Lebanese PM appeals to Arab states to boost aid for reconstruction

Arab finance ministers approved on Tuesday a series of recommendations and measures to support the Lebanese economy and called for strong Arab participation in next year's international donors conference on rebuilding the war-battered country.

Among the recommendations was a call on Arab governemnts to waive tarrifs on Lebanese trucks carrying agricultural and industrial products and faciliating their entry to Arab countries for the next three years.

The ministers also recommended that an advertising campaign be launched to encourage Arabs to spend their holidays in Lebanon.

Lebanon's tourist industry suffered a devastating blow as a result of the month-long war between Israel and Hezbollah guerrillas which ended with a UN-brokered cease-fire on Aug. 14.

The ministers also recommended that Arab governments offer technical assistance to Lebanon's industrial and agricultural sectors and encourage Arab investment in Lebanon as well as a series of measures to assist in the rebuilding of power plants, hospitals and schools.

The recommendations were issued at the end of the one-day meeting during which Lebanese Prime Minister Fuad Siniora appealed to Arab countries to increase and accelerate donations to Lebanon.

Siniora called for a quick infusion of Arab funds to enable Lebanon to recover from the latest Israeli offensive and the civil war of 1975-90.

Siniora said the fighting between Israel and Hezbollah guerrillas had inflicted a heavy loss of life and colossal damage to Lebanon's infrastructure.

"The Lebanese have paid a heavy price in lives and properties as a result of this devastating war. Also, nearly a quarter of Lebanon's population was displaced from their homes during the (Israeli) aggressoin. Direct and indirect economic losses reached billions of dollars," Siniora told the Arab League's Economic and Social Council.

Lebanon says it needs about US$3.5 billion to repair buildings and infrastructure damaged in the Israeli offensive. But even before this year's destruction, Lebanon was saddled with a public debt of about $38 billion - most of which stemmed from the costs of reconstruction from the civil war.

Tuesday's meeting came a day after France agreed to hold an international donor conference for Lebanese reconstruction in January.

At a similar conference in Stockholm, Sweden, last month, donors pledged nearly US$1 billion to rebuild Lebanon.

Saudi Arabia's King Abdullah has promised US$1.5 billion to Lebanon - US$500 million for reconstruction and US$1 billion to be deposited in Lebanon's central bank to support the economy. Kuwait has pledged US$300 million.

Siniora thanked Arab states for their donations, but said: "We want our (Arab) brothers to give renewed and concrete support - to cover all needs of the public and private sectors and to overcome an ordeal that has been going on for three decades."

Arab League Secretary-General Amr Moussa said Tuesday's meeting was the starting point for Lebanon's reconstruction.

"Lebanon's stability and safety are an indivisible part of security and stability in the Arab world and the Middle East," Moussa told the conference's opening session.