LCCC ENGLISH DAILY NEWS BULLETIN
June 27/08

Bible Reading of the day.
Holy Gospel of Jesus Christ according to Saint Matthew 7,21-29. Not everyone who says to me, 'Lord, Lord,' will enter the kingdom of heaven, but only the one who does the will of my Father in heaven. Many will say to me on that day, 'Lord, Lord, did we not prophesy in your name? Did we not drive out demons in your name? Did we not do mighty deeds in your name?' Then I will declare to them solemnly, 'I never knew you. Depart from me, you evildoers.'Everyone who listens to these words of mine and acts on them will be like a wise man who built his house on rock. The rain fell, the floods came, and the winds blew and buffeted the house. But it did not collapse; it had been set solidly on rock. And everyone who listens to these words of mine but does not act on them will be like a fool who built his house on sand. The rain fell, the floods came, and the winds blew and buffeted the house. And it collapsed and was completely ruined." When Jesus finished these words, the crowds were astonished at his teaching, for he taught them as one having authority, and not as their scribes.

Free Opinions, Releases, letters & Special Reports
When a nation loses its wisdom. By Israel Harel. Haaretz 26/06/08
Algerian court to decide fate of Christian converts-AFP 26/06/08
March 14 urgently needs a new impetus-By Michael Young  26/06/08
Can Lebanon douse political fires?By Nicholas Blanford .Christian Science Monitor 26/06/08
Lebanon faces testing times-By Ferry Biedermann.Financial Times 26/06/08
Beware an Israeli prime minister facing unpopularity at home-The Daily Star 26/06/08

Latest News Reports From Miscellaneous Sources for June 26/08
Bread Crisis … Confrontation Between Government and Bakeries Thursday-Naharnet
Partial Agreement on Cabinet Line-Up, Controversy Revolves Around Service-Related Portfolios-Naharnet
Lebanon Unrest Spreads to Several Provinces-Naharnet
Rival Students Clash at Lebanese University-Naharnet
March 14 Accuses Hizbullah of Seeking to Annul Doha Deal
-Naharnet
Fneish Calls for Creative Solutions to Hizbullah Weapons
-Naharnet
Pakradoni Sets the Rule of Relations with President Suleiman
-Naharnet
Geagea Wants Security for the People
-Naharnet
French sources: Syria prepared to 'reconsider' its Iran ties-Ha'aretz
German mediator to secure Hezbollah, Israel signatures on prisoner ...Ha'aretz
Syria allows UN team to probe bombed site-Boston Globe
Beirut warns bakers not to make good on vow to raise prices-Daily Star
Sleiman, Siniora take fresh crack at distribution of portfolios-Daily Star 
Security tightened around courthouses after reports of foiled attack in Beirut
Factions meeting in Tripoli stress need for army to take charge-Daily Star 
Spain to buy 100 armored vehicles for peacekeepers-Daily Star 
Lebanese citizen flees Israel, returns to hometown-Daily Star 
Fneish: Hizbullah's weapons not linked to Shebaa-Daily Star 
Olmert says prisoner swap will go before Cabinet Sunday-AFP
Lebanon 'rises' in ranks of world's 'failed states-Daily Star
Europe stresses commitment to stamping out torture in Lebanon-Daily Star 
Lebanese companies debate ways to gain access to Europe's Fairtrade market-Daily Star
Two years after Israeli air strike oil is off Lebanon's beaches - technically-AFP
IAEA inspectors return from first visit to Syria-Daily Star 

Partial Agreement on Cabinet Line-Up, Controversy Revolves Around Service-Related Portfolios
Naharnet/Despite the progress made in the new cabinet line-up with respect to distributing portfolios, two service-related posts, however, continued to spark controversy. News reports said that while it was almost certain that Free Patriotic Movement leader Michel Aoun will get the deputy PM cabinet post, controversy still revolved around the service-related posts – telecommunications and public works. Prime Minister-designate Fouad Saniora has suggested that Aoun gets, in addition to the deputy PM post, the public works portfolio. Hizbullah and AMAL Movement, the pillars of the opposition, however, want the telecommunication post instead. Meanwhile, Aoun was not willing to give up a key sovereign portfolio. The daily As Safir on Thursday quoted Saniora sources as expressing optimism over the cabinet formation, saying it is likely to be announced before week's end. It also quoted President Michel Suleiman as telling visitors that in the event the new cabinet was not formed "within two or three days," he would shift to Parliament to hold it to account in order to reassess the content of the Doha agreement. Beirut, 26 Jun 08, 09:15

Lebanon Unrest Spreads to Several Provinces

Naharnet/The unrest in Lebanon following the election of President Michel Suleiman has spread to several provinces.
In the eastern town of Saadnayal, an explosion went off in an auto upholstery repair shop. No casualties were reported from the 500-gram TNT bomb.
In a separate incident, inspector Ghusoub Shouman with Lebanon's General-Security Department escaped Thursday a grenade attack and bullet shots in the Western Bekaa Valley town of al-Suwairi. Security sources said unknown assailants tossed a hand grenade followed by automatic gunfire at Shouman as he and his family battled to put out a blaze in his BMW car that had been set on fire deliberately. Meanwhile, the body of 17-year-old Haydar Awada was found near the Jaafarite Dar el-Fatwa in the southern port city of Tyre. Security sources said Awada, a resident of the densely-populated al-Masakin neighborhood in Tyre, was shot and killed by unknown assailants early Thursday. Beirut, 26 Jun 08, 23:08

Lebanon Unrest Spreads to Several Provinces
Naharnet/The unrest in Lebanon following the election of President Michel Suleiman has spread to several provinces. In the eastern town of Saadnayal, an explosion went off in an auto upholstery repair shop. No casualties were reported from the 500-gram TNT bomb. In a separate incident, inspector Ghusoub Shouman with Lebanon's General-Security Department escaped Thursday a grenade attack and bullet shots in the Western Bekaa Valley town of al-Suwairi. Security sources said unknown assailants tossed a hand grenade followed by automatic gunfire at Shouman as he and his family battled to put out a blaze in his BMW car that had been set on fire deliberately. Meanwhile, the body of 17-year-old Haydar Awada was found near the Jaafarite Dar el-Fatwa in the southern port city of Tyre. Security sources said Awada, a resident of the densely-populated al-Masakin neighborhood in Tyre, was shot and killed by unknown assailants early Thursday. Beirut, 26 Jun 08, 23:08

Bread Crisis … Confrontation Between Government and Bakeries Thursday
Naharnet/The Bakeries Association announced a hike in bread prices effective on Thursday.
It said the price of 1,250 grams of "Arabic Bread" will increase from LL 1,500 to LL 2,000, a move strongly criticized by the Economy Ministry as both "illegal" and "unjustifiable."A statement issued by the Bakeries Association said the price increase was prompted by the surging price of flour and gas-oil, which has risen from LL 25,000 per 20 liters to about LL 37,000. Economy Minister Sami Haddad urged the bakeries not to tamper with "the citizens' daily bread."
Haddad, who stressed that his ministry was doing all that it could to ease the pressure on bakeries, warned that he would stop supplying any bakery with flour if it hiked the price of the bread pack to LL 2,000. He expressed willingness to discuss "all the problems with the bakeries, but first I urge them to reconsider their decision to raise the prices of bread." However, Haddad's threat only aggravated the bakeries.
"I dare Haddad to stop supplying us with flour because the first thing we will do is close all bakeries," warned Kazem Ibrahim, the head of the Bakeries Association, adding that the government's current wheat subsidy is insufficient. Zuheir Berro, head of Consumers Lebanon, however, rejected the bakeries' justifications for raising prices, saying "the government is subsidizing the prices of wheat and flour by no less than 25 percent.""This is the best thing the state can offer under these circumstances," Berro added. Beirut, 26 Jun 08, 10:16

Rival Students Clash at Lebanese University
Naharnet/Repeated clashes between rival students at the Lebanese University have prompted political leaders' intervention in an effort to prevent recurrence of similar disputes. The pan-Arab daily Al Hayat said the clashes at the Lebanese University's Science Faculty took place between students from the Chouf Mountains, Aley, Upper Metn and Iqlim el-Kharroub from one side and others belonging to Hizbullah. It said the repeated disputes between the rival students pressed a delegation representing "mountain" students to visit Druze leader Walid Jumblat at his palace in the Chouf town of Moukhtara. The delegation expressed regret for what is happening and warned that students would drop out of college if pressure is not eased, Al Hayat said.It said Jumblat stressed the importance of staying in college "at any cost and despite the pressure." Jumblat was reportedly against any sectarian classification at the "national university which is the best place for youth coexistence."Al Hayat said a meeting that took place on Wednesday between Jumblat's Progressive Socialist Party (PSP) and AMAL movement against the backdrop of growing concern over the frequent student disputes. In a joint statement, the two factions called for normal relations between students at the various universities.The two sides also agreed on backing efforts by the Lebanese army and security forces to safeguard stability and protect the people. The statement issued after a meeting by their representatives at parliament, also urged the army and security forces to deal strictly with any attempt by any side to break the law. The statement also backed reconciliation efforts and said political differences should be tackled only through constitutional institutions. Beirut, 26 Jun 08, 12:07

March 14 Accuses Hizbullah of Seeking to Annul Doha Deal

The ruling March 14 coalition has accused Hizbullah of carrying out a plan aimed at annulling the Doha agreement.
"Hizbullah's plan includes abolishing the security clause of the Doha agreement with respect to prohibiting the use of weapons to achieve political goals," said a statement issued by March 14. "The plan also includes attaching the formation of the new cabinet to a number of conditions, which if accepted by the parliamentary majority, will lead to Hizbullah's control over key security posts," the statement added. March 14 reiterated its commitment to the Doha accord and urged all Arab states which brokered the deal "to step in to save it from collapsing." Beirut, 25 Jun 08, 20:09

Israeli Government to Vote on Prisoner Swap with Hizbullah
The Israeli government will vote on Sunday on a possible prisoner exchange with Hizbullah, Prime Minister Ehud Olmert said.
"I decided to bring the issue for the government's approval when it meets on Sunday," Olmert said in parliament on Wednesday.
Last week, Lebanese and Israeli officials hinted at an upcoming release of Eldad Regev and Ehud Goldwasser -- two soldiers captured in a Hizbullah cross-border raid in July 2006 that sparked a 34-day war in Lebanon. The proposed prisoner swap has raised controversy in Israel amid concern the two Israelis may be dead.
Regev and Goldwasser are believed to have been wounded during their capture and Hizbullah has provided no proof that they are still alive.
The deal also drew criticism because it is believed to include the release of Lebanese prisoner Samir Qantar who is currently serving a life sentence for killing two men and a four-year-old girl in a 1979 attack in northern Israel. Despite reports of progress, Olmert has in recent days appeared hesitant over the prisoner swap. He said on Tuesday that the negotiations with the Shiite group needed more time and had not been concluded.(AFP) Beirut, 25 Jun 08, 17:59

March 14 urgently needs a new impetus
By Michael Young -Daily Star

Thursday, June 26, 2008
No one likes to take a prediction back, but last week I wrote that Michel Aoun would be unable to win as large a parliamentary bloc in next year's elections as he controls today. Three developments in the past week indicate why this reading may have been over-optimistic; and why those of us who focus on Aoun's undoubted loss of power in the past three years might also be guilty of overstating his failings to our own peril.
The first development is the precariously insular mood of the Christian community, which the beatification of Yaaqoub Haddad last Sunday illustrated well. Christians assembled massively for the event, which was understandable, but by way of contrast (since nothing political could have similarly galvanized them) this affirmed how detached the community is toward the larger issues afflicting Lebanon - Syria's persistent efforts to reimpose its writ and Hizbullah's challenges to the sovereignty of the state.
Many things explain this Christian lassitude. Like most Lebanese, Christians have had enough of the political deadlock. Where Haddad's story was inspirational, Lebanon's today is anything but. More disturbingly, the community feels itself in permanent decline, therefore politically irrelevant. All this favors Aoun, who feeds off Christian frustration. While the general has lost ground, while many Christians now look at him with as much cynicism as they do other politicians, he still has a loyal core of followers who will mobilize amid the ambient indifference, even as his Christian adversaries gain little from his setbacks.
A second reason is that Michel Murr, the powerbroker in the Metn, may be more vulnerable than we thought - which means that Aoun will be less vulnerable in the Metn next year. In past elections, Murr's strength has come from two phenomena: his alliance with the Armenians and his ability to act as a bridge between the disparate Metn constituencies - his own voters, Amin Gemayel's electorate, the Armenians, the Aounists in 2005, and other smaller groups, such as the Syrian Social Nationalist Party's sympathizers. The situation appears to be changing today.
Murr's priority appears to be to ensure that his son, Elias, will be appointed defense minister. Because the portfolio is important to determine who will be named to top military posts, including that of commander of the army and head of military intelligence, the Murrs are under pressure from the opposition to offer guarantees on these appointments before a government can be formed. It also appears that the Tashnak Party's alliance with Aoun is stronger than many suspected and does not necessarily pass through Michel Murr. If so, this may compel the Murrs to recalculate in 2009. Reports in recent days, for example, have suggested that Michel Murr may be trying to reopen a channel to Aoun. He needs Armenian votes to win in the district; the Armenians are not about to abandon Aoun, but are hostile to Amin Gemayel after the way he condemned the community after his loss in the 2007 by-election; and the Murrs are not in the best of postures because of their Cabinet demands. What you may have in the making is a winning Aoun campaign, which Aoun's substantial funds from various patrons will help lubricate.
A third reason why writing Aoun off could be premature is that the March 14 coalition, particularly in the past week, has only confirmed how devoid it is of stirring ideas. If many Christians are far less enthusiastic than they were about Aoun, they have not transferred their enthusiasm to the majority. And yet there are things the March 14 leadership can and must do to behave like a majority and regain the initiative nationally.
For starters, the government and March 14 need to show more imagination when dealing with the social and economic crisis - the main concern today of all Lebanese. What has the government done to make this a priority? What has the majority done? There is no lack of money among states supporting March 14, no lack of interest from the Lebanese diaspora, to fund projects that might increase employment and reinforce the impression that the parliamentary majority, like Rafik Hariri once, stands for economic prosperity. The government may have limited constitutional powers today, but nothing prevents it from proposing practical measures alleviating the socioeconomic burden on the Lebanese that a new government could take up. In its rhetoric, March 14 almost never constructively tackles the population's declining purchasing power.
Much more also needs to be done by the majority to outline a vision of a Lebanese state that can eventually overcome Hizbullah's vision of a non-state. Christians won't embrace that vision if they believe the majority is no better than Hizbullah. But the reality is that Saad Hariri cannot define such a vision when he appears to be losing control over his justifiably angry Sunni community - in Saadnayel, Taalbaya, and Tripoli. Nominally, most Sunnis are staunchly behind the Future Movement, but on the ground the dynamics say the Hariri camp is being overtaken by events.
It is troubling, for example, that Hariri has not traveled once to Tripoli and the Akkar since the fighting last May. Yet it is essential for him to place his stamp on developments in that area, show his face with a Sunni base that has become, for better or worse, his street muscle, and most importantly prevent the Sunnis of the North from taking their resentment of Hizbullah too far, because the result will be open war. Hariri has no choice. A moderate, he will nonetheless be blamed for any upsurge in Sunni extremism. There are reports he is reorganizing the Future Movement. That's long overdue, but his priority must be to see to it that Tripoli and the Sunni areas around it, like the Sunni areas in the Bekaa Valley, are not lost to the state as are the areas under Hizbullah control.
March 14 still has a great deal in its favor, but it needs to develop a strategy that draws maximal benefit from these advantages. It needs, first of all, to talk to the Christians on their own terms. Muslim leaders in March 14 rarely ever address the concerns of Christians, never even make an appearance in their districts, abandoning too many of them to Michel Aoun. A single visit by Saad Hariri to St. Joseph University to exchange ideas with students, to lay out his plan for a future Lebanon, to discuss the anxieties of the young, perhaps also to defend, or conversely apologize for, the quadripartite electoral agreement of 2005, would have a tremendous impact. If March 14 represents a majority, then it should show it.
March 14 also needs to develop a coordinated election strategy to make certain that Christian rivalries inside March 14 won't facilitate a new Aoun victory in Mount Lebanon next year. This means forming consensual candidate lists as soon as is feasible, preferably in coordination with Michel Sleiman, who enjoys Christian support. It also means initiating required reconciliations where possible. Amin Gemayel, for example, needs to quickly resolve his differences with the Armenians in Metn, while Saad Hariri should explore a new relationship with Tashnak in Beirut, even if he loses a parliamentary seat in the process. The long-term gains from that could well counterbalance the disadvantages.
And most importantly, in defending a state project March 14, particularly the Future Movement, needs to show that it has a tight rein on what is today a humiliated and confused Sunni community. Hariri cannot defend the project of a stronger state while allowing the Sunnis outside Beirut to slip further into a war mentality. That Hizbullah's recklessness is to blame for this goes without saying. But national suicide, to borrow from Michel Sleiman, will spare no one. And if Lebanon goes down that path, Syria will very likely again be tasked with imposing order on the country, ending the fragile freedom we won three short years ago.
**Michael Young is opinion editor of THE DAILY STAR.

Fneish: Hizbullah's weapons not linked to Shebaa
Daily Star/Thursday, June 26, 2008
BEIRUT: Resigned Minister Mohammad Fneish said Wednesday the issue of Hizbullah's arms is not related to talks about Israel withdrawing from the occupied Shebaa Farms. "In spite of our welcoming of any form of liberation of the Shebaa Farms, we cling to our defense strategy, which has been in place for a long time, even before the matter of the Farms was raised," he said after meeting with Norwegian Ambassador Aud Lise Norheim. "The defense strategy can be worked out through internal dialogue and ending foreign interference. At the same time, the solution to the problem of the [weapons of the] resistance should be revisited, while taking into consideration the suffering of the Southerners," he added. Fneish said the incidents in Beirut in May have been exaggerated. "Resistance supporters were defending themselves, and the resistance was defending itself against the decisions of the government," he added.

Sleiman, Siniora take fresh crack at distribution of portfolios
Geagea insists premier represents Lebanon's Christians
By Hussein Abdallah and Nafez Qawas
Daily Star staff
Thursday, June 26, 2008
BEIRUT: President Michel Sleiman and Prime Minister Fouad Siniora have reportedly initiated "new moves" with respect to distributing portfolios in the new government in an attempt to put and end to the ongoing crisis. The fresh efforts also coincided with a telephone conversation on Wednesday between Siniora's adviser Mohammad Shattah, and Free Patriotic Movement official Gibran Bassil. The meeting between Shattah and Bassil was reportedly aimed at discussing solutions to ending the deadlock. Meanwhile, Lebanese Forces (LF) leader Samir Geagea said on Wednesday that Free Patriotic Movement leader MP Michel Aoun was the main obstacle to forming the new cabinet. "Aoun considers himself to be the only representative of Christians and therefore thinks he has the right to control the Christian quota in the next cabinet," Geagea said. "Aoun's judgment is invalid because it is based on the results of the 2005 parliamentary elections ... I believe that it is Siniora who represents the Christians," he added.
"Aoun refers to the 2005 elections to say he represents the majority of Christians, but at the same time he does not accept the results of the elections by not recognizing the parliamentary majority." Geagea said he was in favor of giving the security-related interior and defense portfolios to the president.
He urged Siniora and Sleiman to make up their minds as soon as possible and come up with a formula for cabinet. "We cannot leave the country without a government for the simple reason that were are unable to give Aoun a portfolio that satisfies him."
As for the issue of the new electoral law, Geagea criticized Aoun for "using" this issue to claim "false victories.""A number of lawmakers from Aoun's bloc rushed to Parliament recently and presented a draft proposal on adopting the amended version of the 1960 electoral law for next year's parliamentary polls ... they were simply presenting a draft proposal on something that all parties have already agreed to ... what kind of achievement is that?" Geagea asked.
The LF chief also urged Sleiman to call for a national dialogue to address the security situation in the country. Geagea said such a dialogue was necessary even in the absence of a new cabinet. Meanwhile, Marada Movement leader Suleiman Franjieh, who paid a visit to the president on Wednesday, criticized Geagea for saying Siniora represented the Christians. "Geagea believes Siniora represents the Christians more than Aoun does ... he probably believes that Shaker al-Abssi [the leader of the extremist Fatah al-Islam group] also represents the Christians," he said. Asked if he was engaged in any effort to improve ties between Lebanon and Syria, Franjieh said Assad and Sleiman had close relations, adding that he was ready to mediate between Assad and parliamentary majority leader MP Saad Hariri.
Meanwhile, Hizbullah number two Sheikh Naim Qassem said Wednesday that Siniora had rejected five proposals by the opposition to end the deadlock over the formation of the new government. "Siniora made specific suggestions and kept holding to them, whereas the opposition came out with five alternate proposals, all of which were rejected," Qassem said.
"Siniora is to be blamed for the delay in forming the new cabinet because part of his job as prime minister is to try to find solutions," he added.
Qassem urged Siniora to explain to the public the reasons delaying the formation of the new cabinet. Hizbullah's second in command said that the Doha deal, which ended an 18-month political crisis in the country, has paved the way for a "period of consensus that should be capitalized upon." Also on Wednesday, Hizbullah's Loyalty to the Resistance parliamentary bloc said that forming the national-unity government was the first step toward "the return to normal political life in the country."A statement released after the bloc's weekly meeting said it was Siniora's duty to hasten the formation of the new cabinet.
"The opposition has put forward a number of proposals that are awaiting positive responses from the parliamentary majority," it added. The statement also called for the adoption of the new electoral law agreed upon in Doha as soon as possible. The bloc also warned against all forms of sectarian incitement and welcomed the efforts being made by the country's spiritual leaders to prevent internal strife.
Leaders of Lebanon's different religious groups met at the Presidential Palace on Tuesday in an effort to bring about peace between the country's different communities after rounds or raging violence. Also on Wednesday, the March 14 camp accused Hizbullah of executing a plan aimed at nullifying the Doha deal.
A March 14 statement said Hizbullah's plan includes eliminating the security item of the Doha agreement with respect to prohibiting the use of arms to achieve political goals. "The plan also includes attaching the formation of the new government to a number of conditions, which if accepted by the parliamentary majority, will lead to Hizbullah's control over key security posts," it added. The March 14 Forces reiterated their commitment to the Doha agreement and called on all Arab states which brokered the agreement "to intervene to save it from collapsing."

Algerian court to decide fate of Christian converts
By Agence France Presse (AFP)
Thursday, June 26, 2008
ALGIERS: An Algerian court is to hand down its verdict on July 2 following the trial of two Christian converts accused of proselytizing, the head of the country's Protestant Church said Wednesday. Mustapha Krim said the two had been tried for allegedly distributing literature prejudicial to the Muslim faith. A local journalist reported that the trial at Tissemsilt, 350 kilometers southwest of Algiers, had gone off smoothly. The prosecution was the third to be brought against Christian converts in Algeria since a controversial law was passed in February 2006 demanding non-Muslim congregations seek permits from regional authorities. The two converts were each sentenced in absentia in November to two years in jail and a $7,700 fine for illegally practicing a non-Muslim religion. - AFP

Beirut warns bakers not to make good on vow to raise prices
By Osama Habib -Daily Star staff
Thursday, June 26, 2008
BEIRUT: Lebanon's bakeries announced on Wednesday that they would hike the price of Arabic bread from LL1,5000 to LL2,000 on Thursday, in a move strongly criticized by the Economy Ministry as both illegal and "unjustifiable."After a meeting on Wednesday, the general assembly of the Union of Bakeries said that surges in flour and gas-oil prices had forced them to raise the prices of bread. Kazem Ibrahim, the head of the Union of Bakeries, told The Daily Star that the cost of bread is becoming so high that "many bakeries are recording losses these days." He added that gas-oil prices have risen from LL25,000 per 20 liters to nearly LL37,000. "People assume that bakeries are loaded with money but the fact is we are suffering just like any other Lebanese," Ibrahim said.
But Economy Minister Sami Haddad urged the bakeries not to tamper with "the daily bread of the citizen." Speaking at a press conference at the Grand Serail, Haddad said his ministry was doing all that it could do to ease the pressure on bakeries. He warned that he would stop supplying any bakery with flour if it raised the prices to LL2,000 per 1,250 grams of Arabic bread. "I will apply the law against any bakery which raises the prices of bread tomorrow," Haddad said.
Sources said the ministry would also apply penalties on all bakeries that raise prices. "I am more than willing to discuss all the problems with the bakeries, but first I urge them to reconsider their decision to raise the prices of bread," Haddad said.
But the minister's threat only aggravated the bakeries. "I dare Haddad to stop supplying us with flour because the first thing we will do is close all bakeries," Ibrahim warned. He added that the government's current wheat subsidy is insufficient. The price of a ton of wheat is $460 in the international market but the Economy Ministry agreed on Tuesday to increase the subsidy to bring the price of a ton of wheat in the local market down to $250. All the bakeries which attended Wednesday's general assembly agreed to stick to the union's decision. "I can honestly say that 90 percent of the bakeries will change the prices of bread," Ibrahim said. Anis Bechara, another bakery owner, assured that the move was not aimed at the citizens. "We prefer that the state supports the bakeries instead of raising the prices. But since the government is not keen on helping us then we are obliged to review the prices," Bechara said. But the head of Consumers Lebanon, Zhuair Berro, rejected the bakeries' justifications for raising prices. "The government is subsidizing the prices of wheat and flour by 25 percent at least. This is the best thing the state can offer under these circumstances," Berro said.

Europe stresses commitment to stamping out torture in Lebanon
Delegation notes $1.5 million donation
By Alexander Besant -Special to The Daily Star
Thursday, June 26, 2008
BEIRUT: The European Commission (EC) reiterated its commitment to the prevention of torture in Lebanon at a news conference Wednesday. "We regret that there are still reports of torture taking place in Lebanon even though Lebanon is a signatory of the UN Convention Against Torture," Kruijs Voorberge, head of the Dutch delegation, said. "Lebanon should respect its obligations under the convention." The news conference was set to coincide with Thursday's International Day in Support of Victims of Torture, an annual event created by the UN in 1997 to reemphasize the illegality of torture.
The EC reaffirmed its efforts in aiding local non-governmental organizations (NGO) and pressuring the Lebanese government to establish measures to combat the use of torture. All parties attending the conference agreed that "Lebanon lacks the judicial tools in which to adequately prevent the use of torture."
According to officials, the EC has already spent 1 million euros ($1.55 million) on three projects with local NGOs to combat torture and to rehabilitate victims in Lebanon. Furthermore, under the European Neighborhood Policy, Lebanon is required to ratify the Optional Protocol of the Convention Against Torture, to ameliorate the conditions of its detention centers and to fulfill its international obligations regarding torture, they added.
The three local NGOs financed by the EC thanked the body for its support and further emphasized the need to strengthen Lebanon's prohibition of torture and support its victims. Mohammad Safa, a representative for the Khiam Rehabilitation Center for Victims of Torture, a Lebanese NGO, said of the first year of a European-funded project: "1,122 victims of torture and their families benefited from the project. This project was a primary compensation for the years of negligence [victims and their families] have faced."
The Restart Center for the Rehabilitation of Victims of Violence and Torture undertook a similar mission in its first year of the project, providing free rehabilitation services to victims, aiding in social reintegration, capacity building of other rehabilitation providers and creating a database for incidents of torture in Lebanon.
Local NGO ALEF, also a part of the EC's strategy to combat torture, has dedicated itself to building awareness and to lobbying the government to uphold its international obligations under the UN convention. In a separate press conference to be held Thursday, ALEF will present a report on the use of torture in Lebanon which suggests that torture still remains widespread in the country. Both the NGOs and the EC also made clear during the conference that the use of torture could not be reduced to a cultural particularity but was rather a scourge on all human societies.
"How many times have we heard that certain forms of oppression are integral to a society?" asked Patrick Laurent, the EC ambassador to Lebanon. "Allow me to restate that there is no inherent tradition in any society which can justify terror, torture, or the harsh treatment of a person."

Beware an Israeli prime minister facing unpopularity at home
By The Daily Star
Thursday, June 26, 2008
No country should allow the internal politics of another to determine its course of action, but no decision-maker in the Middle East can afford to ignore recent developments in Israel. The prime minister, Ehud Olmert, is in deep trouble over a corruption scandal, and the Jewish state has a long history of making war on its neighbors in order to deal with domestic divisions. It generally prefers to do so in the summer, too, when clear weather sharpens the advantages conferred by its technologically advanced air force - and when the end of the academic year in Israel and several Western countries frees up much of its reserve officers and enlisted personnel for combat duty. In today's circumstances, the risk of war is even more acute because this is the last summer when US President George W. Bush, easily the most pro-Zionist president in history, will be available to provide presumably unconditional support for whatever depredation(s) the Israelis choose to carry out.
Three likely targets of Israeli aggression have to be considered: Iran, which the Jewish state suspects of seeking to end its regional monopoly on nuclear weapons; the Gaza Strip, where the Israelis recently agreed to a cease-fire with Hamas but waited less than a week before trying to sabotage it by assassinating an Islamic Jihad commander in the Occupied West Bank; and Lebanon, where the Israeli military is still smarting from the humiliating loss of face it suffered during the 2006 war - and where Washington (and some other capitals) might think it advisable to pre-empt the 2009 elections by trying to eliminate Hizbullah. In turn, each of these potential fronts has the capacity to spark fighting on the others - and possibly to draw America into the ensuing melee.
There are several signs, both internal and external, that Israel is girding for a fight. Olmert has secured an agreement under which his main coalition partner, Defense Minister Ehud Barak of the Labor Party, will not quit the government before September, when the premier has agreed to clear up his own political status by holding a primary within his own Kadima grouping. That secures Olmert's current position in the near term, but it does nothing to improve his chances of fighting off a challenge from Foreign Minister Tzipi Livni for the Kadima leadership - or of besting Barak and the Likud Party's dangerous entrant, former Prime Minister Benjamin Netanyahu, in a general election.
Olmert is not quite so unpopular as he was during the immediate aftermath of the war with Lebanon, but his poll ratings remain dismal. It is easy to see, therefore, how he might view a foreign military adventure as a way of rallying voters around the flag, which always tends to help an incumbent. Best of all, from his perspective, he would even be spared much of the partisan scorn that would otherwise be attracted by such a nakedly cynical ploy: Neither Netanyahu, who rarely opposes the profligate use of Israel's military might, nor Barak, who will have to play a key role in directing any offensive this summer, would be well-placed to use this angle of electoral attack.
It may well be, therefore, that Olmert has decided already that this summer he will go to war again, and that the only thing left to be determined is where the hammer(s) will fall. The fact that indirect talks with Hizbullah over a prisoner swap are still ongoing might lessen the likelihood that the attack will take place here, but if the negotiations reach an impasse, all bets are off. The provocation in the West Bank means that Gaza is very much under consideration, if only as something to be "mopped up" while international attention is diverted by a higher-profile onslaught elsewhere. It is by hitting Iran, specifically its nuclear facilities, that Olmert might think he has the most to gain.
All of these potential targets should take great care to avoid providing Olmert with a pretext that would both make an attack inevitable and dilute whatever condemnation might come from more responsible members of the international community. Olmert knows this, which is why he tried (successfully) to get Islamic Jihad to break the Gaza cease-fire. It is also why, at a moment when the Iranians are contemplating a compromise with major powers over uranium enrichment but clearly indicating their aversion to anything that looks like backing down, the Israelis let it be known that they recently undertook aerial maneuvers to prepare for an assault on the Islamic Republic. If that bit of bullying elicits an Iranian rejection of the proposal recently delivered by EU foreign policy chief Javier Solana, Israel's "cover" for an attack will be that much stronger.
Rarely have so many factors converged so perfectly to increase the likelihood of Israeli aggression. Rarely has it been more important, therefore, for the region's indigenous forces - especially Hamas, Hizbullah and the Iranian government - to think long and hard about anything that might give the Jewish state an excuse to lach out. Indeed, even if an onslaught is launched without a pretext, all of these actors should consider turning the other cheek in hopes of preventing escalation and, thereby, of preserving the viability of the diplomatic solutions that such an attack would be designed to doom.

Lebanon faces testing times
By Ferry Biedermann
Financial Times
Published: June 25 2008
When the fighting is over, the Lebanese like to let the good times roll. Following last month’s street battles, downtown Beirut has reopened after 18 months of confrontation, seeing celebrations which resembled a street carnival. And 10 days ago, the Buddha Bar night club in the city centre, a symbol of Lebanese excess that had closed during the protests, was relaunched, signalling that Beirut is once again open for business.
Many in Lebanon like to boast that the country always comes roaring back from its periods of instability. And indeed, the crucial tourism and real estate sectors are expecting a post-conflict boom, if all goes well and money and visitors pour into the country over the summer months.
EDITOR’S CHOICE
Rice backs new president on Beirut visit - Jun-16Skirmishes put Lebanon peace deal in doubt - Jun-11Lebanon gets president after six-month wait - May-25Lebanese president has gulf to bridge - May-25Lebanon’s Christians boosted by Doha deal - May-23Lebanese leaders strike power sharing deal - May-21But some warn that Lebanon is now headed even more rapidly for a price crunch as inflation mounts and outside money flows in.
Real estate prices in Beirut jumped between 15 and 20 per cent in the weeks immediately following the Doha agreement in May, according to Raja Makarem, a real estate consultant. The accord ended more than a week of fighting between supporters of the western-backed government and the Hizbollah movement and its allies, and pointed a way out of 18 months of political deadlock.
Prices have reached some $3,000 per square metre in Beirut and some agents are asking as much as $4,000, even outside the much more expensive downtown area.
And tourism, which can contribute between 9 and 12 per cent to gross domestic product, is expected to prosper this year. The country may receive more than 1.3m visitors, up from just more than 1m last year, says Joseph Sarkis, the tourism minister. Airlines are reporting a run on tickets and hotels say reservations are piling up for the summer months.
Much depends now on a stabilisation of the still-precarious security situation and the formation of a government of national unity, which has been entrusted to Fouad Siniora, the previous prime minister.
After the initial euphoria of the deal in Doha, both the security and the political situations have deteriorated once more. Mr Siniora is encountering serious obstacles in the formation of a new government, centring mostly on the division of cabinet portfolios. Analysts and politicians now fear that the formation of the cabinet could become a tense, drawn-out affair.
More worryingly, low-level violence has continued uninterruptedly since the Doha accords, escalating occasionally into serious combat. Last weekend at least nine people were killed in clashes between different factions in the northern port city of Tripoli. And in the eastern Bekaa valley, at least four people have died in intermittent outbreaks of fighting.
But even if all goes well, the optimistic trends in both real estate and tourism mask a more complex truth. Large-scale investors, who virtually stopped launching new projects in the country after the war with Israel in 2006, have so far not returned.
Mr Makarem, a real estate consultant in Beirut, notes that money from the Gulf and other Arab countries is coming in the form of small-scale private purchases, not large developments. “It will take time before Lebanon can attract big Arab investors again.”
The only exception is the country’s small stock market, dominated by the real estate and banking sectors. Foreign investors seem to be confident that the market offers good value.
Mr Sarkis acknowledges that it will take years of calm and stability for the tourism sector to take full advantage of the opportunities that the country has to offer.
“We don’t have industry that can compete and we don’t have agriculture. We have services,” he says.
Much of the activity in tourism and real estate is the result of one of the less favourable developments in recent years: a massive outflow of human capital from the country. Many Lebanese head for jobs abroad, especially in the Gulf countries.
In crisis years, such as 2006 and 2007, expatriates have returned on family visits and have even continued to buy real estate. But much more important for the national economy is the money they send back in remittances, now estimated at $7bn annually.
While this allows some families to survive, those who do not have relatives abroad or who are not directly employed in the real estate or tourism sectors may experience worsening economic conditions. Concerns about rising prices, food, fuel and, in the real estate sector, making rents and housing unaffordable, are almost unanimous.
“We are facing a price explosion,” says Charberl Nahas, an economist. For most wage-earners, this will not be offset by the two-thirds increase in the minimum salary voted through by the outgoing government last month, he says.
To help revive the economy, the government must act on a series of reforms that have not been implemented during the political impasse. The energy sector needs to be restructured and the telecommunications sector privatised, say economists. But the prospects of that happening ahead of general elections in May or June next year appear mixed at best. Copyright The Financial Times Limited 2008

Can Lebanon douse political fires?.
By Nicholas Blanford
The Christian Science Monitor
from the June 26, 2008 edition
An Agence France-Presse report on heightened tensions between Shiites and Sunnis in Lebanon.Tripoli, Lebanon - Thick black smoke billows out of the shattered windows of a small house on the edge of the Jabal Mohsen district in this city as a fireman directs water into the burning building.
Several other houses nearby also smolder from a spate of arson attacks that are keeping tensions high between the mainly Alawite (an offshoot of Shiite Islam) residents and their traditional rivals in the Sunni quarter of Tebbaneh.
The smoldering fires are an apt metaphor for tensions now threatening a rare breakthrough in this country's governance.
Five weeks ago, Lebanon's feuding political bosses reached an agreement that ended some of the worst internal violence in nearly two decades. Qatar brokered a deal that allowed for the election of a new president and was meant to end 19 months of political deadlock.
But the formation of a new national unity government has hit an impasse. Rival politicians are squabbling over the distribution of cabinet portfolios, and tensions are building once more in flash points around the country.
Some observers also worry that Lebanon, like Iraq, could become a new battleground between Sunni and Shiite extremists. The week-long street battles in Beirut in May – between the militant Shiite Hezbollah and Sunni supporters of the Future Movement – have aggravated simmering tensions between Sunnis and Shiites. But others suggest that these are largely local disputes.
"Differences among the Lebanese have reached the edge of suicide," warned Michel Suleiman, the new president, at a meeting Wednesday of Lebanese spiritual leaders who convened at the presidential palace to discuss how to address the friction.
In a statement after the meeting, Christian and Muslim leaders stressed the need for national unity, denounced extremism, and called on rival factions to refrain from using violence to achieve political gains.
While national political leaders blame their opponents for starting the clashes, most of the recent sporadic outbreaks of fighting in north Lebanon and the Bekaa Valley in the east appear to have been symptoms of old rivalries and localized disputes spinning out of control rather than deliberately orchestrated military campaigns. Take Jabal Mohsen and Tebbaneh – two quarters living cheek by jowl in the center of Tripoli, Lebanon's second-largest city. The residents of both districts have been feuding since the 1975-90 civil war when they fought on opposite sides. Today, the residents of Jabal Mohsen, who are mainly Alawites, an offshoot of Shiite Islam, are supporters of the opposition led by the militant Shiite Hezbollah.
The most popular political party in the Tebbaneh district is the Sunni Future Movement, the largest component of the March 14 parliamentary coalition. But many residents here adhere to the Salafi school of Islam, some of whom believe an ideology that brands Shiites – including Alawites – as apostates.
Continuing political tensions in Lebanon have fanned the glowing embers of rivalry and resentment between Jabal Mohsen and Tebbaneh, triggering two days of vicious fighting earlier this week that left at least nine people dead and over 50 wounded.
The evidence of the fierce fighting lies in the hundreds of empty brass rifle rounds lying on the main road separating the two quarters. Dozens of shabby houses, many of them still carrying the scars of the civil war, are newly blackened by fire and peppered with fresh bullet holes.
"They were very fierce battles. I have never seen anything like it. These people don't care about civilians and children; they shot at anything," says Abdel-Karim Mahfouz, a construction worker in Jabal Mohsen. Army troops fanned out in the two districts Monday night to separate the feuding factions. Armored personnel carriers with soldiers sitting on top clattered through the streets Wednesday.
Dozens of young men, some clutching walkie-talkies, huddled in groups along the main road through Jabal Mohsen, sipping tiny plastic cups of coffee and talking quietly. They blame the outbreak of fighting on the residents of Tebbaneh, saying that militant Salafi clerics had been stirring up Sunni extremists with fiery anti-Shiite sermons. Foreign jihadi militants have infiltrated Tebbaneh and are being armed and paid by Saudi officials and leaders of the Future Movement, they claim, echoing a prevalent rumor in Lebanon. "We are besieged today. If we leave Jabal Mohsen, the Sunnis beat us and steal our cars," says a man who would only identify himself as "Ali from the Jabal." "The Future Movement ...burned 15 of our houses last night. They don't want peace."
Rifaat Eid, the head of the opposition-allied Democratic Labor Party and a prominent Alawite, says that the community is placing its faith in the Army to impose order. "If the Lebanese Army hits back at troublemakers then we will have calm," he says from his office in Jabal Mohsen. On his desk lies a pile of posters with the portraits and names of four members of Mr. Eid's party who died in the clashes this week. On a wall behind him is a picture of Hafez al-Assad, the former president of Syria and the father of Bashar al-Assad, the current head of state. The Assad family belongs to the Alawite sect that also dominates the Syrian regime. Their coreligionists in Lebanon have long maintained close political ties to Syria.
"We [Alawites] are a minority and no minority wants to make problems with the majority [Sunnis]," he says. "But we have to defend our families, wives, children. Anyone coming to kill me, I will drink his blood."
Down the hill in Tebbaneh, the rubbish-strewn streets are almost deserted except for a few young men carrying walkie-talkies. Lebanese soldiers order several youths to dismantle a barricade of oil drums and sandbags. Above it flies a black flag bearing a quote from the Koran.
Here, the accusations and strident claims of residents are an echo of those heard in Jabal Mohsen: Iranians are fighting alongside the Alawites, Hezbollah is arming them, residents of Tebbaneh are beaten and robbed if they leave their neighborhood, Jabal Mohsen started the fighting and will not stop.
"The first one we killed in the fighting was a Shiite Iranian," says Mustafa Abbas, a fruit and vegetable salesman. "They only fought hard because the Iranians were with them."
Few here on either side believe that the fighting is over. "We are poor people here in Tebbaneh, but we work and buy weapons, work and buy weapons. We have to defend ourselves," says Mohammed Mahmoud, a resident. "But in the end, it will be we poor people who suffer most of all."

Barbara Walters Summoned to Syria
Wednesday, June 25, 2008
By Roger Friedman-Fox news
http://www.foxnews.com/story/0,2933,371642,00.html
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Barbara Walters Summoned to Syria
Barbara Walters is going to Syria on a diplomatic mission — unofficially, of course.
Walters, in a transcript from her most recent Sirius radio show, says she’s been summoned to the Middle Eastern hot spot by President Bashar al-Assad of Syria. She acknowledged that it’s a "terrorist country."
This little bit of information came right before she interviewed comedian and filmmaker Mel Brooks.
"The president does not want to do an interview, he would just like to have a private meeting. I’m not sure I know why," Walters tells her producer, Bill Geddie.
Al-Assad was named No. 10 on the "World’s Worst Dictator" list by Parade magazine in 2007, up from No. 16 the year before.
Its description: "Bashar al-Assad gradually has assumed greater control of the military and intelligence services. Recently, his administration was implicated in assassinations in Lebanon. A U.N. report, due in June, will detail Syria’s role. Assad is perhaps the unlikeliest of dictators: He was doing postgraduate work in ophthalmology in London when his late father, Syrian dictator Hafiz al-Assad, summoned him home in 1994 and began training him to run the country."
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Billy Preston Tribute The Walters radio show transcript was provided by Sirius. And, no, it’s not common for members of the press to have private meetings with the presidents of other countries, especially those countries thought to house terrorists.
But Walters, who works for the entertainment division of ABC, often has idealized herself as a member of the State Department and the Fourth Estate. For example, in 1987 Walters passed papers from an Iranian arms dealer to President Ronald Reagan concerning Lt. Col. Oliver North’s participation in the Iran-Contra affair.
Walters on her invitation to visit Syria:
BILL GEDDIE: You're going to Syria.
BARBARA WALTERS: Yes.
GEDDIE: Why are you going to Syria? I mean ... I hear ... Turks and Caicos is nice this time of year. Why Syria?
WALTERS: I grant you, it's a rather odd place to be going ... and especially because it is considered by the United States to be a terrorist country. I've been there before. I was invited several years ago by the wife of the president of Syria, President Assad. His wife, by the way, was raised in England and speaks better English than I do.
The president of Syria invited me. I know the Syrian ambassador to the United Nations. The president does not want to do an interview, but he would like a private meeting. I'm not sure I know why...
GEDDIE: It's like you're going there ... you don't know what he wants to talk to you about?
WALTERS: Well, I will find out. I went to meet his wife. I didn't know what she wanted to talk about. I will pay my respects. I'm going with a friend and I want to see some of the wonderful Roman ruins because Syria has some of the great ruins in the world.

When a nation loses its wisdom
By Israel Harel
Haaretz
02:06 26/06/2008
This week the three kidnapped soldiers - rather than the political crisis that stems from the ethical crisis and that is about to shake up the entire structure of Israel's government - were at the center of public discussion, and therefore of public interest.
The words of Moshe Ya'alon, to the effect that we should not pay an exaggerated price for captives even if there is fear for their lives, aroused some positive though mostly negative reactions. But they were far stronger than the reaction to the Labor Party's decision - which is of utmost political importance - to vote in favor of disbanding the Knesset.
One of the main reasons why Ehud Olmert embarked on the Second Lebanon War was to prove to Hezbollah and the other terror organizations that the era of Israel's acceptance of the kidnapping of soldiers and civilians, and payment of an unacceptable price for their return, was over. He also wanted to restore Israel's power of deterrence, and to prove that there is no truth to the famous statement by Hassan Nasrallah to the effect that Israel's tolerance for suffering is like a spiderweb, or that its end, according to the prophecy of Palestinian intellectuals, will be like that of the Crusaders, due to imminent polarization and demonstrations of weakness.
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The IDF and civil society did not pass the test of determination and did not give the political echelon - first in Lebanon and later vis-a-vis Hamas - the achievement that would have made it possible to prove to the enemy that Israeli society is in fact strong in body and soul, and that their attacks are no more than insect bites that the Israelis will easily withstand.
Even worse: The outcome of the war, both on the battlefield and on the home front, only strengthened the enemy's basic assumptions. The behavior of the home front in many places - Safed being the prominent example - testified to an almost total absence of will to confront a crisis situation that caused minuscule damage in terms of lives and property, when compared with the suffering of other nations during wars.
In the war of the Qassams, for example, a negligible number of losses has led to a significant movement of abandonment, including in kibbutzim that in the past set an example when it came to the fortitude of their residents. Things have come so far that even the IDF is evacuating a major training base out of the range of the rockets; it is joining this pattern of behavior - which will boost the enemy's morale and propaganda machine.
This behavior of the army and civilians - in other words, the nation - apparently explains why the government agreed to the absurd cease-fire with Hamas, and without Gilad Shalit. And those who are trying to destroy us can once again say to themselves: All our basic assumptions regarding Israel's fragility, in spite of their attempt to prove otherwise, are true and proven.
The Israeli home front cannot withstand a prolonged war effort; even when withstanding it does not involve significant losses. Israel does not dare to endanger the lives of its soldiers in order to fight to end this situation, even if failure to do so undermines its sovereignty and the citizens' confidence in their government. Israel is therefore accepting the dictate of Hamas regarding the conditions for the cease-fire - first and foremost the failure to include Gilad Shalit. He will be released in return for hundreds of terrorists, and Israel will be humiliated and forced to return to a pattern of behavior that it promised never to adopt again.
And if it has done so in the South, why not vis-a-vis Hezbollah as well? After all, the prime minister boasted to Nasrallah that the kidnapping of Eldad Regev and Ehud Goldwasser was one kidnapping too many. But with such demonstrations of fortitude on the part of both the government and the citizens, is it any wonder that on the verge of completing the deal, Nasrallah added Palestinian terrorists to the list of those to be released?
The affair of the cease-fire (with firing that has not ceased) with Hamas, and the affair of the overly generous concessions to Hezbollah - and almost certainly only in return for dead bodies - would not have taken place had it not been for the worrisome connection between a civilian public that lacks tolerance for suffering, and a government whose only goal is survival. And thus the citizens and the government are postponing the inevitable, in other words, mortgaging the future. After all, it is clear to everyone that the enemy that will become stronger will wage a far more bitter and difficult war against those who desire a lull now.
It would make some sense if in return for strategic, moral and political folly in the North and South we would at least receive Shalit, Regev and Goldwasser alive and well. But to sow the seeds of the next kidnappings - and at an exorbitant price - is intolerable folly and loss of wisdom.

German mediator to secure Hezbollah, Israel signatures on prisoner swap accord
Haaretz 26/06/08
By Barak Ravid, Yossi Melman, and Jack Khoury
Israel and Hezbollah have a written agreement on a prisoner exchange that the cabinet will deliberate on Sunday and possible approve. If approved, Israel will sign the deal that will then be taken to Beirut by the German mediators for Hezbollah's signature.
Meanwhile, Israel will present Egyptian mediators in Cairo later today with new formulas that it hopes will result in progress in the case of the abducted IDF soldier Gilad Shalit, who is being held by Hamas in the Gaza Strip. Advertisement
The cabinet will meet Sunday to hear a briefing and deliberate over the prisoner exchange deal Israel reached with Hezbollah through German mediation. Ofer Dekel, the official charged with the negotiations on the prisoners, will brief the ministers and respond to their questions.
So far the deal with Hezbollah is described in official Israeli circles as "a framework agreement."
Prime Minister Ehud Olmert said that he believes "we will be able to reach the moment of decision with a clear conscience."
Speaking in the Knesset yesterday, Olmert said that "among decisions facing a prime minister, this is one of the most difficult. On balance, along with the boys and their families, are sadness, pain and values on which we have grown as a nation and a state. All these are stripped off in one hard and complex moment when a decision needs to be made and we will make it."
If the cabinet approves the accord, as it is currently inclined to do, Israel will sign an agreement that will be carried by German mediators to Beirut, where a Hezbollah representative will be asked to also sign it. The deal would then be carried out in a week or two.
The proposed agreement comprises more than 10 detailed sections, some known to the public but others still classified.
Israel is expected to transfer to Hezbollah four of its members captured during the Second Lebanon War, and the remains of eight Lebanese burried in Israel - and Samir Kuntar, a terrorist involved in a murderous raid on the northern coastal town of Nahariya in 1979.
In return, Hezbollah will transfer the two Israel Defense Forces reservists Ehud Goldwasser and Eldad Regev, abducted in a cross-border raid by Hezbollah in July 2006, which triggered the Second Lebanon War.
The radical Shi'ite group will also transfer a detailed report on the fate of downed air force navigator Ron Arad, captured in Lebanon in 1986.
Israeli political sources said yesterday that they fear that Hezbollah will up the ante, increasing its demands at the last minute. The same sources pointed out that because Hezbollah follows domestic conditions in Israel closely, the recent debate that the deal has sparked, with vocal opposition for the release of Kuntar, may lead the Lebanese group to cause its own delays to the process.
This concern was echoed yesterday in the Lebanese daily Al-Ahbar, with ties to Hezbollah, which warned in an editorial that unless the deal goes through in the coming days, Hezbollah would raise its price in the future.
One of the most vocal opponents of the deal, Mossad chief Meir Dagan, met Tuesday night with the father and brother of Eldad Regev. Dagan told them that Israel has intelligence information that the two captured soldiers are not alive.
Dagan told the Regev family that he opposed the release of Kuntar, "because he is part of a different deal - the one of Ron Arad. Everything depends on the report that [Hezbollah chief Hassan] Nasrallah will deliver and detail the efforts that have been done over the years in order to learn what befell Arad. If the report is sufficient in my eyes - I will consider changing my opinion."
The Regev family pressed Dagan on the intelligence report regarding his claims that the two prisoners are dead, but said that he refused to reveal his sources. Dagan insisted that even though no one has seen Regev and Goldwasser, the report is reliable.
In a meeting in Cairo today, Dekel will discuss with Egypt's Chief of Intelligence in Cairo, General Omar Suleiman, Israel's new proposals to further the deal on Shalit.
Dekel is expected to tell Suleiman that Israel expects Hamas to show greater flexibility regarding the list of prisoners it wants freed in exchange for Shalit.
Suleiman is scheduled to hold a similar meeting with Hamas representatives in Cairo next week.
Intensive indirect negotiations are planned at a later stage, where representatives of Israel and Hamas will be based in the same hotel, and the Egyptian mediators will shuttle between them with proposals and counter-proposals.
Meanwhile, following discussions last night between Deputy Defense Minister Matan Vilnai and defense establishment officials, a decision was made not to open the crossings between Israel and the Gaza Strip today.
The crossings were opened on the day the agreement between Israel and Hamas went into effect last Thursday, but a decision was made to close them again Tuesday evening, following a violation of the cease-fire by Islamic militants firing Qassam rockets against Israel.
Officials expressed concern during the meeting that a continuation of the closure may result in a complete breakdown of the cease-fire agreement with Hamas.
However, following a reassessment of the security situation, it was decided to open the crossings over the weekend.
Today's security assessment will also determine whether extensive quantities of goods and supplies will be allowed into the Gaza Strip.
Security officials said yesterday that Israel would permit humanitarian cases to cross into Israel for medical assistance through the Erez crossing.
*Yoav Stern and Shahar Ilan contributed to this article.