper in remarks published Friday that Free Patriotic Movement leader Gen. Michel Aoun's share in the new Cabinet should be agreed upon with his allies in the Opposition as part of the 10 ministers they will get. In turn, Zahle in the Heart bloc leader MP Nicola Fattoush stressed that his bloc is among the biggest in Parliament and "is entitled to receive its rights." The same thing goes to Aoun who intends to nominate a Catholic, let alone President Michel Suleiman's share in this respect. On the Opposition side, well-informed sources told al-Liwaa newspaper that among the obstacles was Aoun's insistence to bring his son-in-law Jebran Bassil into the government and Hizbullah's insistence to employ former MP Ossama Saad in the new Cabinet. Beirut, 03 Jul 09, 11:54

Hariri Asks Miri's Family to Trust the State and its Institutions

Naharnet/Premier-designate Saad Hariri paid condolences to the family of Zeina Miri, who was killed during clashes between Amal and al-Mustaqbal movement supporters in the Beirut neighborhood of Aisha Bakkar on Sunday. Hariri urged the victim's family on Thursday "to trust the state and its institutions like the army and security forces" and hoped the assailants would be brought to justice. Hariri had just returned to Beirut after a 24-hour visit to Saudi Arabia on Wednesday. Progressive Socialist Party leader Walid Jumblat also paid condolences to Miri's family and stressed that "only the state and the army can protect us." Jumblat also vowed to "do everything possible to arrest the criminals" and promised that "justice will take its course."
The army said on Thursday it has arrested 21 people over the fighting in Aisha Bakkar. "All 21 participants in the riots and shootings that led to a casualty, injuries and property damage in the district of Aisha Bakkar were arrested," the army said in a communiqué. Beirut, 03 Jul 09, 08:20

France Informs Syria its Rejection of Veto Power in Lebanon Government

Naharnet/France rejects veto power in any new Lebanon government, stressing that the parliamentary majority has the right to proper representation in the Cabinet.
The French position was conveyed to Syrian President Bashar Assad and other Syrian officials by French President Nicola Sarkozy's political chief of staff Claude Gueant during a recent visit to Damascus, according to pan-Arab daily al-Hayat. It quoted political sources as saying that Damascus was surprised by Gueants' tough attitude, saying that while the French official hailed Syria's role in facilitating Lebanese parliamentary elections, he failed to adopt Damascus' views which support its allies' demand for veto power.
The sources believed that Damascus "wants everything, without giving anything in return." Beirut, 03 Jul 09, 10:00

Sison: We Are Proud to Support Lebanon's Economic Strength, Key Institutions

Naharnet/U.S. Ambassador Michele Sison said during a celebration of the 233rd anniversary of the United States' independence that her country is proud to support the Lebanese Army and Internal Security Forces. "America is proud to be a partner in supporting Lebanon's economic strength, in supporting Lebanon's education system and civil society. We are also proud to support the key Lebanese institutions of the Army and the Internal Security Forces," Sison told more than 1000 guests at the U.S. embassy on Thursday.
"To our Lebanese guests tonight, let me emphasize that in America, you will continue to find a strong friend and partner, shared values, and an unwavering commitment to your freedom and democracy," she said. Sison also hoped that the celebration would become tomorrow's partnership. "There's nothing we can't accomplish, no challenge we can't meet, if we work together toward common goals and seek common ground." The attendees included national and local government officials, business executives, religious leaders, Lebanese Armed Forces and Internal Security Forces officers, media personalities, cultural figures and alumni of U.S. government-sponsored programs. Foreign Minister Fawzi Salloukh represented President Michel Suleiman in the ceremony. MP Ali Bazzi was the representative of Speaker Nabih Berri while caretaker Premier Fouad Saniora sent Minister Nassib Lahoud to represent him. MP Bassam al-Shab represented Prime Minister-designate Saad Hariri. Among the invited guests were those who work with USAID, the Middle East Partnership Initiative and Public Diplomacy on projects such as small business development, leadership training, civil society promotion, transparency, and combating trafficking in persons. Beirut, 03 Jul 09, 07:54

ISF arrests suspects in armed robbery of AUB students

Daily Star staff/Friday, July 03, 2009
BEIRUT: The Internal Security Forces (ISF) arrested late on Wednesday and early Thursday two members of a gang who ambushed and robbed, one day earlier a group of six students from the American University of Beirut. The six students, who were abducted Wednesday by a group of gunmen in the mountainous region of Aqoura, were released 90 minutes later by their captors in the nearby Homsya town after being stripped of their possessions.
"The Information Branch of the ISF succeeded in arresting one of the members of the gang at 11:30 p.m. on Wednesday on board of a navy blue Grand Cherokee vehicle and arrested another one on Thursday," the ISF statement added.
According to the ISF statement, 200 grams of hashish were found in the possession of one of the kidnappers.
On Wednesday, kidnappers exchanged fire with security forces after being tracked until the Britel village of Baalbek and managed to evade pursuit.
The students were on their way to conduct an environmental study in the area when their cars, a Mercedes Benz and a Kia Sportage, were ambushed at 8:30 a.m. by the perpetrators, who were driving a Range Rover.
According to the students, the kidnappers pretended to be security officers and warned them against informing security forces of the incident. The incident occurred amid a spate of car thefts across the country.
AUB's dean of student affairs, Maroun Kisirwani, issued a statement on Thursday in which he confirmed that the six AUB students who were victims of an armed robbery in the Jbeil region one day earlier were "safe and sound."
"The six AUB students were conducting field work projects in the mountainous areas of Faraya-Mayrouba for a geology course they had signed up for, when they were robbed by gunmen of their car and personal belongings," the statement said.
Geology 229 is a course requirement for all geology majors and involves practical field work, during which students study the soil and rock formations of an area, submitting reports on their findings. The course is run by a professor who regularly supervises student groups at their field work site.
"The course has been offered at AUB for over a decade and course coordinators have been organizing such field work without running into any problems before," said Kisirwani. "The chosen area is considered a very safe and touristic area, and includes Lebanese army bases and vacation resorts. We deeply regret that our students were victims of such a crime, but are grateful for their safety. In any case, the university will follow up this breach of security with the authorities and adopt stricter measures in the future. Our students and their safety are our priority." - The Daily Star

Hizbullah slams Ban's 'extreme bias' in 1701 report

By Dalila Mahdawi /Daily Star staff
Friday, July 03, 2009
BEIRUT: Hizbullah on Thursday criticized UN Secretary General Ban Ki-moon over what the group called "extreme bias" toward Israel in his latest report on the implementation of Security Council Resolution 1701. "UN Secretary General Ban Ki-moon's recent report ... is extremely biased toward Israel and reinforces the unjust stances of [key Israeli ally] the US," a statement from the group said.
The statement made reference to US Deputy Assistant Secretary of State for Near Eastern Affairs Jeffrey Feltman, who on Wednesday told the Kuwaiti newspaper Al-Qabas that Hizbullah's arms continued to pose a threat to Lebanon and the Middle East as a whole.
In his tenth report on the implementation of Resolution 1701, which ended Israel's 34-day war on Lebanon in July-August 2006, Ban on Tuesday said he was "concerned at the Lebanese government allegations" that several Israeli spy cells had been recently discovered, saying Tel Aviv's covert operations could pose a threat to the delicate peace between the enemy neighbors.
At least 30 people in Lebanon have been detained on suspicion of collaborating with Israel since a high-profile campaign was launched earlier this year. At least 15 people, including two Lebanese security officials, have been formally charged.
But instead of condemning Israel's blatant aggression, Ban's report was "weak, timid and confusing," Hizbullah said.
It would have been appropriate for [Ban] to condemn the Israeli acts and hold the Zionist entity [Tel Aviv] fully responsible for these crimes and their consequences," added the statement. "The evidence submitted by Lebanon to the UN was sufficient to issue a strongly worded condemnation of Israel."
Ban's remarks did little to reflect the dangers that Israel's spy cells posed to Lebanon's national security and stability, even though investigations proved the Israeli collaborators had supplied Tel Aviv with detailed information about Lebanese officials and security establishments, as well as Hizbullah, the statement said.
"Through its spy networks in Lebanon, Israel is not only responsible for crimes and attacks committed during the July 2006 war ... it is also the prime suspect in many crimes against Lebanon's internal security," it said. The UN's credibility diminished with each report it issued regarding Israel, Hizbullah added.
The Shiite group reiterated its determination to continue its armed resistance. "The injustice of the US and the bias of the UN will not stop us from confronting dangers that threaten Lebanon," the statement concluded. Hizbullah's remarks come one day after Lebanon's Foreign Affairs Ministry issued a similar statement complaining Ban's report had not sufficiently addressed the "dangers" of the Israeli spy cells.
Ban said the discovery of the covert networks could pose a threat to the fragile peace between the enemy neighbors but refrained from condemning them "as being a threat to Lebanese sovereignty nor as a violation of the resolution," a statement from the ministry said on Wednesday. Ban's 17-page report urged the next Lebanese cabinet to renew its commitment to implementing Security Council Resolution 1701. As in earlier reports, the UN chief reiterated his call for Lebanon and Israel to abide by the resolution's obligations and cited a number of violations by both countries. Ban also called for the disarmament of Hizbullah, suggesting weapons smuggling in south Lebanon may have occurred. "To date, UNIFIL has neither been provided with, nor found, evidence of new military infrastructure or the smuggling of arms into [UNIFIL's] area of operations" in South Lebanon, the UN report said. "Bearing in mind that it is impossible to prove a negative, the unauthorized presence and smuggling of weapons into the area cannot ever be entirely excluded."
Lebanon's Foreign Ministry criticized the report as "unclear."

Lebanese man gets 25 years for arms dealing

Friday, July 03, 2009
NEW YORK: A Lebanese man convicted of agreeing to sell millions of dollars of weapons to leftist guerrillas in Colombia was sentenced to 25 years in prison on Wednesday. Tareq Mousa al-Ghazi, 62, was accused of taking part in the weapons deal with Monzer al-Kassar, a Syrian who was convicted of terrorism charges and sentenced in February. The deal turned out to be a US-backed sting operation that stretched from Lebanon to Spain and Romania. Ghazi was found guilty in federal court in March of three of four charges he faced, including conspiring to kill US officers and conspiring to acquire anti-aircraft missiles. During the trial, prosecutors said Ghazi took part in the deal thinking the weapons would go to the Revolutionary Armed Forces of Colombia, or FARC, and believed they would be used to kill Americans seeking to disrupt the cocaine trade. He was arrested in mid-2007 in Romania. Kassar, who prosecutors called one of the world's most prolific arms dealers, was sentenced to 30 years in prison. Moreno Godoy was sentenced to 25 years. - Reuters

Hariri wants to include 'broadest assortment' of parties in cabinet
PM-designate pays condolences in Aisha Bakkar

By Elias Sakr /Daily Star staff
Friday, July 03, 2009
BEIRUT: Prime Minister-designate Saad Hariri is determined to shape a national-unity cabinet that includes "the broadest assortment of political parties," sources close to the March 14 Forces told The Daily Star on Thursday. The sources added that the premier-designate has yet to reach an agreement concerning the make-up of the upcoming national-unity Cabinet
The sources said that news reports tackling the shape of the next government were "mere speculation," adding that Hariri was facing "obstacles" with regard to the distribution of ministerial portfolios and the allocation of shares. On Thursday, Hariri paid condolences to the family of Zeina al-Meeri, the victim of sectarian clashes between Amal and Future Movement supporters in the Beirut neighborhood of Aisha Bakkar on Sunday. Hariri urged the victim's family to trust the state's institutions and security forces, adding that he hoped the assailants would be brought to justice. Hariri had just returned to Beirut after a 24-hour visit to Saudi Arabia on Wednesday.
"Hariri traveled to Saudi Arabia for personal reasons," a source close to him told The Daily Star on Thursday.
In other news, Future Movement MP Ammar Houri confirmed on Thursday that the upcoming cabinet make-up would grant President Michel Sleiman the tipping voice, adding that the structure of next government would neither grant the opposition a blocking third nor the March 14 coalition a two-thirds majority.
Meanwhile, Hizbullah on Thursday denied news reports that the party planned to cede its share in the next Cabinet to its allies.
A report carried by the Central News Agency on Thursday said that Hizbullah's Shura Council decided during a recent meeting to refrain from participating in the next cabinet.
The report cited sources close to the opposition as saying that the party's decision not to take part in the government would secure it larger freedom of movement and reduce the pressure when it comes to the implementation of United Nations resolutions, especially UN Resolution 1701.
"Our position concerning government formation is clear to all and we will not comment on any media reports," Hizbullah MP Nawwaf al-Mousawi told The Daily Star Thursday
Hizbullah's MP Nawwar Sahili said on Thursday that the majority had offered the opposition several proposals regarding the formation of the next government, however he stressed that his party has not yet declared its approval or rejection of any of those suggestions.
Also commenting on the government formation, Lebanese Forces (LF) boss Samir Geagea criticized on Thursday "those who demanded that the March 14 coalition satisfy Damascus' allies requests," in reference to Lebanon's opposition groups. During a news conference at his residence in Maarab, Geagea said dialogue with Syria concerning the upcoming government was "unnecessary."  Geagea said that opposition groups calling for a dialogue with Syria, "overlooked the sacrifices of Lebanon's martyrs and undermined the country's sovereignty and independence. The LF leader said the opposition statements ignored the fact that the March 14 Forces won a majority of seats in Parliament.
Meanwhile, pan-Arab daily Al-Hayat said on Wednesday that Syrian President Bashar Assad had declared his readiness to meet with Lebanon's premier-designate Hariri during an expected Syrian-Egyptian-Saudi-Lebanese summit.
Earlier this week, French President Nicholas Sarkozy's political chief of staff Claude Gueant and his chief diplomatic adviser Jean-David Levitte sat down for talks with Assad and met with his Foreign Minister Walid al-Moallem. According to French Foreign Ministry spokesman Eric Chevallier, the talks took place "in a very constructive spirit and are part of the regular contacts with Syrian authorities and provided an opportunity for exchange on bilateral and regional issues."

GM lawyer urges quick approval of plan to sell assets, form new firm
Automaker's only option to the sale is liquidation - attorney

Friday, July 03, 2009/Bree Fowler
Associated Press
NEW YORK: Warning that the demise of General Motors Corp. would have a disastrous ripple effect over the US economy, an attorney for the automaker urged speedy approval of GM's plan to sell the bulk of its assets and emerge from court oversight as a new company. GM attorney Harvey Miller said in a bankruptcy court hearing Wednesday that the automaker's only option to the sale is liquidation. He noted the Treasury Department will cut off funding for the company's operations after July 10 if the sale is not approved by then.
No other investors have stepped forward with an alternate plan or to supply the more than $50 billion in financing the Treasury will have put into GM before all is said and done, Miller said.
"The economics in this case don't change if this sale doesn't get approved; they just get worse," Miller said.
He added that the resulting liquidation would place the future of GM's hundreds of suppliers in danger, as well as send the United States into an even deeper economic crisis.
GM's government-backed plan for a quick exit from Chapter 11 hinges on the sale plan, which would allow the automaker to leave behind many of the costs and liabilities that have made it unprofitable. Chapter 11 is a section of the bankruptcy law that protects a bankrupt company or individual from creditors to allow a restructuring.
Hundreds of parties including bondholders, unions, state officials, consumer groups and individuals have filed objections to the sale, threatening to hold up the process.
Closing arguments in the sale hearing began Wednesday afternoon with Miller's summation and continued into the evening with statements from the sale's opponents.
The hearing is scheduled to resume at 9 a.m. EDT (1300 GMT) Thursday. It was unclear when US Judge Robert Gerber will rule.
Tom Kennedy, an attorney for the International Union of Operating Engineers, United Steelworkers and IUE-CWA, said if the sale goes through it would lead to the elimination of benefits for the unions' retirees.
Consumer groups and several individuals with product-related liability claims against the company also are trying to block the sale because people with pending litigation against GM would be forced to seek compensation from "Old GM," where there probably would be nothing left to pay their claims.
Sandy Esserman, an attorney representing people with asbestos-related claims against GM, said the court needs to make sure that future asbestos victims are taken care of.
"Someday, a few years from now, somebody is going to get sick and die because of asbestos," Esserman said. "Where are they going to go?"
Meanwhile, three of GM's unsecured bondholders are objecting to the sale, claiming that they are entitled to more in exchange for their investments in the company.
Attorneys representing the bondholders were scheduled to make their arguments on Thursday morning.
GM, whose June 1 filing for bankruptcy protection was the fourth-largest in US history, is hoping to avoid a lengthy court battle over the sale.
Last month, objections from bondholders and other groups dragged out rival Chrysler LLC's hearing on its sale for three days.
Wednesday marked day two of the GM hearing.
The objectors in the Chrysler case also appealed the sale ruling all the way to the US Supreme Court, further delaying its closing, before it ultimately went through.
Earlier in Wednesday's hearing, Harry Wilson, a senior member of President Barack Obama's auto task force, testified that the US government will not continue to finance GM operations past July 10 if the automaker does not get approval for its sale plan by then.
Wilson testified for more than three hours Wednesday, describing how Treasury officials came to the conclusion that the sale of GM's assets to a new company was the best option.
Wilson said the government decided to put in place the sale deadline, because numerous experts agreed that GM could not survive a drawn-out restructuring process.
And if the government did not give the automaker a funding deadline it risked funneling even more taxpayer money into GM without a guarantee of success, he said.
The task force member also said that the government expected eventually to sell its 60-percent stake in the new company, and an initial public offering of "New GM" shares would occur next year. As part of a deal brokered with the auto task force, the US government will get a 60-percent stake in the new company.
The Canadian government, which also has contributed billions in aid, will get a 12.5 percent stake, while the United Auto Workers union will take a 17.5 percent share to fund its health-care obligations. Unsecured bondholders receive the remaining 10 percent.
Existing GM shareholders are expected to be wiped out.
The remaining pieces of the company, including some closed plants, will become the "Old GM" and be liquidated.
GM hopes to emerge as a leaner company, less burdened by debt and labor costs as it faces a severe recession that has sapped car and truck sales. Automakers have seen sales fall 37 percent over the first five months of the year.
The sale hearing, which drew hundreds of attorneys, picketing retirees and others to a Manhattan courthouse, kicked off on Tuesday with testimony from GM president and CEO Fritz Henderson, who also cautioned that the automaker's plan could fall apart if the sale did not go through by July 10.

Sleiman rules out any tolerance for security breaches
LAF announces all perpetrators in Aisha Bakkar clashes arrested

Daily Star staff
Friday, July 03, 2009
BEIRUT: President Michel Sleiman said on Thursday that security breaches should in no way be tolerated "especially since we are expecting a promising summer season." Sleiman told visitors the Lebanese Army and security forces have made "tremendous efforts to protect the Lebanese, prevent security breaches, and arrest perpetrators."
The president said the arrested people included some of those involved in sectarian clashes in Beirut.
The Lebanese Armed Forces (LAF) Command issued a statement on Wednesday announcing the arrest of all perpetrators who took part in Sunday's clashes in the Beirut neighborhood of Aisha Bakkar.
The LAF statement said 21 people had been arrested.
One woman, Zeina al-Meeri, 30, was killed and 11 wounded on Sunday night when clashes broke out between Future Movement and Amal supporters in the mixed Sunni-Shiite neighborhood of Aisha Bakkar. Sunday's incidents were a bitter reminder of similar fighting in May 2008, when pro-government gunmen battled with armed supporters of the Hizbullah-led opposition, which includes Amal. The clashes killed at least 65 people. The clashes erupted after the government issued a decree to dismantle Hizbullah's private telecommunications network and sack the head of security at the Beirut airport.
Head of the Amal Movement Speaker Nabih Berri said all those involved in the Aisha Bakkar fighting should be punished. "Zeina al-Meeri's blood will not go in vain," Berri told An-Nahar newspaper in comments published on Thursday. Berri said "transparent investigations" should be launched into the incident.
Meanwhile, Interior Minister Ziyad Baroud said the Lebanese should trust their security services. "Security services should be able to protect all Lebanese citizens regardless of political or security circumstances," the minister told Voice of Lebanon radio station. "The security and safety of the people falls within the responsibilities of the state," Baroud added. He described the events in Aisha Bakkar as "unacceptable" and warned against the recurrence of such clashes. Baroud also voiced hope that the cabinet would be formed "as soon as possible" amid a calm atmosphere. Future Movement MP Nuhad Mashnouq said Beirut MPs across the political spectrum would continue to work until they can declare the capital "a safe city."
On Tuesday, a delegation of Beirut lawmakers discussed with caretaker Defense Minister Elias Murr means by which security in the capital could be "permanently preserved."
Murr received in his office at the Defense Ministry in Yarze MPs Ammar Houri, Mohammad Qabbani, Imad al-Hout, Atef Majdalani, Nuhad al-Mashnouq, Jean Ogassapian, Hani Qobeissy and Nayla Tueni. The MPs urged Murr to declare Beirut as a "safe city free of arms."
In an interview with the Central News Agency on Wednesday, Mashnouq said lawmakers "will accept no compromise and will not tackle the issue lightly, especially when innocent civilians are being killed, such as during the recent clashes in Aisha Bakkar neighborhood."
He said that a meeting would be held in the Sunni seat of Dar al-Fatwa, "within the next few days," to discuss sectarian clashes in the capital.
Mashnouq described the meeting with Murr as "very positive," and added that the interior minister had promised the MPs that he would discuss their proposal to declare Beirut an arms-free city with the Lebanese Army. The MP added that Murr also expressed readiness to help. Mashnouq explained that the Beirut MPs "demanded that the army take decisive and firm measures to prevent such incidents from occurring again, and take precautionary measures in sensitive spots where clashes could erupt."
He added that Meeri's killers "are well-known, and are involved in other crimes" "We will continue working hard until all those responsible for this incident are accountable," he added. - The Daily Star

Al-Hariri’s Government and the Quartet “Umbrella”
Fri, 03 July 2009
Zuheir Kseibati
Regionally, Lebanon is going through the optimal moment for cementing its stability, but it is not necessarily in accordance with the aspirations of some Lebanese sides that were disappointed by the results of the parliamentary elections. This moment represents the beginning of a new era in the region, characterized mainly by the pullout of the US Army from the Iraqi cities in a prelude for ending the occupation. It is also characterized by a deal or agreement that Washington is getting ready to conduct with Israel to end the predicament of the settlement activities, which obstructs President Barack Obama’s plan to revive the peace process and end the Israeli-Palestinian conflict.
From Iraq to Palestine, regardless of the cost of the US pullout from the Iraqi cities or the price in return for freezing the Jewish settlement activities, the juncture involves Lebanon because Iran, which sponsors its Lebanese allies, is threatened to lose the “occupation card” from Iraq to Gaza and the West Bank. This loss will weaken Iran’s pretext or ability to use arenas that are far from Tehran to wage its wars with the “arrogant powers.”
No less significant in the titles of this new era is the fact that Iran – which the Obama Administration is awaiting on the dialogue table – is not the same Iran that existed prior to the presidential elections which entrenched Mahmoud Ahmadinejad in this position. It can still claim to be a capable state, but the image of a just state has come under so many doubts that its image as a model for its allies in the Arab region is shaken. Most importantly, they cannot rule out of their calculations – both in Palestine and Lebanon and Iraq – the ability of the Iranian “pragmatism” to pay the bill of the dialogue with Washington, if it were to succeed. Even if this dialogue is crowned with success, it would not survive more than one year.
Lebanon is concerned with all these changes, most importantly the renewed momentum of the Saudi-Syrian cooperation, which seems to be one of two wings of a quartet umbrella, while the second win is represented by the American-French [cooperation] to boost Lebanese stability in the period that followed the expiry of the Doha Agreement, and to preserve its security in order to avoid the huge repercussions of the new regional era.
While the Saudi-Syrian cooperation seeks to promote the Arab aspect of the Lebanese issue, under the ceiling of initiative of the Servant of the Two Holy Shrines King Abdallah Bin Abd-al-Aziz for inter-Arab reconciliations, Washington and Paris continue the march of complete normalization with Damascus, so as to encourage it support of the stability of the Lebanese as a separate entity, and entice by a partnership whose revenues will give Damascus much more than it gains through its alliance with Tehran. It is a policy to break up this alliance step by step. The American-French praise of the regional role of Syria is an indication of the Washington and Paris satisfaction with what Damascus has offered with regard to the Lebanese and Iraqi and perhaps the Palestinian dossiers. Most importantly is the call for Syria for more: Obama is in a hurry to reach solutions on all tracks: from the Gulf to Palestine.
During his visit to Beirut, Petraeus, the commander of the Multi-National Forces in Iraq, said that the Obama administration is also in a hurry to form the government headed by Saad al-Hariri, which the head of the parliamentary majority wants to be a national unity government.
Therefore, this government will not exclude the allies of Damascus and Tehran. Its ministerial platform has three dimensions: from construction to facing the challenges and any Israeli aggression. The aggression will remain a major source of apprehension because the core of Netanyahu’s “program” transcends the search for a victory for his government. It is rather about reshuffling the regional cards and revoking the American pressures aimed at accelerating a settlement upon the two-state solution.
The question is: Will the opposition in Lebanon facilitate the mission of Saad al-Hariri amid his reassurances that his presence at the head of the government will make him a prime minister of a government for all the Lebanese, and that he will seek to reconcile the program of the majority and the concerns of the minority? If all indications point to a creative formula in order to bypass the dilemma of part of the opposition’s demand to obtain a “guaranteeing third” (a blocking one) in the government, the wager remains on the role of President Michel Sleiman in his capacity as an arbitrator who will balance between consensus and democracy.
In brief, the 8 March group realizes that the prime minister tasked with forming the government – along with the 14 March group – will not raise the issue of Hezbollah’s arms except in the framework of a national dialogue. As such, the blocking third loses its raison d’etre. The most important priority of the majority also tops the agenda of the Saudi-Syrian communication, whose recent momentum coincided with a Saudi-Syrian summit and a Saudi-Egyptian summit, with two days separating them. Most important is indeed the willingness to contain the repercussions of the regional events, and prevent Israel and non-Arab sides from manipulating the weak points to settle certain calculations.
Completing the last steps of political normalization between Lebanon and Syria requires inevitably opening a new chapter between Damascus and Saad al-Hariri who does not seem afraid of, as he has expressed his willingness to shoulder the responsibilities imposed by the prime minister.
The test of mutual concessions awaits everyone to avoid obstructing the government. But the fear remains from harmed sides if they fail to foil the birth of Al-Hariri’s government. The major fear is if the Palestinian reconciliation is thwarted during its last stage, if sedition is stirred up again in Iraq, and if Lebanon is once again used as an arena.

Saudi Arabia, Syria, Iran…and Lebanon
Fri, 03 July 2009
Walid Choucair
Western and Arab states that have become engaged in contacts to normalize relations with Syria have relied on a number of signs that they believe Damascus has offered to indicate its readiness to distance itself from Iran. This is what these countries are concerned about at present, as they are ready to gauge Iran’s readiness to effect a settlement with the west and with its Arab neighbors, or continue the confrontation over the nuclear issue and Tehran’s regional influence, which has grown in recent years.
It is natural that returning Syria to the Arab fold be the goal of Saudi-Syrian contacts, which have been extremely active in the last two weeks. This is after Lebanon’s parliamentary elections took place in satisfactory fashion to all, in terms of completing the process itself in an acceptable fashion, or in terms of the results and the victory by the 14 March coalition (because this is what concerned Arab and western states). The backdrop to the Saudi-Syrian reconciliation, on an initiative by King Abdullah bin Abdel-Aziz, was to return Syria at any price. This is because the Gaza war proved, in parallel with the coming of a new US administration and a change in US policy toward the region, that there is no place for Arab states in the new international equation, unless they get their house in order.
However, the leaders of all countries concerned with the issue, who have hoped that steps by Damascus would gradually distance it from Tehran, face the following question: are the Syrians able to move far enough away from its Iranian ally, as desired by the others? This in turn leads to another question: after the domestic (electoral) crisis in Iran, which the regime appears able to overcome, is the country in a position that allows it to be “tolerant” with its allies if they choose to distance themselves? Will this crisis push Iran toward a hard line position and retaining its foreign policy bargaining chips, as hinted by its reactions to the positions that were expressed vis-à-vis the crisis? Or will the crisis prompt Tehran to practice more external flexibility, after having shown the opposite with regard to the domestic front?
Experience has shown that Damascus’ signals, up to now – independence from Iranian policy, its indirect negotiations with Israel, the Barack Obama administration’s openness to Damascus, or the Saudi-Syrian reconciliation – have all taken place under the “ceiling” of understanding with Iran. Any divergences along the way between the two allies have remained under this ceiling as well, since each of them needs the other.
The western and Arab attempts to peel off Syria from Iran, in Lebanon, are no exception to this rule. The overlap between Iranian and Syrian influence in Lebanon has reached a point where taking back things the way they were will require a high cost that Damascus seeks, to justify to itself and to its ally, the acceptance of taking the required distance from its ally of the last four years, during the tenure of President Mahmoud Ahmadinejad. Are western and Arab states, led by Saudi Arabia, ready to pay this price?
Damascus has already justified its indirect negotiations with Israel, with its Iranian ally and its allies in Lebanon (Hizbullah) that it received messages through Turkey that Israel (under former Prime Minister Ehud Olmert) was ready for negotiations that would end with the recovery of the Golan Heights, and western openness to Syria. Most likely, Damascus requires a huge pretext to continue the openness between it and the Arab countries concerned with completing the reconciliation with Damascus, to justify its readiness to put distance between itself and Iran in Lebanon; alternatively, it requires Iranian support for a settlement that it intends to conduct with Saudi Arabia, followed by Egypt. This pretext is for it to regain its influence in Lebanon, and with the country’s political authorities, and end the negative ramifications it has experienced during the last four years, beginning with the assassination of former Lebanese Prime Minister Rafiq al-Hariri. In this case, the price is justified, to increase the political distance between Damascus and Tehran; it might convince the latter that the benefit from this ally deserves this settlement.
However, are these Arab and western countries ready to offer this many-sided reward to Damascus, while they continue to state, day and night, that there is no going back when it comes to Lebanon’s independence and sovereignty, and that there can be no return (politically) for Syria to managing Lebanon’s affairs, as it did in the past.
Therefore, taking advantage of the atmosphere of regional contacts for the sake of Lebanon’s stability assumes that Saudi Arabia, Syria or both should be prompted to produce demands and objectives that are more modest, with the difficulty of seeing Syria return fully to the Arab fold or regain its influence in Lebanon.