LCCC NEWS BULLETIN
JUNE 20/2006

Below News From the Daily Star for 20/06/06
Beirut steps up search for head of terror group tied to Mossad
Lebanese officials lash Romania over possible snub to Lahoud
Bombing near Ain al-Hilweh targets ambulance donated by Rafik Hariri
Rotary Foundation boss uses tour to raise awareness
Al-Qaeda in Iraq 'abducts' 2 US troops, 4 Russian diplomats
Lebanese officials lash Romania over possible snub to Lahoud
Ecole Superieure des Affaires wishes 'great adventure' for grads
Beirut gets ready for space tourism
Aridi throws 'procrastination' barb back at Syria
Awareness Corners offer oases of learning
Ex-Google honcho 'comes home' to Lebanon
Below News From miscellaneous sources for 20/06/06
DEBKAfile Exclusive: New Syria-Iranian defense treaty opens way for Iran`s Revolutionary Guards to deploy on Israel’s Golan border by summer’s end
Explosion destroys ambulance in Lebanon-Bahrain News Agency
Israel conditionally offers to leave disputed territory in Lebanon-IsraPundit
Lebanon is studying spy net-Bahrain News Agency
IDF officer jailed for 15 years for spying for Hezbollah-Ha'aretz
MK Eitam: Iran in Israel's backyard-Ynetnews
The Iraq debate: US cannot win this war with force of arms-Salt Lake Tribune
Mubarak steps in to settle Jordan-Syria row-Gulf News
Lebanon: Tourism on the Mend-Naharnet
Moallem: Saniora Missed his Chance to Visit Damascus-Naharnet
Two Lebanese Businessmen Freed in Iraq-Naharnet
Douste-Blazy: Syria Should 'Take up Hand Stretched Out by Lebanese-Naharnet

Mixed signals over diplomatic relations between Syria and Lebanon-AsiaNews.it
Syria tighten noose on political activists-UPI
Lebanese ex-PoW meets Iranian FM Mottaki-IranMania News

DEBKAfile Exclusive: New Syria-Iranian defense treaty opens way for Iran`s Revolutionary Guards to deploy on Israel’s Golan border by summer’s end
June 19, 2006, 11:57 AM (GMT+02:00)
Iranian defense minister Gen. Mustafa Najjar said: “Syria’s security is part of Iran’s security,” when he signed a new military treaty with his visiting Syrian counterpart, Gen. Hassan Turkmani (picture) in Tehran last Thursday June 15.
Sunday, June 18, Israel’s parliamentary foreign affairs and defense committee inspected its northern border, along with the deputy chief of staff Moshe Kaplinsky and OC Northern command Udi Adam. Both Tehran and Damascus referred to the tour as Israel’s response to their new treaty.
DEBKAfile’s military sources add: At the signing ceremony, the Syrian official waved away reporters’ questions on whether Iran would be establishing a military base in Syria – “The language of a (foreign) military base in our country is alien to us. I want to say that it is not on the agenda.”
Nonetheless, military sources note that he rejected the term “bases” - but did not rule out “foreign forces” in nSyrian bases, which Persian Gulf and Pakistani military sources are certain was agreed secretly between the two countries. They have learned that Iran has offered to deploy Revolutionary Guards on the Golan border with Israel by the end of summer, because as Najjar said at the signing: “We have a common front against Israel’s threats.”
DEBKAfile’s Tehran sources disclose the Iranians seek to attain three objectives by deploying RG units to the Golan heights:
1. Another direct front line against Israel.
2. A forward position for an Iranian electronic warning station to sound a timely alarm of the takeoff of American warplanes or missiles from the eastern Mediterranean basin on their way to attack.
3. The station can also keep electronic track of movements on Israeli air and missile bases, covering also Arrow anti-missile missile systems.
The Syrian military delegation, which spent five days in Tehran, brought a year of secret negotiations to their conclusion. The breadth of Syrian-Iranian military relations can be measured by the military treaty’s financial scope of $800 m and the size of the delegation Damascus sent to Tehran - 60 officers representing every branch of the Syrian armed forces, including intelligence and munitions industries. For years, both countries have supported the Lebanese Hezbollah militia and anti-Israeli Palestinian factions including Hamas and Islamic Jihad, which maintain headquarters in Damascus

Where is the General Aoun so many Lebanese were waiting for?
Tuesday, June 20, 2006
Editorial
For years, even during his exile, former Lebanese Army General Michel Aoun remained the custodian of a political force in Lebanon through his leadership of the Free Patriotic Movement (FPM). The popular movement, which later became a political party, called for a refreshing change in the country, even if that required making difficult decisions. Given that the country remains a distant cry from their envisioned liberal, secular democracy, Aoun's followers, who are made up of enthusiastic, educated and motivated Lebanese, must feel today that they are still waiting for the general's return.
Undoubtedly, the man has provided drive and energy to the Lebanese political scene. His return from exile was hailed as a tsunami, a wave that would engulf all the other political ripples that were created in response to the killing of former Premier Rafik Hariri. But now all of the indications are that Aoun's focus on the presidency has made his followers lose sight of the political program that he touted as the dawn of a new era.
True, Aoun has inked a deal with Hizbullah - which was no easy feat, considering that the majority of his followers are Christians who harbor feelings of apprehension about Hizbullah's armed wing. Many credit this deal for the relative stability in the country, but many others see the agreement as a little more than an investment in Aoun's campaign for the presidency.
Aoun gained political supremacy because of a freshness of approach and a willingness to tackle (sometimes rashly) otherwise intractable issues. But with all of his energy focused on the presidency, Aoun's movement has lost direction, and as a consequence is losing its momentum. With all eyes set on Baabda, no one has noticed that the FPM's platform, which included calls for judicial, administrative and economic reform, has all but fallen to the wayside. This is perhaps the biggest blow to the hopes of the Lebanese majority, who have for many years been yearning for dramatic change. One hopes that Aoun, who like Narcissus has been drowning in his own image, will soon emerge from the pond of his personal ambitions and focus on the ocean of work that must be done to create the Lebanon that his followers envision.

Aridi throws 'procrastination' barb back at Syria
cabinet puts off decision on where to locate dump sites
By Nafez Qawas
Daily Star correspondent
Tuesday, June 20, 2006
BEIRUT: Information Minister Ghazi Aridi on Monday dismissed Syrian claims that Premier Fouad Siniora had "procrastinated" in making a visit to Damascus. "The procrastination came from the Syrians not from Prime Minister Fouad Siniora," Aridi said. Syria's Foreign Minister, Walid Moallem, had said in comments published on Monday in Kuwaiti daily Al-Anbaa that "Siniora procrastinated too much in visiting Damascus, as he didn't take the hint we sent with Speaker Nabih Berri, who advised him to do so." Aridi remembered things differently. "Berri told Siniora that Syrian officials had set May 17 to meet with him," he said. "However, Siniora had some commitments and proposed May 20 or 22 for paying the visit. Berri replied that the Syrians postponed the meeting."
Aridi added that his comments were his own, and not an official statement on behalf of the Cabinet.
Aridi spoke after an extraordinary Cabinet session, headed by Siniora at the Social and Economic Council in Downtown Beirut, in the absence of ministers Elias Murr, Fawzi Salloukh, Ahmad Fatfat, Jihad Azour, Charles Rizk and Neameh Tomeh. The session had been dedicated to a discussion on Environment Minister Yaacoub Sarraf's solid waste treatment plan.
Cabinet postponed approval of the plan in order to dedicate further sessions to the issue.
Speaking before the session, Aridi said the Democratic Gathering ministers rejected Sarraf's plan "because it consisted of creating a dump in Jiyye, while the Chouf region is suffering the most."
"Everybody knows about the Naameh waste dump, which is exposing the whole area to great danger," he added.
Sarraf's plan consists of creating six regional waste dumps in Lebanon, in addition to two already present in Bsalim, Metn and Zahle.
The problem lies within Mount Lebanon, where the plan proposes that a dump should be located in Jiyye and another in Mounsif, Jbeil. These locations are opposed by popular and environmental committees.
Sarraf said each qada, or small district, would treat their own waste, but that the burial of waste would be done in four regions, with two dumps in each.
"The problem is increasing and needs to be settled soon," he added.
MP Akram Chehayeb praised the session's discussion on the plan, despite its coming rather "late."
"Choosing the areas where waste dumps should be placed is the problem," Chehayeb said in an interview with Voice of Lebanon radio. "The ministry and the Council for Development and Reconstruction have conducted comprehensive studies and chosen several areas that will probably create a problem because some political forces will oppose those choices."
The MP went on to say that "it will not be easy for ministers to come up with a decision during the session."
Fadl Shalak, president of the Council for Development and Reconstruction, said the plan "consists of creating waste dumps in Lebanon's five governorates during a period of four months after getting the Cabinet's approval.
"We are almost done with the dumps' locations in the North, South and the Bekaa. We need an agreement over a waste dump in southern Beirut and another in northern Beirut to start executing the plan."Meanwhile, State Minister for Administrative Affairs Michel Pharaon told the radio station the solid waste file "needs to be deeply discussed even if it takes ministers several sessions to resolve it."Asked if Siniora's economic plan would be discussed again, Pharaon said: "The plan was from the beginning a proposal to be thoroughly discussed. The final proposal should be submitted to the Cabinet during those two weeks so that the Beirut I donor conference can be held in September."
The minister added that several economic parties were meeting to give their proposals for the conference.
The international donors' conference is aimed at rallying financial aid for Lebanon from donor states, the World Bank and International Monetary Fund. Lebanon hopes to receive more than $5 billion in soft loans from donor states to help reduce debt servicing. But the United States, Britain, France and the World Bank insist that the government present a viable economic plan before they make any such financial commitments.Lebanon's Finance Ministry temporarily shelved the first economic blueprint due to strong objections to new taxes. Finance Minister Jihad Azour promised to make amendments to the proposal.

Explosion destroys ambulance in Lebanon
date: 19 06, 2006
Beirut, June. 19, (BNA) An explosion blew up an ambulance dawn today near Ain Al Helwa, in Sayda area.
The explosion targeted the ambulance donated by Al Hariri Charity Fund to Al Tameer people. Future television stated that the explosion which was caused by an explosive pack caused the occurrence of a small hole in the ground under the ambulance which was completely damaged. Moreover, a number of cars parked near by were also damaged along with the entrance of a traditional coffee shop.

Lebanon: Tourism on the Mend
Lebanon is one of those countries blessed with most of what it takes to attract visitors year round: sun, sand, stunning scenery, snow and a burgeoning hospitality industry catering to the whims of holiday-makers.
However, it has also had what most countries seeking a thriving tourism industry don't want: bad headlines. While the tourism sector experienced slow and steady growth after the end of the 1975-90 civil war, it took another hit last year after a resurgence of violence, with the assassination of former Prime Minister Rafik Hariri in February 2005 making news headlines around the world. That act, and a spate of other high profile attacks, saw foreign visitor arrivals fall by an estimated 11% in 2005, dropping to just over 1m.
A year after the Hariri assassination there is new optimism in the Lebanese tourism sector, with investments being made and visitor numbers expected to break records.
In an interview with Reuters in mid-May, Lebanese Tourism Minister Joseph Sarkis estimated that 1.6m tourists would visit Lebanon this year, bringing in some $2bn of much needed foreign currency. However, he added a note of caution by saying that the positive projections were dependent on the continuity of stability and the absence of further violent incidents.
The unstable security situation had a negative effect on tourism last year, although it was not that dramatic, Sarkis told Reuters. But with the halt in security incidents the situation has been improving and we have very encouraging signs this year.
Another to share the sense of optimism for the sector is head of the IMF's Middle East and Central Asia department, Mohsin Khan. In May, the Fund released its latest country report on Lebanon, with many of the dire warnings about the need to reduce debt levels and implement economic reforms repeated as they have been in previous studies.
However, while the IMF report noted that tourism had suffered in 2005, Khan said things looked better for this year.
They are expecting the best year in the history of tourism, he said in an interview with the Agence France Presse (AFP) on June 9. Some of that optimism is justified by the figures, with 350,000 overseas tourists visiting Lebanon in the first four months of the year, a 30% increase on the same period in 2005.
While many of the attractions that made Lebanon a favorite with European tourists before the civil war still remain, the demographics of overseas visitors has changed. Up to 45% of overseas arrivals are from Arab countries, especially those from the Gulf Cooperation Council (GCC) zone, with the shift in part seen as a response to stricter visa requirements for Arab tourists imposed in the wake of the September 11, 2001, attacks in the U.S.
This shift has also been reflected in foreign investment in the Lebanese tourism sector, with firms from a number of GCC countries buying into the industry. The latest of these was the Bahrain-based International Investment Bank (IIB), which on June 13 announced a $25m mixed-use real estate development in downtown Beirut, the 29-storey Grand Tower.
According to Aabed al-Zeera, IIB's chief executive officer, the move is a reflection of the economic potential of Lebanon.
Lebanon is rapidly re-establishing itself as a leading tourism and business hub in the Middle East region, and we are confident that this is the right time to invest in its further growth, al-Zeera said.
Another major project with Arab involvement is the rebuilding of the Grand Hyatt Beirut, being financed by a joint Saudi Arabian-Lebanese holding company. Destroyed in the civil war, the hotel is scheduled to reopen its doors in late 2008.
One who touts the benefits to be had from investing in Lebanon's tourism industry is Nabil Itani, the chairman and general manager of the Investment Development Authority of Lebanon (IDAL), the national development authority charged with facilitating major construction projects and other investments in Lebanon.
The current regional economic boom, driven by factors such as high oil prices and a strong real estate sector, is resulting in investor-friendly conditions that form a critical phase for furthering Lebanon's economic prosperity Itani told reporters on June 12 during a media tour of projects supported by IDAL. We must take full advantage of current economic progression by making greater efforts to attract Arab investment to all sectors of the Lebanese economy by showcasing the prosperity and stability of the country and highlighting the competitive nature of sectors such as tourism.Oxford Business Group
Beirut, 19 Jun 06, 11:10

Lebanon is studying spy net
date: 19 06, 2006
Beirut, June. 19 (BNA) Lebanese Minister of Foreign Affairs and Emigrants Fawzi Salloukh said that his ministry is studying now a complete file on a spy net controlled by Israel in Lebanon to present it to the security council.
In an interview with Lebanese daily, Salloukh said that Lebanon will ask the Security council to hold a meeting for discussing this issue , adding that the ministry is prepared to present all the results including the current one with members controlled by Mosad.

IDF officer jailed for 15 years for spying for Hezbollah, drug dealing
By Yuval Azoulay and Amos Harel, Haaretz Correspondents, and Agencies
A military court on Sunday sentenced Lieutenant Colonel Omar Al-Hayeb to 15 years in prison, after he was found guilty of spying for the Lebanese militant group Hezbollah and drug trafficking.
The former tracker for the Northern Command continued to claim his innocence after the verdict was handed down, charging that he had been framed and was a victim of persecution because he is an Arab.
"I didn't confess, I won't confess," Al-Hayeb told reporters. "I didn't do anything. The only reason they are coming after me is because I am an Arab."
One of his attorneys, Barry Rosenthal, said his client would appeal the conviction and sentence.
Al-Hayeb, a resident of the Bedouin village of Beit Zarzir, was arrested in 2002 as a result of a wide-ranging investigation into drug-smuggling. The six-month investigation also led to the arrests of 18 other IDF soldiers, some of them career soldiers.
Al-Hayeb had been in contact with Lebanese drug-dealing figures with the intention of smuggling drugs into Israel.
At a certain stage Al-Hayeb agreed to a request made by a Lebanese friend to meet with Hezbollah representatives. The meeting, which would have taken place in Jordan and Saudi Arabia, never took place.
Hezbollah said at the time of the indictment that it was "not obliged to confirm or deny" the spying reports.
Security officials involved in the investigation say their suspicions were backed up by Al-Hayeb's eventual confession. The tracker was on his way to a meeting on the Lebanese border when he was arrested.
Al-Hayeb was carrying classified military maps, a list of IDF communications frequencies and night-vision goggles when he was detained. It is suspected Al-Hayeb planned to hand these items over to Hezbollah in exchange for money or drugs that he could then sell. As the highest-ranking Bedouin officer in the IDF, Al-Hayeb was frequently cited as an example of advancement possibilities for Israeli Arabs who serve in the military. He was himself gravely wounded by a Hezbollah roadside bombing while serving in Lebanon in 1996. Surgeons had to remove one of his eyes. The injuries left him partially paralyzed and with shards of metal still lodged in his head.

The Iraq debate: U.S. cannot win this war with force of arms
Tribune Editorial
There is no U.S. military solution to the chaos in Iraq. The Iraqis must solve their differences politically.
So the debate in Congress about whether the United States should "stay the course" or "cut and run" almost misses the point.
The real question for the United States is whether its continued military effort there helps or hinders the Iraqis' search for a political solution. If U.S. forces are buying time for the Iraqi government to find its footing and resolve the warring factions' disputes over sectarian and ethnic power-sharing, the role of Islam and oil revenues, then perhaps it is worthwhile for U.S. forces to stay.
If, on the other hand, there is no hope of a political solution, or if the U.S. presence is actually preventing that from happening, then the United States should bring its soldiers home. With every passing day, this is the picture of Iraq that comes more sharply into focus.
From what we read about the sectarian killing in Iraq, we believe that the chances of the new government creating a political consensus, suppressing the violence and re-establishing a unified nation are small. But the situation is dynamic, and the next six months should provide some final answers.
For now, the U.S. forces should stay to provide firepower for the government. A timetable for withdrawal would only
aid the planning of the government's opponents. However, establishing measures for political progress would help the Congress decide when it is time to pull U.S. forces out. The administration and others argue that the power vacuum that would be created with U.S. withdrawal would suck Iran's neighbors - notably Iran, Syria and Saudi Arabia - into the fight and possibly destabilize the whole neighborhood. That's true, but it's also true that these parties already are involved in Iraq. It is hard to say whether the withdrawal of the Americans and the British would or could make things worse. In the meantime, the administration and the Republicans in Congress at least should raise the real issues, rather than continually repeating the falsehood that the United States invaded Iraq because of 9/11. In truth, the misbegotten American invasion and the mismanagement of its aftermath created the conditions in Iraq for al-Qaida to exploit, where none existed before. That's the hole we're still trying to dig out of.

Lebanon is studying spy net
date: 19 06, 2006
Beirut, June. 19 (BNA) Lebanese Minister of Foreign Affairs and Emigrants Fawzi Salloukh said that his ministry is studying now a complete file on a spy net controlled by Israel in Lebanon to present it to the security council.
In an interview with Lebanese daily, Salloukh said that Lebanon will ask the Security council to hold a meeting for discussing this issue , adding that the ministry is prepared to present all the results including the current one with members controlled by Mosad.

Israel conditionally offers to leave disputed territory in Lebanon
Filed under: Front Page, Arabs, Israel
Ya Libnan
Paris, France - Israeli Prime Minister Ehud Olmert has reportedly told French President Jacques Chirac that Israel is willing to leave the Shebaa Farms region once the area officially comes under Lebanese sovereignty.
The “Lebanese sovereignty” caveat set by Olmert involves two conditions: the proper demarcation of borders between Lebanon and Syria, and the deployment of Lebanese troops along the southern border. Olmert asked Chirac to exert pressure on the Lebanese government to deploy troops along the border with Israel when Tel Aviv pulls out of the last remaining region it still occupies in Lebanon. (The condition should have been threefold; that Hezbollah disarms first, Lebanese army deploys in south and Lebanon signs a peace treaty.)
The Shebaa Farms lie on the border between Lebanon, Syria and Israel. The mountainous region was seized by the Jewish State when it occupied the Golan Heights after the 1967 Arab-Israeli war.
When Israel ended its 22 year occupation and withdrew its troops from Southern Lebanon in 2000, U.N. cartographers declared Shebaa part of Syria, giving Israel the green light on U.N. Security Council 425 that demanded an end to its occupation of Lebanon. However, Lebanon’s political leaders have agreed that it is necessary to delineate the common border with Syria to officially confirm the Lebanese identity of Shebaa.
In May, the U.N. Security Council passed Resolution 1680 urging Syria to respond to the Lebanese government’s request to demarcate the frontier and establish diplomatic relations with Beirut.
Syria rejected the resolution saying it was unprecedented international interference in bilateral relations.
Anti-Syrian Lebanese politicians argue that Syria does not want to confirm Lebanon’s sovereignty over Shebaa as this would strip the Syrian-backed Hizbullah of its argument that it needs its weapons to liberate Lebanese territory still under Israeli occupation. Hizbullah is the last Lebanese group that still possesses arms since the Civil War ended in 1990. It is under internal and international pressure to disarm in abidance with U.N. Security Council Resolution 1559 that calls on all militias in Lebanon to give up their weapons. Despite its withdrawal in 2000, Israel still occasionally clashes with Hizbullah. The last border flare up was last month and followed the assassination of two Islamic Jihad leaders in Sidon allegedly by agents working for Israel who were recently captured.Arabs, Israel, Lebanon, Shebaa farms, Syria Posted by Ted Belman @ 6:54 pm |

Mubarak steps in to settle Jordan-Syria row
AP- Sharm Al Shaikh: Egyptian President Hosni Mubarak met Jordanian King Abdullah II on Sunday to discuss "certain Arab differences" and Cairo's efforts to resolve them, in reference to recent tensions between Amman and Damascus.
The two leaders met at the Red Sea resort of Sharm Al Shaikh, where Mubarak is due to meet his Syrian counterpart Bashar Al Assad tomorrow, official sources said. In remarks to the Egyptian weekly Akhbar Al Youm on Saturday, Mubarak said the summits were aimed at "sorting out differences" between Syria and Jordan.
In April, the Jordanian government announced the arrest of an undisclosed number of members of the Palestinian movement Hamas, who it said received orders from a leader based in Syria to carry out attacks on officials in the kingdom.

MK Eitam: Iran in Israel's backyard
Ynetnews 19.6.06: Members of Knesset's Foreign Affairs and Defense Committee tour northern border, express concerns about cooperation between Hizbullah, enemy states
Members of the Knesset's Foreign Affairs and Defense Committees conducted a tour of the northern border, and heard briefings by Deputy Chief of Staff Major General Moshe Kaplinsky and Northern Command Chief Udi Adam on the security situation in the IDF's arena against Lebanon and Syria, Hizbullah's activities, and the ongoing threat to kidnaps soldiers or civilians along the border.
For some of the members, it was their first opportunity to view from up close the missions and challenges facing the IDF in the coming period.  Knesset Member Effie Eitam, of the National Union-NRP party, addressed the link between Hizbullah, Syria, and Iran, saying: "Iran is already here, in the State of Israel's backyard, and when we weigh our relations with them and with Hizbullah, we must realize that this not simply a lone terror organization, but the creation of a significant system. Hizbullah is receiving a lot of money and arms through Syria, and the Iranian involvement is deep."
Knesset Member Ran Cohen (Meretz) spoke about what the Lebanese government has termed 'the uncovering of a spying cell working for Israel."  "The forces involved in the internal Lebanese struggle are trying to cause Israel to enter a military conflict. All provocations and attempts to drag Israel into the Lebanese whirlpool will cause much blood-letting on both sides. The safeguarding of calm as a goal of the Northern Command is the most correct course for this time," said Cohen.
The committee's Chairman, Knesset Member Tzachi Hanegbi (Kadima), discussed recent reports on the possibility of returning the Shebaa Farms to Lebanon. "There is currently a division between Syria and Lebanon on marking the border between them. There is agreement on the matter. As far as I know, the issue of the Sheba farms is on the government's table, and has not yet been the topic of an in depth meeting in the Foreign Affairs and Defense Committee," said Hanegbi.
(06.18.06, 20:39)

Douste-Blazy: Syria Should 'Take up Hand Stretched Out by Lebanese'
French Foreign Minister Philippe Douste-Blazy has urged Syria to cooperate with Lebanon in establishing diplomatic relations and delineating the common border.
Syria should "take up the hand stretched out by the Lebanese" in order to "demarcate the border" with Lebanon and "establish full diplomatic ties" with its neighbor, he told reporters Sunday during a short visit to Qatar.
Top rival leaders in Beirut have agreed at national dialogue talks to exchange embassies with Syria and draw the common border but Syria has been procrastinating in responding to the Lebanese demands that are backed by U.N. Security Council Resolution 1680. Qatari Foreign Minister Sheikh Hamad bin Jassem bin Jabr al-Thani also called for "healthy relations" between the two neighbors and urged them to mark their common border and establish diplomatic ties.
Douste-Blazy earlier told business leaders that French firms were keen to do business in gas-rich Qatar, which plans investments of up to 130 billion dollars over eight years. He told reporters he had conveyed to Qatar's emir, Sheikh Hamad bin Khalifa al-Thani, a "message of profound esteem and sincere friendship" from French President Jacques Chirac.(AFP-Naharnet) Beirut, 19 Jun 06, 10:34

FEATURE - Russia pragmatic on arms but is trade healthy?
2006-06-19 09:42
Missiles to Syria and Iran, warplanes to Venezuela and Myanmar, helicopters to Sudan, Russia goes its own way when it comes to selling arms, seemingly immune to ethical debates that affect the industry elsewhere, reports Reuters.
While European Union members argue over whether to lift a weapons ban against China, almost half of Russia's billion arms sales last year went to Beijing. As the White House struggles to persuade Congress to approve a US-India nuclear deal that some lawmakers fear could spark an arms race, Moscow is completing two atomic plants for New Delhi.
Russia's arms industry is one of the few national manufacturers that can compete with western firms on equal terms, and it is a both a source of prestige and key to Moscow's drive to gain new markets for its exports. "Let's have no illusions, if we stop sending arms to export, then someone else will do it," Sergei Chemezov, head of state arms export monopoly Rosoboron export, said in a rare interview with Itogi business magazine last year.
"The trade in weapons is too profitable for the world to refrain from it. Happily, Russia has understood this. The period of democratic romanticism has changed into a period of business pragmatism," said Chemezov, a close friend of President, Vladimir Putin since they served together in the KGB.
But this pragmatism has drawn international criticism, and some experts say the apparent health of Russia's arms exports actually conceals an industry in decline, still making money from the leftovers of the Soviet military past. Russia earns around billion a year from the weapons trade -a figure dwarfed by its exports of energy, metals and timber.Its main clients are India and China, but it has also received orders from Iran, Syria, Venezuela and the Palestinians -buyers some Western countries shy from dealing with.
Russia says it abides strictly by international embargoes, and does not engage in trade with banned regimes. But rights groups criticise it for not unilaterally limiting itself. The International Action Network on Small Arms, IANSA, says Russia has sold weapons to states whose forces have committed abuses.
"In Russia's export control system, there is virtually no reference to controlling arms exports for reasons connected with respect for international human rights and humanitarian law," the network of agencies said in a June briefing paper. Rosoboron export officials declined requests for an interview for this story, but customs figures show Russia's arms exports -of which it controls 90%, have grown by almost 70% since Putin established the agency in 2000.
The Kremlin hopes the increasingly aggressive consolidation of the industry at home will make the export trade a cornerstone of its system of state capitalism, before the post-Soviet decline that has plagued production becomes irreversible.Some experts say that point has already been reached. "The industry is in deep, terrible crisis. I believe it is beyond recovery because no components are produced. They use old components. The industry has disintegrated, and they have sold the equipment," said Pavel Felgenhauer, an independent analyst who closely follows the Russian arms trade.
Very few new weapons were being designed and more importantly, component factories had closed for a lack of new orders and their skilled workers had dispersed. He said, "This is not an industry, it is a trade. There is no growth in this industry. The Soviet stockpiles were large enough to keep selling for years and years to come, but the trade was not creating employment or any long-term growth."
"This is a sell-off. These are good weapons for Sri Lanka, say, or Africa. They are easy to use for badly trained personnel," he said. "As for the future, it depends where war will happen." General Yuri Baluyevsky, head of Russia's General Staff, said last year he feared the domestic weapons industry might not be large enough to supply the armed forces by 2011.
That, experts say, has led the Kremlin to forge a state arms champion out of Rosoboron export, originally an export agency. It has taken control of Russia's top carmaker Avto Vaz, has been eyeing truckmaker, Kamaz and is in talks to buy into VSMPO-Avisma, the world's top titanium maker, reportedly to get hold of Russian firms with easy access to a metal that is key to the aerospace industry. "It is a kind of state capitalism. Rosoboron export controls all military exports and we compete well in this sphere, but we need to keep working at it," said Gennady Raikov, a member of parliament who worked for decades in rocket design and aviation. He said the new consolidated system reinforced in March, when Defence Minister, Sergei Ivanov was put in charge of the whole industry, was a return to the Soviet system of having a single over seer of the military-industrial complex. "To perfect our technology, we need to pull together," said Raikov, who said Russian scientists could create systems as good as Western powers but that investment was needed.

Lebanese ex-PoW meets Iranian FM Mottaki
Monday, June 19, 2006 - ©2005 IranMania.com
LONDON, June 19 (IranMania) - A former Lebanese prisonor of war and prominent personality Mohammad Dairani met with Foreign Minister Manouchehr Mottaki, IRNA reported. Referring to the resistance shown by Dairani during his years of imprisonment, Mottaki said such resistance is a symbol of the continuing struggle against Israel and the key to the victories of the Lebanese people. On developments in Lebanon, he said that the Hezbollah has chosen to take the prudent approach towards the opportunist moves of the Israelies. "The Islamic Republic of Iran believes reenforcement of unity and solidarity as well as a prudent approach by Islamic and national groups in Lebanon is the strategy that will succeed against wrongdoers," Mottaki said. Expressing gratitude for Iran's support to the legitimate resistance in Lebanon and Palestine, Dairani said that the great victory achieved in Lebanon in the domestic and foreign areas can be attributed to this resistance.