Lebanese PM says funds from aid conference to be granted early 2003

BEIRUT, Nov 25 (AFP) - Lebanese Prime Minister Rafiq Hariri said in remarks published Monday that funds earmarked for Lebanon by an international aid conference to tackle its public debt crisis would be granted from early 2003. At the Paris II conference hosted by French President Jacques Chirac last week Lebanon secured a total of 4.4 billion dollars, Hariri told the As-Safir Arabic-language newspaper.

The funds are divided as follows: 3.12 billion dollars in guarantees on loans at preferential rates of between 3.5 and six percent and purchase of Lebanese treasury bonds, and 1.3 billion dollars in soft loans to finance infrastructure projects in poorer regions, the prime minister said.

The loans, to be paid back over "five to 10 years, will allow (us) to reduce the debt servicing burden and as a result the budget deficit," Hariri said.

Hariri added that funds from the European Investment Bank (EIB) would be used to finance small to medium size private sector projects, while those of the Kuwait Investment Bank and the Arab Development Fund would be used for educational, health and development projects, notably in rural areas.

He also said Lebanon would press ahead with a planned privatization of public services with the aim of securing an additional five billion dollars. The funds will help to service the public debt, expected to reach 31 billion dolllars by the end of the year.

Hariri explained there were "no divergences between Lebanon and the International Monetary Fund (IMF)" and that the IMF will "monitor the implemention of reforms that Lebanon has promised."

The Beirut government has sought to avert structural reform proposals from the IMF and wants to cut the more than three billion dollars a year it spends to service its debt -- a cost that has undermined efforts to slash government spending.

IMF and other financial experts have cast doubt over Lebanon's ability to manage its deficit without devaluing the Lebanese pound or making drastic cuts in civil service jobs. Hariri met later Monday in Damascus with Syrian President Bashar al-Assad to discuss "the steps necessary to benefit from the success of the (Paris II) conference," the prime minsiter's office said.

Hariri also met with the Syrian leader on November 16, ahead of a key visit to Washington to prepare for the Paris meeting. Economy Minister Bassel Fleyhan, meanwhile, gave As-Safir a list of the various credits secured in Paris, as follows:

Saudi Arabia 700 million dollars, France 500 million, Kuwait and the United Arab Emirates 300 million each, Bahrain, Canada, Italy and Qatar 200 million each, European Union 100 million, Belgium 70 million, Oman 50 million, Malaysia, unspecified, but 300 million dollars according to Hariri's figures.

Arab Economic and Social Development Fund 500 million dollars, European Investment Bank 350 million, World Bank 200 million, Kuwait Investment Bank 150 million, Arab Monetary Fund 100 million.

Lebanese give mixed grade to Paris donors conference

BEIRUT, Nov 24 (AFP) - Lebanese politicians gave mixed reviews while local press gave the thumbs up Sunday to the outcome of an international donors conference that granted Beirut four billion dollars in credits to help it tackle its public debt crisis.

Ex-prime minister Salim Hoss described the results of the two-day Paris donors conference which ended Sunday as "relatively good," despite his being a rival of the current premier Rafiq Hariri who defeated him in 2000 elections. However, Hoss expressed doubt on whether Hariri could make good on all his financial reform pledges.

For his part, Lebanese Finance Minister George Corm said the amounts pledged at the Paris II confernce might actually be less than what they appeared to be. "There exist a number of questions on the sum allocated. The sums lack transparency, and neither the conditions, the period and the process of utilising credits is clear, neither in the final statement of Paris II or in the table distributed to journalists," he said in a television interview.

Most newspapers said the success of the Paris II conference, hosted by French President Jacques Chirac, meant Lebanon now had to focus on pushing through promised financial reforms and privatization plans to revive its ailing economy.

The mass-circulation An-Nahar daily said Beirut had gained international support "for its financial reform plans, in return for a serious commitment from Lebanon to implement reforms under the supervision of the International Monetary Fund (IMF)."

The Al-Kifah Al-Arabi paper said the government now had to focus on its promised financial reforms in order to obtain further credits, since it did not obtain the five billion dollars it was counting on.

Saudi Arabia was the main donor, promising 700 million dollars, while France, the European Investment Bank, the Kuwait Investment Bank, and the Arab Development Fund all pledged 500 million dollars each. However the United States, Britain, Germany and Spain offered nothing for the moment, with France saying they were waiting to see how Lebanon performs and whether it increases cooperation with the IMF.

The Beirut government has sought to avert structural reform proposals from the IMF. For its part the Al-Mostaqbal daily, owned by Prime Minister Rafiq Hariri, said that Paris II delivered a "message of confidence in Lebanon".

Only the Ad-Diyar newspaper, staunchly opposed to Hariri's policies, was critical of the meeting, saying it was aimed to "cover up the bad (government) performance which had led the country to accumulate an important debt" of more than 30 billion dollars.

Dollars to stave off Lebanon debt crisis

PARIS, Nov 23 (AFP) - Lebanon on Saturday obtained more than four billion dollars in credits to help shoulder its crippling debt and head off a financial crisis. French President Jacques Chirac, emerging after a key donors' conference held here, said that more than four billion dollars had been earmarked to rescue Lebanon, still reeling from a devastating civil war in the 1970s and 1980s.

"Financial engagements and programmes will come to between 4.2 and 4.3 billion dollars," Chirac, who hosted the conference, said. Saudi Arabia was the main donor, promising 700 million dollars. However several participants, including Washington, stepped back from any immediate commitment, saying they wanted to see progress first.

Lebanese Prime Minister Rafiq Hariri, who was also present, said some three billion of this would go directly into Lebanese state coffers, and that 1.3 billion involved proposals from the World Bank and other financial institutions.

The Beirut government, which has sought to avert structural reform proposals from the International Monetary Fund (IMF), had hoped to raise three to five billion dollars -- equal to what the government hopes to gain from a planned privatization of public services -- through a combination of grants and soft loans.

Saudi Arabia was followed by France, the European Investment Bank, the Kuwait Investment Bank, and the Arab Development Fund all of which pledged 500 million dollars each, a source said. Kuwait, the United Arab Emirates, and Malaysia all offered 300 million dollars, and Italy, Canada and Bahrain 200 million.

Japan and the Arab Monetary Fund agreed to 100 million dollars each, Belgium 70 million dollars, and Oman 50 million dollars. Apart from the United States, Britain, Germany and Spain also offered nothing for the moment. The United States had last week urged Lebanon to strike a deal with the IMF.

"Several participants showed willingness to contribute to Lebanon's financing at a later date, in the light of progress made and the deepening of its relations with the IMF," the French statement said.

The meeting, dubbed "Paris II" after a similar conference which took place in 2001, brought together leaders from 17 states and major international financial institutions from Europe, North America, southeast Asia and the Gulf.

Lebanon, which was described as the Switzerland of the Middle East before its 1975-1990 civil war, wants to cut the more than three billion dollars a year it spends to service its debt -- a cost that has undermined efforts to slash government spending.

Hariri told the conference that Lebanon's public debt would hit "about 31 billion dollars (euros) at the end of the year" and servicing it had become "unbearable". Without the relief funds, Beirut has said it would be forced to default on debt payments in 2003.

Chirac said the aid would contribute to stability in the volatile Middle East region. He called for a follow-up conference in six to nine months. "If there is to be a war (in Iraq), the efforts would be in vain everywhere... We must act with the hope that we will manage to impose peace, stability and development," Chirac said.

For his part, President Emile Lahoud thanked Chirac for organizing the conference, and pledged that his government would take the necessary steps to encourage other countries to extend support.

Beirut would "accomplish what is necessary in the financial and administrative domain," a statement from the presidential office quoted Lahoud as telling the French president in a telephone call. IMF and other financial experts have cast doubt over Lebanon's ability to manage its deficit without devaluing the Lebanese pound or making drastic cuts in civil service jobs.

Ninth European film festival opens in Beirut

BEIRUT, Nov 22 (AFP) - The ninth European film festival kicked off Friday in Beirut with a heart warming French production depicting in documentary style the joys and trials of teaching in a rural area in central France. Nicolas Philibert's movie "Etre et Avoir" is among 23 films from 12 countries that will be shown in Beirut and in the southern port city of Sidon, organisers said.

The movie, set in the central French region of Auvergne, tells the story of  a school instructor close to retirement age who teaches elementary and primary children from a rural background. Many of the movies being shown have been produced by young award-winning filmakers who have participated in the Cannes, Venice or Berlin festivals and many of the films will not be distributed commercially.

The festival, which will go on until November 28, has received a warm welcome from Lebanese moviegoers who are accustomed mostly to US box office hits as well as some French productions. The president of the German-French television channel Arte, Jerome Clement, who co-produced "Etre et Avoir" said Friday in Beirut it was necessary to encourage "cultural diversity" and to promote creative and educational works.

During the festival the European Union will also distribute an award to the best of 18 short films produced by six Lebanese schools.

Lebanon celebrates 59th independence day

BEIRUT, Nov 22 (AFP) - Lebanon celebrated Friday the 59th anniversary of  its independence from French rule with a military parade through the center of its capital. President Emile Lahoud took part in the procession, standing and greeting crowds from a military jeep, as did parliament speaker Nabih Berri. Prime Minister Rafiq Hariri was absent from the celebrations, as he is in Paris preparing for an international donors conference that kicks off Saturday aimed at boosting Lebanon's ailing economy.

Many other Lebanese political figures, as well as Syrian military leaders and diplomats participated in the celebration. Lahoud praised his country's strong ties with Syria in a speech broadcast late Thursday night, calling the alliance "the cornerstone of stability in Lebanon."

Lebanon was under a French mandate from 1920 until it gained its independence on November 22, 1943. Syria dominates Lebanon politically and has maintained thousands of troops in its smaller neighbour since 1976, a year after the outbreak of Lebanon's 15-year civil war.

Police forces on Thursday prevented some 50 Lebanese students opposed to Syria's presence in Lebanon from holding a rally to protest against the independence day festivities.

Lebanese magistrate presses ahead with probe into killing of American

BEIRUT, Nov 22 (AFP) - Lebanese authorities pressed ahead Friday with a probe into the murder of US Christian missionary Bonnie Penner, who was shot dead the previous day in the coastal city of Sidon, legal sources said. Investigating magistrate Nadim Abdel Malak has heard testimony from several witnesses, including the woman's husband Gary Witheral, who would be the lead plaintiff in a murder case, the sources said.

Penner, 31, was killed, apparently the victim of anger over US Middle East policies. A nurse at a Christian mission, she had worked in Sidon for two years, according to the US embassy here. She was the first US citizen murdered in Lebanon since the end of the country's 1975-1990 civil war.

"The crime does not seem to have any personal motive. It was an act apparently committed by a person motivated by anti-American sentiments," a police official told AFP, asking not to be named. No group issued a claim of responsibility for the killing.

Initial reports said the murderer was an armed man who knocked at the door of the clinic located in the Sidon branch of the Alliance Church. She was hit once in the face and twice in the chest, according to an AFP correspondent who saw the body before it was transferred to the morgue of a hospital in Sidon.

The British husband has said he forgives her killers, The Times of London reported Friday. "I forgive anyone who did that. It doesn't take the pain. It's a costly forgiveness... it cost my wife," he told the newspaper. Asked if his wife would have also forgiven her killers, Witheral said: "Absolutely, absolutely."

He added: "We don't care about the politics. We just wanted to put our arms around people and say 'Hey, you know what? There's hope'. The people of  southern Lebanon are poor and suffering."

American missionary nurse shot dead in south Lebanon

by Mountasser Abdallah

SIDON, Lebanon, Nov 21 (AFP) - An American nurse at a Christian mission was shot dead Thursday in the southern Lebanese port city of Sidon, apparently the victim of anger over US Middle East policies, police said.

"The body of an American woman, a nurse in the clinic of an Evangelical mission, was found in the building of that mission in a southern district of  Sidon. She had been shot dead," a police official said. The US embassy here named the victim as Bonnie Penner, 31, saying she had worked in Sidon for two years. It said she was married to a Briton, Garry Whitherall.

It said it and the British embassy were coordinating the investigation of the murder, the first of a US citizen in Lebanon since the end of the country's 1975-1990 civil war.

An official at the embassy said earlier that embassy security officers had been dispatched to Sidon to follow up on the crime. A police source said the murder did not appear to have a "personal motive," but probably stemmed instead from anti-Americanism. "This was apparently an act committed by a person filled with anti-American feelings in the generally hostile climate toward the United States, which people here reproach for its desire to carry out a war against Iraq and for supporting Israel," said the official, on condition of anonymity.

No group issued a claim of responsibility for the killing. Sidon, the hometown of Prime Minister Rafiq Hariri, is located 40 kilometres (25 miles) south of Beirut. It is a predominantly Sunni Muslim community, whose residents are known for their strong Arab nationalist sentiment.

Investigating magistrate Nadim Abdel Malek told journalists at the scene that the motives of the killing were being investigated. Initial reports said the murderer was an armed man who had knocked at the door of the clinic located in the Sidon branch of the Alliance Church.

"The victim apparently opened the door to her killer, who immediately fired three shots into her body, because there is no sign of (any other) violence," a detective told AFP. She was hit once in the face and twice in the chest, according to an AFP correspondent who saw the body before it was transferred to the morgue of a hospital in Sidon.

US and British embassy and security officials visted the scene of the crime, said the head of Penner-Witherall's church. "They visited the centre, interrogated the personnel and spoke to the police and judicial authorities," said the Alliance Church's Pastor Sami Dagher. Dagher called the killing a "horrible crime" and said there had been no threats beforehand.

He added one American and one British member of his staff had left Sidon after the slaying. The victim and her husband lived in an apartment in Sidon. She worked in the gynaecological department of the clinic, where she was currently helping with a caseload of 85 impoverished women, a source there said.

Her murder is the latest in a string of recent anti-American attacks. The US embassy in Lebanon called on US nationals to watch out for their safety after Thursday's murder, while Hariri strongly denounced the attack as a "horrible crime that nothing can justify."

He said in a statement the killing aimed to hit "the government's efforts to consolidate the stability and confidence in the country." On November 12, virtually simultaneous explosions hit Pizza Hut and Winners restaurants around Jounieh near Beirut, as well as a Pizza Hut franchise in the northern port of Tripoli.

The blasts caused extensive damage to the restaurants and neighboring shops but no casualties. In May, a security guard was slightly hurt in a blast at a KFC restaurant in Tripoli. Officials said on Tuesday that police were seeking five suspects in last week's bombings, all residents of Palestinian refugee camps in Lebanon.

No one has claimed responsibility for those attacks. They come amid a widely observed boycott of US fast-food outlets in Lebanon called by left-wing and Islamic groups to protest Washington's policies in the Middle East, but the committee behind the boycott has condemned the bombings.

On Wednesday, the State Department issued a new "Worldwide Caution" to US citizens, saying they "may be targeted for kidnapping or assassination" and warning them to remain vigilant and to exercise caution.

The US embassies in Lebanon and Syria also issued security reminders after the November 12 fast-food restaurant bombings. On November 4, the State Department renewed an alert for terrorist attacks in the Middle East, the Gulf and North Africa, a week after a US diplomat was shot to death as he left home for work in the Jordanian capital, Amman.