LCCC NEWS BULLETIN
MARCH 25/2006

Below News from the Daily Star for 25/03/06
Siddiq denies retracting testimony in Hariri case
Lebanese on first official tour of Palestinian camps
UN envoy: No difference between Taif and 1559
Roed-Larsen: Diplomatic ties only way to ease Lebanon-Syria tensions
Fadlallah warns against non-Lebanese 'solutions'
Al-Manar shrugs off U.S. decision to freeze assets
UN to vote next week on Hariri tribunal
Tensions mount in political circles over Lahoud's fate
Source of March 14 Forces' optimism not in plain view
Khartoum Summit to issue resolution supporting Lebanon's national dialogue
Bankers warn against raising tax on interest
Downtown businesses cry for help
EU experts may survey Mansourieh power-line problem
Bag of sand prompts bomb rumors
Bahaeddine Hariri Mosque inaugurated
Plan to reorganize Lebanese University faces opposition
Below News from miscellaneous sources for 25/03/06
Hezbollah firm on prisoners-Washington Jewish Week
United States freezes assets of alleged Hezbollah funder-Ha'aretz
SYRIA: 25 'MISSING' LEBANESE IN DAMASCUS' JAILS-AKI
In Lebanon's mass graves, an issue buried but not put to rest-International Herald Tribune
UN's top lawyer sees Hariri court outside Lebanon-Reuters
The Lebanese President and the French Presidency-Randa Takieddine Al-Hayat 25.3.06

Hezbollah firm on prisoners
JERUSALEM (JTA) ‹ Hezbollah is pledging to secure the release of Lebanese jailed in Israel. "The day or night will come when we will fulfill our promise to the detainees and return them to freedom," Hezbollah chief Sheik Hassan Nasrallah said in a Beirut speech Monday. In 2004, Israel freed hundreds of Arab security prisoners, including several Lebanese, in exchange for the repatriation of an Israeli hostage held by Hezbollah and the bodies of three Israeli soldiers killed in a border ambush. But a leading Lebanese terrorist remains jailed in Israel, where security sources say his release could be contingent on Hezbollah supplying information on the whereabouts of missing Israeli airman Ron Arad.

United States freezes assets of alleged Hezbollah funder
By Reuters -The U.S. Treasury on Thursday froze the assets of al-Manar satellite television, the mouthpiece of Lebanon's Hezbollah, which the State Department calls a terrorist organization. The Treasury also blocked any U.S. assets of al-Nour Radio and Lebanese Media Group, which it said was the parent company of al-Manar and al-Nour. It said both media outlets had facilitated Hezbollah's activities, including by supporting fund raising and recruitment. The Treasury's action prohibits transactions between Americans and the designated groups in addition to freezing any assets they may have under U.S. jurisdiction. "Any entity maintained by a terrorist group - whether masquerading as a charity, a business, or a media outlet - is as culpable as the terrorist group itself," Stuart Levey, Treasury's undersecretary for terrorism and financial intelligence, said in a statement. A Treasury statement said al-Manar had also provided support to Palestinian groups defined as "terrorist" by the U.S. government, including by transferring tens of millions of dollars to a charity linked to the Palestinian Islamic Jihad.
The U.S. State Department placed al-Manar on its "Terrorist Exclusion List" in December 2004, which meant foreigners providing support to or associated with the organization could be prevented from entering the United States or be deported.
Lebanese officials called that designation unacceptable censorship and an attack on freedom of speech. There was no immediate response from Lebanon to Thursday's move.
The United States considers Hezbollah a "foreign terrorist organization." The long-standing designation as a "foreign terrorist organization" has broader legal ramifications, such as a ban on material support by anyone in the United States, including money and lodging. U.S. financial institutions must also block funds of such organizations and their agents.
SCUS' JAILS
Damascus, 23 March (AKI) - Despite the denial by the Syrian authorities of the presence of Lebanese political prisoners in the country's jails, a Beirut daily Thursday published a list of 'desaparecidos' whose presence in Syrian prisons has been documented. The 25 Lebanese were reportedly arrested by the Syrian secret services. The daily backs up its allegations with declarations from Syrian embassies in various countries which apparently confirm the detention of the 25 citizens, as well as with documentation given to the men's families by prison authorities. The newspaper also published a photo of one of the 'missing', saying it had been taken by a Syrian prison guard in return for a bribe. The Lebanese government has handed the authorities in Damascus a list of 600 Lebanese who have 'disappeared' in the Syrian prison system. Damascus denies the existence of these inmates, except for some 80 people arrested on criminal not political offences.According to Ghazi Ad, president of the Lebanese prisoners' support committee, who follows the Syrian question, Damascus' reply was "superficial", given that half the prisoners cited by the government had been out of prison for some time.Ad went on to accuse Syria of "avoiding the issue", urging that the question be brought before the UN Security Council.The families of the missing Lebanese men have appealed to the Egyptian and Iranian presidents and to the secretary general of the Arab League to pressure Damascus for the men's release and called for an international inquiry into the prisoners' fate.

In Lebanon's mass graves, an issue buried but not put to rest
By Hassan M. Fattah The New York Times
THURSDAY, MARCH 23, 2006
BEIRUT As a military band played a dirge, the coffins that flowed out of Beirut's central military hospital put some lingering questions to rest, but raised many others.Inside them lay the skeletons of Lebanon's civil war: The remains of men who had disappeared, only to be uncovered last November in a mass grave on the grounds of the Defense Ministry headquarters, a discovery that confirmed persistent rumors. The bodies, identified by DNA tests, were handed over to the men's families Saturday, concluding a wrenching 15- year search for their whereabouts. For a few women like Saide Khawand, Audett Salem and Samia Abdullah, the ceremony was a bittersweet victory, but still not an end to their own search.
They and others like them, mothers and siblings of the more than 600 young men and women who disappeared during and after the war, have held a vigil in a park in central Beirut for almost a year, demanding that the government investigate their cases. To many of them, the ceremony Saturday was a signal that a door might be opening on one of the darkest chapters of the bloody civil war. "This was just the tip of the iceberg," said Ghazi Aad, an organizer and director for Support of Lebanese in Detention and Exile, a group known as Solide that is leading the campaign to publicize the issue. "We have documented several mass graves in Lebanon."
In a country struggling to forget the war among its many religious groups, the Palestinians and regional powers, a war that claimed tens of thousands of lives from 1975 to 1990 and demolished half this city, the women are a reminder of how much remains unresolved. Last April, shortly before Syria withdrew its soldiers from Lebanon under international pressure, the women pitched a tent in Jibran Khalil Jibran Park near the UN offices here, hoping to remind Lebanese and the international community of their plight. These unlikely activists now sit daily in the tent, which is outfitted with beds, a television and a refrigerator, and take turns camping overnight.
"We've been asking and chasing and kissing hands, but got nothing," Khawand said. She has been searching for her brother since he was taken by Syrian security agents in 1992.
Most of them are homemakers, many from middle-class families, and represent a cross section of Lebanon's many sects.
The subject of prisoners is a touchy one in a country where some politicians who now speak of democracy were warlords decades ago, with militias that kidnapped people for money or political gain.
"We have thousands of Lebanese who disappeared during the war, many of them at the hands of the militias, and today many of their warlords are in government," said Aad, the organizer at Solide. "So they don't want to discuss the issue."
Of the 10 bodies buried Saturday, 7 were Lebanese Army soldiers led by General Michel Aoun, who fought the last battle of the civil war in 1990 against the Syrian forces that ended up controlling the country until last year. Another 10 bodies found in the mass grave have yet to be identified.
In December, the authorities uncovered another mass grave on the grounds of the former Syrian security headquarters in Anjar, where 28 bodies were found but have yet to be identified. Aad believes there are numerous other burial sites scattered around the country, left by either Syrian forces, Lebanese militias or Palestinian fighters.
The acting interior minister, Ahmad Fatfat, said the ceremonial burial of the exhumed bodies was "an important signal to the Lebanese people" and "underscores a desire for reconciliation."
But as the mothers stood in the front row of the funeral procession Saturday, some seemed to grapple with the likelihood that their own children might be dead too.
"They gave their children the dignity they deserved," Abdullah said. "And now we want the same for ours."

The Lebanese President and the French Presidency
Randa Takieddine Al-Hayat - 24/03/06//
Once again the Lebanese President Emile Lahoud showed the Lebanese and those who listened to him in the world that he has nothing to do with the traditions of international relations or the laws of diplomacy. His statements on Al Jazeera channel last Saturday, in which he reiterated his criticism of the French President Jack Chirac and insisted on dragging him into an argument that he refrains from entering, was tragic for Lebanon and the Lebanese on all fronts.
It is known that the French President played a major role in the liberation of Lebanon from Syrian forces. France is seeking to strengthen Lebanon's sovereignty, independence, and economic revival. These are matters that President Emile Lahoud does not want to acknowledge because he came to power under the Syrian tutelage whose term has ended. Before the assassination of the martyr leader Rafik Hariri, Syria used to appoint the presidents, thus extended President Emile Lahoud's term. Now, any new president will come by a Lebanese choice. In his TV appearance, Lahoud acted more like a chief of a village rather than a head of state.
Lahoud, who loves swimming once was at his favorite club "Yarze Club", talking on his cellular phone and insulting the French President with a loud voice. This was in the spring of 2004. The "news" reached the French ambassador at the time via an upper-class lady who was at the club.
The international community is right because it does not want to hold an international conference to help Lebanon with Lahoud as president. As long as Lahoud is president, Lebanon will be punished because no one wants to hold the conference in Lebanon. Speaking about General Michel Aoun, President Lahoud said that he was "the son of the same military school", thus, he supports him for the presidency, at the end of his extended. The stance is not in Aoun's interest. Al Hayat still has records of interviews with Aoun when he was in his Parisian exile expressing his negative opinion of the military path of President Lahoud and his relation with the Syrian "occupier." How would Aoun accept to be from the same military school?
The most important accomplishment of the Lebanese dialogue is that it confirmed the existence of a ruling crisis. However, this tragedy must end in order for the Lebanese presidency to return to its normal role with all the active forces and to work for rescuing the tragic and stalled economic situation in the country. All major powers and Arab countries are convinced that the President must be changed in Lebanon. This is not just an American or French request but an Arab one as well. How could Lebanon be hit by an earthquake in the magnitude of the assassination of Prime Minister Hariri and then the Syrian forces leave and the symbol of the Syrian tutelage remains? The change of the Lebanese President must take place by agreement of those engaged in dialogue and everyone has an interest in electing a new president. It is well known that before the extension of Lahoud's term, neither Hezbollah nor General Aoun supported the extension and naturally not the forces that later participated in the "March 14th".
Perhaps the best solution for Lebanon and its international and Arab relations is the election of a new president who would restore the total and active role of the post. This needs to happen in the coming short period or else the situation will deteriorate and become further critical and dangerous.

World Lebanese Cultural Union
President of the Senate
www.wlcu.org
Dear Mr President,
This is not designed to embarrass or humiliate you, but rather to assisst all members of the WLCU to understand the background to the decision to dissolve the World Council Executive; and why everyone should honour it.
Our organization is a growing worldwide body. As such it needs to develop and cultivate the highest level of dignity and honour in its practices, particularly when the representation of all the people in the Lebanese Diaspora is fully active and operational. The best example of that, is when we hold a full Congress to elect a new body of Executives to lead our worldwide organization.
In elections of any nature, contestants will jostle and juggle looking to place themselves in a favourable position for their contest. That is acceptable in any forum.
But what is not acceptable is,
- the falsifying of the right to vote when people are not entitled to vote. That happened and you know that it happened.
- Removing the candidates name from a contest without his permission is also not acceptable. That happened and you know that happened.
- Claiming to have correct and acceptable Proxies when that was an outright misrepresentation, is not acceptable. That happened and you know it happened.
Despite all that happened, I had accepted the results and as you know only too well, I stepped back and gave space to the new administration to put its program to work. The exceptions being, when you sought my opinion and/or contribution, upon the request of which you always received my honest reply.
Then the Senate Investigation Report came out.
The Senate Investigation Report was initiated by then President of the Senate, Sheik Sami Khoury, due to a large volume of complaints which he had received about the processes of the 14th World Congress in Sydney, Australia.
When the Senate Investigation Report had come out, I was in a different position. As the new President of the Senate, I had to make a decision,
would I ignore this report and leave things as they are for the sake of peace?
Would I turn my back on all those who felt that their rights had been trampled upon?
Would that serve the WLCU and the Lebanese Diaspora? or
Would it do more damage down the track? or perhaps,
I should accept the responsibility and the challenge which might seem insurmountable at the moment, but in fact would be the honourable step to take in order to give greater service to you the members and the people we represent, by initiating a self assessment and correction process to clean out our organization from the corruption of bad Lebanese political habits and midemeanors.
As the President of your Senate, I chose to take the decision to declare the 14th World Council Elections as Null and Void; and I called for an Emergency Congress in Washington DC, to correct the situation.
In your capacity as President, if you wanted the whole membership to acknowledge your position as an honourable one, you had no choice but to accept the dissolution and agree to the Emergency Congress in Washington DC. In fact, you should have been the first to support the action.
Any other action on your part will;
1) carry the percetion that you are prepared to support deception, misrepresentation and manipulation in order to hold office for yourself and your team, rather than to lead this organization with honour and respectability for the members of the WLCU and the Lebanese Diaspora.
2) Any other action to hold a different Congress than that which your Senate President has called for, will be an act of deliberately trying to divide the WLCU for your own personal benefit. You will create a breakaway rebellious organization to serve your personal interests ahead of those of the whole Lebanese Population in the Diaspora. That division, should it happen, will sit squarely on your shoulders.
3) Your failure to adopt and support the Emergency Congress in Washington DC, will certainly ensure that your Presidency, in any organization, will be permanently stained with the reputation of Deception, Misrepresentation and Manipulation.
4) Your refusal to accept the decision of your Senate will set an eaxample for others to branch off in the future and create their own organization. Perhaps then, you will understand the severity of your actions of today and your failure to LEAD the organization by example of respecting the decision taken.
Finally, I want to advise you that both yourself and Mr Abi Raad are in breach of the terms of the dissolution of the World Council Executive. You have been issuing press releases without the expressed clearance by my office as the President of the Senate.
I call on both of you to honour the terms until the Emergency Congress in Washington DC.
I sincerely trust that you clearly understand the position.
Joseph P Baini
Senate President

Siddiq denies retracting testimony in Hariri case
Daily Star staff
Saturday, March 25, 2006
BEIRUT: The key witness in the assassination of former Prime Minister Rafik Hariri, Syrian Mohammed Zuheir Siddiq, said on Thursday that he "never retracted his testimony," which he delivered before the international investigation committee looking into the crime. In a statement issued by his attorney in France, Siddiq said: "I didn't go back on my testimony at any time and any information that contradicts my statement is false or stems from bad intentions."
He also said he is "at the disposal of the international investigation committee to contribute to the uncovering of the complete truth."The statement was issued following rumors spread since Tuesday that Siddiq had crucial information to deliver to the media. Between Tuesday and Thursday, a man declaring that he was Siddiq made several phone calls to French journalists, asking them to meet him in a Lebanese restaurant in the fifth arrondissement in Paris. He never showed up.
However, Siddiq's attorney told the Lebanese daily L'Orient Le Jour that his client "has nothing to do with this unknown man." Commenting on Siddiq's statements, former Minister Naji Boustani said: "We know that Siddiq is accused of giving false statements and participating in actions linked to the crime.
"This is why Lebanon asked for his extradition. The verdict by the court of appeals in Versailles strictly deals with the issue of extradition, whether or not it is in conformity with the French Judicial system; the verdict did not mention whether Siddiq is being prosecuted for other reasons in France or not," Boustani stated.
Boustani also said: "We are not against the international authority, but if Siddiq is sure about the authenticity of his statements, why doesn't he put himself at the disposal of the Lebanese judiciary?"
Captain Issam Karam, the attorney of Major General Ali Hajj, said: "Siddiq's statements are worthless," adding that "who delivers a statement and retracts and then reaffirms it again, loses his credibility."
France released Siddiq last week after the French judiciary rejected Beirut's request to extradite him to Lebanon because Lebanon still has capital punishment. - The Daily Star


UN envoy: No difference between Taif and 1559
By Majdoline Hatoum -Daily Star staff
Saturday, March 25, 2006
Interview
BEIRUT: UN special envoy Terje Roed-Larsen, in an exclusive interview with The Daily Star on Friday, said there was no difference between the "principles and spirits" of UN Security Council Resolution 1559 and the Taif Accord. "1559 is the international community's way of supporting Lebanon's Taif Accord ... and meticulously speaking, both are in complete conformity," the envoy said.
Roed-Larsen explained that this conformity stems from the fact that the "Taif is all about the sovereignty, territorial integrity and political independence of Lebanon, and that is what 1559 stipulates."
Accordingly, Roed-Larsen welcomed decisions made by Lebanon's top political leaders last week during the country's national dialogue and gave them significant backing, saying they enjoyed internal, regional and international consensus and "should be implemented without delay.
"Establishing diplomatic relations between Lebanon and Syria and demarcating the borders are the most pressing issues at the moment, and they enjoy comprehensive consensus," Roed-Larsen said.
He added: "There is domestic agreement in Lebanon which is endorsed by all parties; we have a complete agreement by the Security Council on this as well ... and following my visit to several Arab capitals, I have detected that there is complete support by the Arab world on this."
However, he expressed hope that the consensus would be "joined by Damascus.
"We want, and hope, that Damascus will join this consensus and act accordingly," he said. "It takes two to tango."Larsen added: "The tension between (Beirut and Damascus) is so high now and there are so many difficulties between the two countries, but I think that Lebanon's ongoing national dialogue and starting the process on these two issues will be vital and important to secure stability and security."
But the special envoy said he was not going to head to Damascus to discuss this issue with officials there. "I have already met with the Prime Minister of Syria in Moscow and Qatar and we had a very good dialogue about the issues," he said.
Lebanon's ongoing national dialogue has already reached an agreement over demarcating its borders and establishing diplomatic relations with Syria, in addition to disarming Palestinian factions outside refugee camps within a six-month period. But it has yet to find solutions for another two pressing issues mentioned in 1559: the Syrian-imposed extension of
President Emile Lahoud's term, and disarming Hizbullah. Asked about the issue of the Lebanese presidency, Roed-Larsen said that UN Secretary General Kofi Annan had stated generally that no leader should have his mandate extended beyond the constitutionally set term. "And of course this goes for every country, including Lebanon," he said.
The special envoy also described disarming the Palestinian factions outside refugee camps as a "domestically driven process," and commended the approach of Lebanese factions on the basis that it should be addressed on all levels.
"The decision to do this in parallel with dealing with the political, security and socio-economic issues of Palestinian refugees is actually a historical step," he said. Roed-Larsen also said that disbanding Hizbullah could "only be resolved by the Lebanese" through the ongoing talks.
"But in our opinion, the only feasible way of going about this is to mold Hizbullah into the Lebanese Army so that there is full democratic accountability and transparency, and so that there is one government, one law and one army in Lebanon.
"If there is a need for resistance it should be done through the Lebanese army, and through the control of the elected authorities," Roed-Larsen said. Roed-Larsen also said that Syria needs to "to agree Shebaa Farms are Lebanese, in writing and with signatures ... and then both countries need to inform the UN of this."

Lebanese on first official tour of Palestinian camps
By Mohammed Zaatari -Daily Star staff
Saturday, March 25, 2006
SOUTH LEBANON: In the first occasion of its kind, three Lebanese ministers toured Palestinian refugee camps Friday in the capital and in South Lebanon, where they inspected the refugees' living conditions in an attempt to improve their situation.
Education Minister Khaled Qabbani, who headed the group, expressed outrage about the living conditions in the camps.
"What we saw in this camp is a true humanitarian drama that must shake the international consciousness," the minister said.
"It is unthinkable that this endures and that the Palestinians continue in these living conditions which come close to an attack on human dignity and human rights."
Qabbani said the delegation had not raised the issue of UN demands for people living in Palestinian refugee camps to disarm. The visit "concentrated on the humanitarian, civil and political rights of the residents," he said.
Qabbani was accompanied by Social Affairs Minister Nayla Mouawad, Health Minister Mohammad Khalifeh, Labor Minister Tarrad Hamade, Culture Minister Tarek Mitri, Minister for the Displaced Nehme Tohmeh, former Ambassador Khalil Makawi and UNRWA's Director General Richard Cook.
As they left, the ministers placed a wreath of flowers at the cemetery where the victims of a 1982 massacre of camp residents by Israeli-backed Christian militiamen are buried.
The tour began Friday morning in Sabra and Shatila refugee camps and was capped in Sidon where the ministers met with the Palestinian factions' representatives at the residence of MP Bahia Hariri in Majdelyoun.
Speaking following the visit, Khalifeh said: "The Palestinian cause is part of the Lebanese society but Lebanon cannot resolve the Palestinians' problems alone." He also called on the Palestinians to be "united" and "not to take advantage of political disputes that might affect their social situation."
The ministers also visited Rashidieh and Al-Chimali camps and listened to the officials' and people's complaints. They met with Fatah Secretary General for Lebanon Sultan Abu al-Aynayn and Fatah official in South Lebanon Khaled Aref.
Qabbani told the Voice of Lebanon radio station that "Prime Minister Fouad Siniora wanted to break the rule and take the Palestinian issue away from its security aspect. He was trying to address the question of the Palestinian man living in the refugee camps, who is suffering much in terms of his habitat, health, education and work."  He added that "the ministerial delegation is set to discuss these issues with the Palestinians and shed light on their civil rights that are to be preserved." When asked about some Palestinian statements saying that Ain al-Hilweh refugee camp will be excluded from the visit, Qabbani replied that "the government is setting an agenda for this first visit which will be followed by other visits aiming to put an end to the dire living conditions in the camps."He added: "The government definitely does not intend to make any exceptions since all the camps are misery-stricken and will deal with the matter in a completely new way." The Democratic Front for the Liberation of Palestine welcomed the visit though added that it was "late." The Front further hoped that the delegation visits Ain al-Hilweh refugee camp for it best shows the Palestinians' distress and called on the authorities not to consider this visit as a substitute for the Lebanese-Palestinian dialogue.

Fadlallah warns against non-Lebanese 'solutions'
Daily Star staff-Saturday, March 25, 2006
BEIRUT: Senior Shiite cleric Sayyed Mohammad Hussein Fadlallah advised the government not to wait for "some signal from foreign countries trying to reorganize Lebanon's domestic affairs in a way that serves the interests of the Zionist enemy and its U.S. ally."During Friday's sermon from the Imamein Hassanein Mosque in Haret Hreik, Fadlallah said Lebanon is still facing Israeli threats through regular land, water and air violations. "This is at a time when some of the country's leaders are discussing the arms of the resistance and Hizbullah's disarmament as demanded by Resolution 1559, which everyone knows is an Israeli-U.S. resolution imposed on the Security Council to serve the enemy's interests.""We hope the Lebanese fathom the importance of preserving national unity ... in the face of danger and we hope their dialogue succeeds for the sake of the country." Fadlallah said he also hoped the Lebanese would seek Lebanese-made solutions, highlighting that international pressure is exerted on the "little country" to implement UN resolutions. Fadlallah stressed building the country is a national responsibility that requires people "with clean plans and a clean history," criticizing "thieves who made a fortune out of running the country without having the judiciary questioning them about their wealth." - The Daily Star

Al-Manar shrugs off U.S. decision to freeze assets
By Rym Ghazal - Daily Star staff
Saturday, March 25, 2006
BEIRUT: Hizbullah's Al-Manar vowed Friday to continue broadcasting despite a U.S. decision to freeze its assets, shrugging off the move as "nothing new." "It doesn't change anything, and we will continue our work and will remain broadcasting everywhere in the world, including the U.S.," a spokesperson for Al-Manar told The Daily Star.
The U.S. Treasury announced Thursday that it froze the assets of Al-Manar satellite television, the mouthpiece of Lebanon's Hizbullah party, which the State Department lists as a terrorist organization.
"It is nothing new, the U.S. keeps sending us reminders of an old decision they made, which is to target us and not leaves us alone," said the spokesperson.
The Treasury also blocked any U.S. assets of Al-Nour Radio and Lebanese Media Group, which it said was the parent company of Al-Manar and Al-Nour. The Treasury said both media outlets had "facilitated" Hizbullah's activities, and "have supported fundraising and recruitment efforts by Hizbullah."
"Any entity maintained by a terrorist group - whether masquerading as a charity, a business, or a media outlet - is as culpable as the terrorist group itself," Stuart Levey, Treasury's undersecretary for terrorism and financial intelligence, said in the official statement, consequently banning U.S. nationals from any dealings with designated "terrorist" groups.
"In addition to supporting Hizbullah, Al-Manar has also provided support to other designated Palestinian terrorist organizations, including the Palestinian Islamic Jihad (PIJ) and Al-Aqsa Martyrs Brigade, notably transferring tens of thousands of dollars for a PIJ-controlled charity," it said.
Lebanese officials have called that designation unacceptable censorship and an attack on freedom of speech. "We consider this an assault on an objective and professional media group. It is politically motivated and we have information that the Zionist lobby in the U.S. is behind it," said Al-Manar General Manager Abdullah Qassir.
"Al-Manar is the victim of this but we will not react because we can overcome such decisions and broadcast to the world. The channel is now watched in America and Canada and all over the world," said Qassir, who also mentioned that Al-Manar doesn't have assets in the U.S. "Al-Manar is an honorable open station that abides by rules and regulations, and is far from encouraging terrorism or violence as it is constantly being accused of by the U.S.," he said.
The National Audiovisual Media Council also criticized the U.S. move as an "attack on Lebanese free media." "The stations targeted by the U.S. are Lebanese stations that are completely legal and work within the Lebanese laws and convey messages of Lebanese and Arab human rights in the struggle against the Israeli enemy," said Ghalib Qandil, a member of the Council. Qandil called on the Lebanese media to react and "stand in the face of U.S. pressure that violates the very foundations of freedom of the press." - With agencies

UN to vote next week on Hariri tribunal
By Jerome Mayer-Cantu -Special to The Daily Star
Saturday, March 25, 2006
BEIRUT: The UN's top lawyer announced Thursday that the UN Security Council would vote next Wednesday on the establishment of an international tribunal to try those suspected in the assassination of former Prime Minister Rafik Hariri. Nicolas Michel, the Under-Secretary of Legal Affairs, said that if the Security Council passes the vote, UN Secretary-General Kofi Annan will commence direct negotiations with Lebanese authorities on the formation of the tribunal. "Now it is for the Security Council to decide on the next step," Michel told reporters. If the vote goes through next week, it will be up to Annan and Lebanese authorities to discuss issues such as budget, jurisdiction, location and other basic details. In addition, it is not yet known if Syrian nationals will be brought to trial, or if suspects will be tried under Lebanese or international law.
Emerging from a closed-door meeting, Michel also affirmed that the tribunal would not take place in Lebanon due to an inability to assure the "security of the judges, of the witnesses, of the accused and the perceived impartiality of the tribunal." He repeated Annan's call for a court with an "international character," including international judges and following international law.
France circulated a draft yesterday suggesting that Annan negotiate directly with Lebanese interlocutors regarding the details of the tribunal. However, the draft did not offer any suggestions regarding the tribunal's formation. Michel added that in all probability the Hariri tribunal would resemble the Special Court for Sierra Leone, which has been widely held up as a model.
The Sierra Leone tribunal operates on annual budgets ranging between $20 million and $30 million, and has been praised for its effective outreach program and for conducting successful prosecutions where political tensions still run deep. Many hope that Lebanon's tribunal will recreate these successes Negotiations will have to proceed rapidly if the court is to be established by June, however, a goal stated by MPs Walid Jumblatt and Marwan Hamade earlier this month.

Tensions mount in political circles over Lahoud's fate
Dialogue success rests on egypt, saudi arabia talks
By Therese Sfeir - Daily Star staff
Saturday, March 25, 2006
BEIRUT: A few days before the resumption of the national dialogue in Parliament, politicians seemed to agree on the need to resolve the presidential crisis, but tension mounted in discussions about the president's successor. Well-placed sources said the success of the dialogue is "strongly linked to the outcome of the discussions taking place in Egypt and Saudi Arabia."
Another issue, the identity of Shebaa Farms, was also the center of political talks in the local arena, following the statements made by Syrian Vice President Farouk al-Sharaa in Egypt, where he reiterated his country's affirmation that the farms were Lebanese. Several Lebanese politicians said such a declaration was not enough and asked Syria to submit official documents to the UN. Meanwhile, March 14 politicians continued to call for the resignation of President Emile Lahoud and expressed their concerns about his participation in the Arab Summit.
The president of the Lebanese Forces executive committee, Samir Geagea, said President Emile Lahoud "should not remain in office and fulfill the interests of Syria," noting that the presidency crisis was "behind the participants in the national dialogue."
Geagea was speaking during a ceremony held Thursday by the LF student committee to honor his wife, Strida. He added that he was all for early parliamentary elections, "but after Lahoud is replaced and under a new president. There is no president now. We consider the post vacant."
U.S. Ambassador Jeffrey Feltman reiterated Friday his country's support for the national dialogue, stressing that the Lebanese "are able to resolve the issues discussed at the roundtable."
Feltman paid a visit Friday to the head of the Future parliamentary bloc, MP Saad Hariri.
The U.S. Ambassador said he hoped the participants would "agree on the remaining points on the dialogue's agenda."
Foreign Minister Fawzi Salloukh headed to Sudan on Friday to participate in the Arab Foreign Ministers' meeting, which will start Saturday. Addressing journalists at the airport, Salloukh said the "Lebanese issue is not on the agenda of the Arab Summit."He added that he would hold meetings with Syrian officials to discuss the issue of Shebaa Farms.
Meanwhile, sources close to Lahoud said that ministers from the March 14 forces rejected the president's participation in the Arab Summit because they wanted to "provoke a crisis and weaken Lebanon's role in the regional and international organizations." The sources added that such positions would "hamper the international trust in Lebanon and raise questions about the seriousness of the Lebanese government in abiding by its commitments."
In other developments, an open dialogue was held on Friday by the National Gathering for Reform and Development to discuss the memorandum of accord between Hizbullah and the Free Patriotic Movement (FPM). Speaking during the dialogue, FPM member Bassam Hashem said "those who refuse the election of Aoun as president want an employee that would meet their ambitions and cover up for corruption."
Former President Amin Gemayel said the statements of Syrian Vice President Farouk Sharaa about the Lebanese identity of Shebaa Farms "remain useless if Syria does not take adequate steps ... to officially acknowledge the Lebanese sovereignty over the farms."Gemayel met on Friday with the charge d'affaires of the Iranian Embassy, Hamid Rida Dahkani, with whom he discussed the means to promote bilateral relations.
- Additional reporting by Nafez Qawas

Source of March 14 Forces' optimism not in plain view
By Walid Choucair -Saturday, March 25, 2006
Daily Star
Despite frustration prevailing over the March 14 Forces every time a date is set to oust President Emile Lahoud, these same leaders optimistically reiterate they will achieve their goal soon, that Lahoud will not finish his term and ousting him is a matter of days not months - contrary to what some of Syria's allies are claiming. The March 14 leaders seem pretty sure of themselves when talking about progress in the discussions and about local and Arab efforts to settle the presidential crisis. But they don't reveal what makes them so optimistic. After all, giving the green light to Lahoud's removal is in Syria's power and therefore its allies will not act without its authorization and before it is given a deal for getting rid of Lahoud, whether from Arab countries or Lebanon. However, the March 14 forces are depending on an Arab move toward Damascus, especially from Egypt and Saudi Arabia. These two countries are expected to give guarantees to Syria that the new Lebanese president will not be an enemy to Damascus and will not allow any conspiracy to be launched from Lebanon against Syria.
The guarantees should be discussed in the national dialogue and be based on the Taif Accord.
However, the sources of the parliamentary and governmental majority believe that nothing clearly shows that the Arab initiative has reached a specific equation settling the presidential issue, though Arab countries are convinced about the necessity of it.
In all cases, some circles are talking about various scenarios to change the president.
In the third round of talks, members of the national dialogue discussed the presidential issue based on agreement on the necessity of Lahoud stepping down. They almost started discussing an alternative if it hadn't been for Speaker Nabih Berri, who interfered and recommended that the issue remain backstage to avoid disagreement. Consequently, he called for postponing the talks until Monday and until what he called new "Arab developments."
Some parliamentary circles of the majority called for examining what Hizbullah chief Sayyed Hassan Nasrallah said during Monday's speech, when he refrained from repeating talks about the fact that the government crisis does not only focus on changing the president, but also requires early parliamentary elections and therefore changing the entire government before the president.
These parliamentary circles noticed that Nasrallah stressed that the majority calling for Lahoud's ouster does not constitute Parliament's two-thirds constitutionally required, unless one of the three parliamentary blocs - i.e. MP Michel Aoun's bloc, Berri's bloc or Hizbullah's bloc - joins the majority bloc. In his speech, Nasrallah distinguished between the two Shiite blocs as if he implied that every one of them should have an independent stand in the presidential issue.
Nasrallah's opinion about the presidential issue during the third round of the dialogue was "moderate, open and realistic" as described by some MPs of the majority. Some MPs said although Nasrallah has powerful regional alliances, when he sees it important not to take the opinion and demands of these allies (Iran and Syria) he discards them for the sake of his country. This implied that Nasrallah might take a stand different from that of Syria in the presidential issue.

Khartoum Summit to issue resolution supporting Lebanon's national dialogue
By Zeina Abu Rizk -Special to The Daily Star
Saturday, March 25, 2006
The fate of the national dialogue depends to a great extent on that of the presidential question, which seems, at best, difficult to resolve, but about which the March 14 Forces are determined to ask for a final decision before the end of April. In the meantime, Arab assistance seems necessary to solve this controversial question and to help implement the package of decisions reached so far by the participants in the dialogue. The first Arab move in this direction is expected to come from the Khartoum Arab summit scheduled to start next Tuesday. According to an eminent political figure participating in the national dialogue, the Khartoum resolutions will include one supporting the Lebanese national talks.
Although Lebanon is not on the summit's agenda, talks about the Lebanese ongoing events and the Lebanese-Syrian relations will be at the center of side-talks among participating Arab delegations. The source said that while decisions reached in Parliament were taken by Lebanese parties, most, if not all, have Syrian ramifications and therefore need an Arab "boost" to make them achievable.
The source mentioned in particular the establishment of diplomatic relations between Beirut and Damascus, an idea which Syria has never been enthusiastic about, along with the demarcation of the Lebanese-Syrian border. The decision to collect Palestinian arms from outside the Palestinian camps within a six-month period and to address the issue of the Palestinian arms inside these camps afterward is another issue that directly concerns Damascus and one which has been playing as a security card for years. This participant in the national dialogue admitted having advised Prime Minister Fouad Siniora not to participate in the Khartoum Summit. The obvious reason is to avoid the presence of President Emile Lahoud. But the source argued there was no need for the premier to attend the summit in the first place, as he would have already discussed by Tuesday all important items regarding Lebanon with the two main Arab leaders: Hosni Mubarak whom he met on Thursday in Sharm al-Sheikh and Saudi King Abdullah Bin Abdel-Aziz with whom he is scheduled to meet on Sunday.
Commenting on the presidential question and the way to handle it, a political source close to the Hariri circles said what is required at this stage is a Lebanese president who will embody the Taif Accord, instead of being a president for Syria as has been the case since the endorsement of Taif - a reference to pro-Syrian presidents Elias Hrawi and Lahoud. What Lebanon needs today is a new Rene Mouawad - who was the first president to be elected after Taif and was killed soon afterward, the source remarked. In other words, the new president will have to enjoy, in addition to the support of the majority of the Lebanese, the backing of main Arab countries. These countries are expected to work on convincing Damascus of the need to give up its support to Lahoud. One way of doing this is to propose a presidential candidate who would not be perceived as a threat to Syria's political interests and would not therefore be vetoed by Syria.
But this scenario will need about three months, said the source, who expected a clear position concerning Lahoud's fate within three weeks or so.The national dialogue cannot be postponed indefinitely and this crucial matter should not stay pending forever, said the senior politician. But these provisions contradict a belief prevailing in Shiite circles that the presidency issue is far from settled and the ongoing debate on it is unlikely to end anytime soon, at least not before reaching an understanding over the president's successor.

Bankers warn against raising tax on interest
Move can damage economy as depositors take funds elsewhere
By Osama Habib -Daily Star staff
Saturday, March 25, 2006
BEIRUT: Raising taxes on interest rates on bank deposits may force the migration of funds and capitals from Lebanon, leading bankers warned on Friday. "This is a very dangerous proposal by the government. Banks are the main pillar of the local economy and this step would certainly cause serious damage to the sector," Adnan Kassar, chairman of Fransabank told The Daily Star. According to a draft proposal, which is yet to be discussed and approved by the Cabinet and the Parliament, taxes on interest rates on bank deposits should rise from 5 percent to 8 percent. The government of Premier Fouad Siniora, under pressure from the donor states to submit an effective economic plan as a prelude for financial assistance, will face an uphill struggle to sell his bold program not only to the Cabinet members but to the disillusioned private sector.
Banks deposits, which currently stand at $62 billion, stand at three times the size of Lebanon's GDP.
Lebanese banks succeeded to lure large funds from Lebanese and Arab investors over the past 10 years thanks to the high return on dollar and Lebanese pound deposits, free transfer of funds and a cherished banking secrecy law.
"We warned Siniora when he was a finance minister not to slap a 5 percent tax on bank deposits but unfortunately he did not heed our advice," Kassar said. Every time the government needed money to increase state revenues they resort to the easiest way: "Raising taxes," he said.
"We keep telling them that raising taxes without serious reforms will not solve the public debt problem. The government must first cut waste in public departments and combat corruption," Kassar said. Kassar and other bankers said that Lebanon is loosing its competitive edge because the interest rates offered by local banks are no longer appealing because many countries in the region such as Cyprus are offering similar rates.
They added that the LIBOR, London Inter-bank Offered Rate, has risen from one percent to nearly 5 percent which means that Lebanese banks' margin to increase interest rates on bank deposits is becoming very costly.
One banker said that depositors may start putting their money in Cyprus. "Why should they pay 8 percent interest on bank deposits while in Cyprus they don't have to pay any tax?"
Shadi Karam, chairman of BLC Bank, said the proposal to raise the tax is a major mistake by the government. "The entire economy is one-third of the banking sector. Banks are the driving engine behind the limited growth and job opportunities in the country." He added that if the government proceeded with the tax proposal then "they are trying to kill the goose that lays the golden egg."
"If this erroneous decision was adopted to implement real reforms then I will reluctantly accept it. However, if this step will lead to more corruption and waste then I don't think it is the right decision."
He added that the tax will also be applied to non-Lebanese residents and this is quite dangerous.
It is widely believed that non-Lebanese hold as much as 20 percent of total bank deposits in Lebanon.
Other bankers also said that if funds left the country then the banks will not be able to finance the $38 billion public debt in medium and long terms.
Local banks hold most of the government's treasury bills and Eurobonds, increasing their risk exposure.
"Nonresidents in Switzerland do not pay any taxes on interest on deposits. But it seems that the Lebanese government wants to break the rule," one banker said.

Bag of sand prompts bomb rumors
By Hadi Tawil -Special to The Daily Star
Saturday, March 25, 2006
BEIRUT: A false bomb alert struck again on Friday as rumors of an explosive device circulated in Beirut.
Rumors of a false bomb were spread by media reports claiming that a pack of dynamite was found near a side street in an area where Future bloc MP Farid Makari lives. But a security source told The Daily Star: "No explosives were found next to Makari's house but rather a bag of national white sand."The source said: "A man saw the bag containing the white sand and immediately called the police, which then contacted chief UN investigator Serge Brammertz' team to inspect the scene. They found out it was merely a false alert."
The source confirmed that the information was false after contacting police chief General Ashraf Rifi.