Lebanon Department of State Background

U.S. Department of State Background Note

Lebanon

PEOPLE

Lebanon is the historic home of the Phoenicians, Semitic traders whose maritime culture flourished there for more than 2,000 years (c.2700-450 B.C.). In later centuries, Lebanon's mountains were a refuge for Christians, and Crusaders established several strongholds there. Following the collapse of the Ottoman Empire after World War I, the League of Nations mandated the five provinces that comprise present-day Lebanon to France. Modern Lebanon's constitution, drawn up in 1926, specified a balance of political power among the various religious groups. The country gained independence in 1943, and French troops withdrew in 1946. Lebanon participated in the 1948 Arab-Israeli War and signed an armistice with Israel on March 23, 1949.

Lebanon's history since independence has been marked by periods of political turmoil interspersed with prosperity built on Beirut's position as a regional center for finance and trade. In 1958, during the last months of President Camille Chamoun's term, an insurrection broke out, and U.S. forces were briefly dispatched to Lebanon in response to an appeal by the government. During the 1960s, Lebanon enjoyed a period of relative calm and Beirut-focused tourism and banking sector-driven prosperity. Other areas of the country, however, notably the South, North, and Bekaa Valley, remained poor in comparison.

In the early 1970's, difficulties arose over the presence of Palestinian refugees, many of whom arrived after the 1967 Arab-Israeli war, the secret 1969 Cairo Agreement permitting the establishment of Palestinian camps in Lebanon, and 1970 "Black September" hostilities in Jordan. Among the 1970 arrivals were Yasser Arafat and the Palestinian Liberation Organization (PLO). Coupled with the Palestinian problem, Muslim and Christian differences grew more intense.

Beginning of the Civil War--1975-81
Full-scale civil war broke out in April 1975. After shots were fired at a church, gunmen in Christian East Beirut ambushed a busload of Palestinians. Palestinian forces joined predominantly leftist-Muslim factions as the fighting persisted, eventually spreading to most parts of the country and precipitating the Lebanese President's call for support from Syrian troops in June 1976. In fall of 1976, Arab summits in Riyadh and Cairo set out a plan to end the war. The resulting Arab Deterrent Force, which included Syrian troops already present, moved in to help separate the combatants. As an uneasy quiet settled over Beirut, security conditions in the south began to deteriorate.

After a PLO attack on a bus in northern Israel and Israeli retaliation that caused heavy casualties, Israel invaded Lebanon in March 1978, occupying most of the area south of the Litani River. In response, the UN Security Council passed Resolution 425 calling for the immediate withdrawal of Israeli forces and creating the UN Interim Force in Lebanon (UNIFIL), charged with maintaining peace. Israeli forces withdrew later in 1978, turning over positions inside Lebanon along the border to their Lebanese ally, the South Lebanon Army (SLA) under the leadership of Maj. Sa'ad Haddad, thus informally setting up a 12-mile wide "security zone" to protect Israeli territory from cross border attack.

U.S. Intervention--1982-84
An interim cease-fire brokered by the U.S. in 1981 among Syria, the PLO, and Israel was respected for almost a year. Several incidents, including PLO rocket attacks on northern Israel, as well as an assassination attempt on the Israeli Ambassador to the United Kingdom, led to the June 6, 1982 Israeli ground attack into Lebanon to remove PLO forces. Operation "Peace for Galilee" aimed at establishing a deeper security zone and pushing Syrian troops out of Lebanon, with a view toward paving the way for an Israeli-Lebanese peace agreement. With these aims in mind, Israeli forces drove 25 miles into Lebanon, moving into East Beirut with the support of Maronite Christian leaders and militia.

In August 1982, U.S. mediation resulted in the evacuation of Syrian troops and PLO fighters from Beirut. The agreement also provided for the deployment of a multinational force composed of U.S. Marines along with French and Italian units. A new President, Bashir Gemayel, was elected with acknowledged Israeli backing. On September 14, however, he was assassinated. The next day, Israeli troops crossed into West Beirut to secure Muslim militia strongholds and stood aside as Lebanese Christian militias massacred almost 800 Palestinian civilians in the Sabra and Shatila refugee camps. Israel's then-Minister of Defense Ariel Sharon was held indirectly responsible for the massacre by the Kahane Commission and later resigned. With U.S. backing, Amin Gemayel, chosen by the Lebanese parliament to succeed his brother as President, focused anew on securing the withdrawal of Israeli and Syrian forces. The multinational force returned.

On May 17, 1983, Lebanon, Israel, and the United States signed an agreement on Israeli withdrawal that was conditioned on the departure of Syrian troops. Syria opposed the agreement and declined to discuss the withdrawal of its troops, effectively stalemating further progress. In August 1983, Israel withdrew from the Shuf (southeast of Beirut), thus removing the buffer between the Druze and the Christian militias and triggering another round of brutal fighting. By September, the Druze had gained control over most of the Shuf, and Israeli forces had pulled out from all but the southern security zone, where they remained until May 2000. The virtual collapse of the Lebanese Army in February 1984, following the defection of many Muslim and Druze units to militias, was a major blow to the government. With the U.S. Marines looking ready to withdraw, Syria and Muslim groups stepped up pressure on Gemayal. On March 5, 1984 the Lebanese Government canceled the May 17 agreement; the Marines departed a few weeks later.

This period of chaos witnessed the beginning of terrorist attacks launched against U.S. and Western interests. These included the April 18, 1983 suicide attack at the U.S. Embassy in West Beirut (63 dead), the bombing of the headquarters of U.S. and French forces on October 23, 1983 (298 dead), the assassination of American University of Beirut President Malcolm Kerr on January 18, 1984, and the bombing of the U.S. Embassy annex in East Beirut on September 20, 1984 (9 dead).

It also saw the rise of radicalism among a small number of Lebanese Muslim factions who believed that the successive Israeli and U.S. interventions in Lebanon were serving primarily Christian interests. It was from these factions that Hezbollah emerged from a loose coalition of Shi'a groups. Hezbollah employed terrorist tactics and was supported by Syria and Iran.

Worsening Conflict and Political Crisis--1985-89
Between 1985 and 1989, factional conflict worsened as various efforts at national reconciliation failed. Heavy fighting took place in the "War of the Camps" in 1985 and 1986 as the Shi'a Muslim Amal militia sought to rout the Palestinians from Lebanese strongholds. The Amal movement had been organized in mid-1975, at the beginning of the civil war, to confront what were seen as Israeli plans to displace the Lebanese population with Palestinians. (Its charismatic founder Imam Musa Sadr disappeared in Libya three years later. Its current leader, Nabih Berri, is the Speaker of the National Assembly.) The combat returned to Beirut in 1987, with Palestinians, leftists, and Druze fighters allied against Amal, eventually drawing further Syrian intervention. Violent confrontation flared up again in Beirut in 1988 between Amal and Hezbollah.

Meanwhile, on the political front, Prime Minister Rashid Karami, head of a government of national unity set up after the failed peace efforts of 1984, was assassinated on June 1, 1987. President Gemayel's term of office expired in September 1988. Before stepping down, he appointed another Maronite Christian, Lebanese Armed Forces Commanding General Michel Aoun, as acting Prime Minister, contravening Lebanon's unwritten "National Pact," which required the prime minister to be Sunni Muslim. Muslim groups rejected the move and pledged support to Salim al-Hoss, a Sunni who had succeeded Karami. Lebanon was thus divided between a Christian government in East Beirut and a Muslim government in West Beirut, with no president.

In February 1989 Aoun attacked the rival Lebanese Forces militia. By March he turned his attention to other militias, launching what he termed a "War of Liberation" against the Syrians and their Lebanese militia allies. In the months that followed, Aoun rejected both the agreement that ultimately ended the civil war and the election of another Christian leader as president. A Lebanese-Syrian military operation in October 1990 forced him to take refuge in the French Embassy in Beirut and later to go into a 15-year exile in Paris. After Syrian troop withdrawal, Aoun returned to Lebanon on May 7, 2005 and won a seat in the 2005 parliamentary elections. His Free Patriotic Movement became a principal element of the pro-Syrian opposition bloc.

End of the Civil War--1989-91
The Ta'if Agreement of 1989 marked the beginning of the end of the war. In January of that year, a committee appointed by the Arab League, chaired by Kuwait and including Saudi Arabia, Algeria, and Morocco, had begun to formulate solutions to the conflict, leading to a meeting of Lebanese parliamentarians in Ta'if, Saudi Arabia, where they agreed to the national reconciliation accord in October. Returning to Lebanon, they ratified the agreement on November 4 and elected Rene Moawad as President the following day. Moawad was assassinated in a car bombing in Beirut on November 22 as his motorcade returned from Lebanese Independence Day ceremonies. Elias Hrawi, who remained in office until 1998, succeeded him.

In August 1990, parliament and the new President agreed on constitutional amendments embodying some of the political reforms envisioned at Ta'if. The National Assembly expanded to 128 seats and was divided equally between Christians and Muslims (with Druze counted as Muslims). In March 1991, parliament passed an amnesty law that pardoned all political crimes prior to its enactment. The amnesty was not extended to crimes perpetrated against foreign diplomats or certain crimes referred by the cabinet to the Higher Judicial Council. In May 1991, the militias (with the important exception of Hezbollah and Palestinian militias) were dissolved, and the Lebanese Armed Forces began to slowly rebuild itself as Lebanon's only major nonsectarian institution.

In all, it is estimated that more than 100,000 were killed, and another 100,000 left handicapped, during Lebanon's 16-year civil war. Up to one-fifth of the pre-war resident population, or about 900,000 people, were displaced from their homes, of which perhaps a quarter of a million emigrated permanently. The last of the Western hostages taken during the mid-1980s were released in May 1992.

Postwar Reconstruction--1992 to 2005
Postwar social and political instability, fueled by economic uncertainty and the collapse of the Lebanese currency, led to the resignation of Prime Minister Omar Karami in May 1992, after less than 2 years in office. Former Prime Minister Rashid al Sulh, who was widely viewed as a caretaker to oversee Lebanon's first parliamentary elections in 20 years, replaced him.

By early November 1992, a new parliament had been elected, and Prime Minister Rafiq Hariri had formed a cabinet, retaining for himself the finance portfolio. The formation of a government headed by a successful billionaire businessman was widely seen as a sign that Lebanon would make a priority of rebuilding the country and reviving the economy. Solidere, a private real estate company set up to rebuild downtown Beirut, was a symbol of Hariri's strategy to link economic recovery to private sector investment. After the election of then-commander of the Lebanese Armed Forces Emile Lahoud in 1998, following Hrawi's extended term as President, Salim al-Hoss again served as Prime Minister. Hariri returned to office as Prime Minister in November 2000. Although problems with basic infrastructure and government services persist, and Lebanon is now highly indebted, much of the civil war damage was repaired throughout the country, and many foreign investors and tourists returned.

In early April 1996, Israel conducted a military operation dubbed "Grapes of Wrath" in response to Hezbollah's continued launching of rockets at villages in northern Israel. The 16-day operation caused hundreds of thousands of civilians in south Lebanon to flee their homes. On April 18, Hezbollah fired mortars at an Israeli military unit from a position near the UN compound at Qana, and the Israeli Army responded with artillery fire. Several Israeli shells struck the compound, killing 102 civilians sheltered there. In the "April Understanding" concluded on April 26, Israel and Hezbollah committed themselves to avoid targeting civilians and using populated areas to launch attacks. The Israel-Lebanon Monitoring Group (ILMG), co-chaired by France and the United States, with Syria, Lebanon, and Israel all represented, was set up to implement the Understanding and assess reports of violations. ILMG ceased operations following the May 2000 Israeli withdrawal from south Lebanon.

On May 23, 2000, the Israeli military carried out a total withdrawal of Israeli troops from the south and the Bekaa Valley, effectively ending 22 years of occupation. The SLA collapsed and about 6,000 SLA members and their families fled the country, although more than 3,000 had returned by November 2003. The military court tried all of the SLA operatives who remained in the country and the average sentence handed down was 1-year imprisonment.

On June 16, 2000, the UN Security Council adopted the report of the Secretary General verifying Israeli compliance with UN Security Council Resolution 425 (1978) and the withdrawal of Israeli troops to their side of the demarcated Lebanese-Israeli line of separation (the "Blue Line") mapped out by UN cartographers. (The international border between Lebanon and Israel is still to be determined in the framework of a peace agreement.) In August 2000, the Government of Lebanon deployed over 1,000 police and soldiers to the former security zone, but Hezbollah also maintained observation posts and conducted patrols along the Blue Line. While Lebanon and Syria initially agreed to respect the Blue Line, both since have registered objections and continue to argue that Israel has not fully withdrawn from Lebanese soil. As regional tension escalated with the Palestinian intifada in September 2000, Hezbollah cited Blue Line discrepancies when it reengaged Israel on October 7, taking three Israeli soldiers captive in an area known as Sheba'a Farms. (In 2001, the Israeli Government declared the three soldiers were believed to be dead.) Sheba'a Farms, a largely unpopulated area just south of the Blue Line opposite the Lebanese town of Sheba'a, was captured by Israel when it occupied Syria's Golan Heights in 1967. The Lebanese Government has repeatedly laid claim to the area since shortly before Israel's general withdrawal. Meanwhile, the Syrian Government has verbally stated that the Sheba'a Farms tract is Lebanese, but, as with the rest of the Lebanon-Syria border, has been unwilling to commit to a formal border demarcation in the area. As a result of secret mediation by the German Government, Israel released a number of Lebanese prisoners held by Israel in early 2004 in exchange for Elhanan Tannenbaum, an Israeli reservist abducted by Hezbollah in late 2000.

In January 2000 the government took action against Sunni Muslim extremists in the north who had attacked its soldiers, and it continues to act against groups such as Asbat al-Ansar, which has been linked to Osama bin Laden's al-Qaida network, and other extremists. On January 24, 2002, Elie Hobeika, a former Lebanese Forces figure associated with the Sabra and Shatila massacres and who later served in three cabinets and the parliament, was assassinated in a car bombing in Beirut.

A September 2004 vote by the Chamber of Deputies to amend the constitution to extend President Lahoud's term in office by 3 years amplified the question of Lebanese sovereignty and the continuing Syrian presence. The vote was clearly taken under Syrian pressure, exercised in part through Syria's military intelligence service, whose chief in Lebanon had acted as a virtual proconsul for many years. Syria, which views Lebanon as part of its own territory, has not signed a boundary agreement with Lebanon and does not have normal diplomatic relations with Lebanon. The UN Security Council expressed its concern over the situation by passing Resolution 1559, also in September 2004, which called for withdrawal of all remaining foreign forces from Lebanon, disbanding and disarmament of all Lebanese and non-Lebanese militias, the deployment of the Lebanese Armed Forces throughout the country, and a free and fair electoral process in the presidential election.

Syrian Withdrawal--2005
Former Prime Minister Rafiq Hariri, who had resisted Syria's effort to secure Lahoud's extension, and 19 others were assassinated in Beirut by a car bomb on February 14, 2005. The assassination spurred massive protests in Beirut and international pressure that led to the withdrawal of the remaining Syrian military troops from Lebanon on April 26. In the months that followed Hariri's assassination, journalist Samir Qassir, Lebanese politician George Hawi, and journalist Gebran Tueni were murdered by car bombs, and Defense Minister Elias Murr and journalist May Chidiac narrowly avoided a similar fate when they were targeted with car bombs. The UN International Independent Investigative Commission (UNIIIC) headed by Detlev Mehlis began an investigation of Hariri's assassination and related crimes, beginning with the October 2004 attempt to assassinate Communications Minister Marwan Hamadeh. Serge Brammertz took over the investigation at the beginning of 2006. In December 2006, the Lebanese Cabinet approved an agreement with the UN Security Council to create a Special Tribunal of international character which will be responsible for trying those who may be indicted as a result of the investigation. President Lahoud, Parliament Speaker Berri, and the Shia ministers who resigned from Lebanon's cabinet in November 2006 do not recognize the cabinet's decision on this matter, however.

Parliamentary elections were held May 29-June 19, 2005 and the anti-Syrian opposition led by Sa'ad Hariri, Rafiq Hariri's son, won a majority of 72 seats (out of 128). Hariri ally and former Finance Minister Fouad Siniora was named Prime Minister and Nabih Berri was reelected as Speaker of Parliament. Parliament approved the first "made-in-Lebanon" cabinet in almost 30 years on July 30. The ministerial statement of the new cabinet (which included two Hezbollah ministers), a summary of the new government's agenda and priorities, focused on political and economic reform, but also endorsed Hezbollah's right to possess military weapons to carry out a "national resistance" against the perceived Israeli occupation of Lebanese territory.

Hezbollah forces continued to launch sporadic military strikes on Israeli forces, drawing responses that produced casualties on both sides and, on two occasions in 2001, Israeli air strikes on Syrian radar sites in Lebanon. Israel continues to violate Lebanese sovereignty by conducting overflights of Lebanese territory north of the Blue Line. UNIFIL has recorded numerous violations of the Blue Line by both sides since the Israeli withdrawal. In general, however, the level of violence along the Israeli-Lebanon front decreased dramatically from May 2000 until mid-2006.

War with Israel--2006
On July 12, 2006, Hezbollah guerillas crossed into Israel, killed three Israeli soldiers, and kidnapped two others, precipitating a war with Israel. Israeli air strikes hit Hezbollah positions in the south and strategic targets throughout Lebanon, and Israeli ground forces ground forces moved against Hezbollah in southern Lebanon. Hezbollah resisted the ground attack and fired thousands of rockets at civilian targets in Israel. By the time the war ended, on Aug. 14, an estimated 1200 Lebanese civilians and hundreds of Hezbollah fighters had died, along with 119 Israeli military and 43 Israeli civilians. UN Security Council Resolution 1701, which ended the war, provided for a ceasefire, Israeli withdrawal and lifting of blockades, disarming of Hezbollah and other militias, and a ban on unauthorized weapons transfers into Lebanon. UNSCR 1701 also significantly strengthened UNIFIL's mandate and authorized its enlargement from about 2,000 initially up to a maximum of 15,000. Bolstered by UNIFIL, which by the beginning of 2007 had more than 11,000 personnel, the Lebanese Armed Forces deployed to southern Lebanon and the border with Israel for the first time in almost four decades.

The war temporarily or permanently displaced roughly one-fourth of Lebanon's population, and caused enormous damage to homes, businesses, and infrastructure. The country, which was already seriously indebted, suffered roughly $5 billion in damages and financial losses. The international community provided massive humanitarian relief, plus substantial aid for economic reconstruction and reform, with $940 million in aid pledged at an August 31, 2006 donors conference in Stockholm and $7.6 billion in pledges announced at a Paris conference January 25, 2007. Aid pledged in Paris was to be coordinated with the Lebanese Government's program for fiscal and economic reform.

.Although Syria withdrew its military forces from Lebanon, intelligence assets remained, and Syria continues to have a strong influence in Lebanese politics. In November 2006, as Siniora's cabinet neared approval of the Hariri tribunal, pro-Syrian ministers, including all the Shi'ite ministers, withdrew from the cabinet. Led by Hezbollah, pro-Syrian forces began months of massive demonstrations, sit-ins, and occasional violence with the aim of either paralyzing or bringing down the cabinet. Minister of Industry Pierre Gemayel, son of ex-president Amin Gemayel, was assassinated November 21.

GOVERNMENT

Lebanon is a parliamentary democracy in which the people constitutionally have the right to change their government. However, from the mid-1970s until the parliamentary elections in 1992, civil war precluded the effective exercise of political rights. According to the constitution, direct elections must be held for the parliament every 4 years. Parliament, in turn, is tasked to elect a new president every 6 years. A presidential election scheduled for the autumn of 2004 was pre-empted by a parliamentary vote to extend the sitting President's term in office by 3 years. The president and parliament choose the prime minister. Political parties may be formed. However, the political parties that do exist are weak and mostly based on sectarian interests.

Since the emergence of the post-1943 state, national policy has been determined largely by a relatively restricted group of traditional regional and sectarian leaders. The 1943 national pact, an unwritten agreement that established the political foundations of modern Lebanon, allocated political power on an essentially confessional system based on the 1932 census. Until 1990, seats in parliament were divided on a 6-to-5 ratio of Christians to Muslims (with Druze counted as Muslims). With the Ta'if Agreement, the ratio changed to half and half. Positions in the government bureaucracy are allocated on a similar basis. Indeed, gaining political office is virtually impossible without the firm backing of a particular religious or confessional group. The pact also allocated public offices along religious lines, with the top three positions in the ruling "troika" distributed as follows:

• The presidency is reserved for a Maronite Christian;
• The prime minister, a Sunni Muslim, and
• The speaker of parliament, a Shi'a Muslim.

Efforts to alter or abolish the confessional system of allocating power have been at the center of Lebanese politics for decades. Those religious groups most favored by the 1943 formula sought to preserve it, while those who saw themselves at a disadvantage sought either to revise it after updating key demographic data or to abolish it entirely. Nonetheless, many of the provisions of the national pact were codified in the 1989 Ta'if Agreement, perpetuating sectarianism as a key element of Lebanese political life.

Although moderated somewhat under Ta'if, constitutionally, the president has a strong and influential position. The president has the authority to promulgate laws passed by the Chamber of Deputies, to issue supplementary regulations to ensure the execution of laws, and to negotiate and ratify treaties.

The Chamber of Deputies is elected by adult suffrage (majority age is 21) based on a system of proportional representation for the various confessional groups. Political blocs are usually based on confessional and local interests or on personal/family allegiance rather than on left/right policy orientations.

The parliament traditionally has played a significant role in financial affairs, since it has the responsibility for levying taxes and passing the budget. It also exercises political control over the cabinet through formal questioning of ministers on policy issues and by requesting a confidence debate.

Lebanon's judicial system is based on the Napoleonic Code. Juries are not used in trials. The Lebanese court system has three levels--courts of first instance, courts of appeal, and the court of cassation. There also is a system of religious courts having jurisdiction over personal status matters within particular religious communities, e.g., rules on such matters as marriage, divorce, and inheritance.

Principal Government Officials
President--Emile Lahoud
Prime Minister--Fouad Siniora
Speaker of Parliament--Nabih Berri
Minister of Foreign Affairs--Fawzi Salloukh (resigned--resignation not accepted)
Finance Minister--Jihad Azour
Deputy Prime Minister and Defense Minister--Elias Murr
Ambassador-designate to the U.S.--Antoine Chedid (appointed, but not yet approved)
Ambassador-designate to the UN--Nawaf Salam (appointed, but not yet approved)

Lebanon maintains an embassy in the United States at 2560 28th Street, NW, Washington, D.C. 20008, tel. (202) 939-6300. There also are three consulates general in the United States: 1959 East Jefferson, Suite 4A, Detroit, MI 48207, tel. (313) 567-0233/0234; 7060 Hollywood Blvd., Suite 510, Los Angeles, CA 90028, tel. (213) 467-1253/1254; and 9 East 76th Street, New York, N.Y. l0021, tel. (212) 744-7905/7906 and 744-7985.

POLITICAL CONDITIONS

Lebanese political institutions often play a secondary role to highly confessionalized personality-based politics. Powerful families also still play an independent role in mobilizing votes for both local and parliamentary elections. Nonetheless, a lively panoply of domestic political parties, some even predating independence, still exists. The largest are all confessional based. The Phalange, National Bloc, National Liberal Party, Lebanese Forces and Free Patriotic Movement (FPM) are overwhelmingly Christian parties. Amal and Hezbollah are the main rivals for the organized Shi'a vote, and the PSP (Progressive Socialist Party) is the leading Druze party. In the recent parliamentary elections, an anti-Syrian opposition coalition ("March 14") emerged, led by Sa'ad Hariri's predominantly Sunni Future Movement and allied with Druze leader Jumblatt, the Qornet Shehwan coalition of center-right Christian politicians, Samir Geagea's mostly Maronite Lebanese Forces, and Elias Attallah's Democratic Left secular movement. In addition to domestic parties, there are branches of pan-Arab secular parties (Ba'ath, socialist and communist parties) that were active in the 1960s and throughout the period of civil war.

There are differences both between and among Muslim and Christian parties regarding the role of religion in state affairs. There is a very high degree of political activism among religious leaders across the sectarian spectrum. The interplay for position and power among the religious, political, and party leaders and groups produces a political tapestry of extraordinary complexity.

In the past, the system worked to produce a viable democracy. The civil war resulted in greater segregation across the confessional spectrum. Whether in political parties, places of residence, schools, media outlets, even workplaces, there is a lack of regular interaction across sectarian lines to facilitate the exchange of views and promote understanding.

Some Christians favor political and administrative decentralization of the government, with separate Muslim and Christian sectors operating within the framework of a confederation. Muslims, for the most part, prefer a unified, central government with an enhanced share of power commensurate with their larger share of the population. The trajectory of the Ta'if Agreement points towards a non-confessional system, but there has been no real movement in this direction in the decade and a half since Ta'if.

Palestinian refugees, predominantly Sunni Muslims, who numbered 405,525 in 2006 according to UNWRA, are not active on the domestic political scene. Nonetheless, they constitute an important minority whose naturalization/settlement in Lebanon is vigorously opposed by most Lebanese, who see them as a threat to Lebanon's delicate confessional balance. During 2002, parliament enacted legislation banning Palestinians from owning property in Lebanon. The Labor Ministry opened up professions previously closed to Palestinians in June 2005. The number of recent Iraqi refugees numbers in the tens of thousands and is believed to be growing.

ECONOMY

Lebanon has a free-market economy and a strong laissez-faire commercial tradition. The Lebanese economy is service-oriented; main growth sectors include banking and tourism. According to the Lebanese Ministry of Economy and Trade, Lebanon posted 5% real growth in 2004, with inflation running at 3%. There are no restrictions on foreign exchange or capital movement, and bank secrecy is strictly enforced. Lebanon has adopted a law to combat money laundering. There are practically no restrictions on foreign investment; however, the investment climate suffers from red tape, corruption, arbitrary licensing decisions, high taxes, tariffs, and fees, archaic legislation, and a lack of adequate protection of intellectual property. There are no country-specific U.S. trade sanctions against Lebanon.

Lebanon embarked on a massive reconstruction program in 1992 to rebuild the country's physical and social infrastructure devastated by both the long civil war (1975-90) and the Israeli occupation of the south (1978-2000). In addition, the delicate social balance and the near-dissolution of central government institutions during the civil war handicapped the state as it sought to capture revenues to fund the recovery effort. Monetary stabilization coupled with high interest rate policies aggravated the debt service burden, leading to a substantial rise in budget deficits. Thus, the government accumulated significant debt, which by 2005 had reached $36 billion, or 185% of GDP. Unemployment is estimated at 18% officially, but in the absence of reliable statistics, some estimate it could be as high as 20-25%.

The government also has maintained a firm commitment to the Lebanese pound, which has been pegged to the dollar since September 1999. The government passed an Investment Development Law as well as laws for the privatization of the telecom and the electricity sector, signed the Euro-Med Partnership Agreement with the European Union (EU) in March 2003, and is working toward accession to the World Trade Organization (WTO). In order to increase revenues, the government introduced a 10% value added tax (VAT) that became applicable in February 2002 and a 5% tax that became applicable in February 2003.

Plagued by mounting indebtedness, Lebanon submitted a comprehensive program on its financing needs at the Paris II donors conference in November 2002 and succeeded in attracting pledges totaling $4.4 billion, including $3.1 billion to support fiscal adjustment and $1.2 billion to support economic development projects. Despite the substantial aid it had received, the government made little progress on its reform program, and by 2006, even before the war, the debt problem had grown worse. After the war, $940 million in relief and early reconstruction aid was pledged to Lebanon August 31, 2006 at a donors conference in Stockholm, and an additional $7.6 billion in assistance for reconstruction and economic stabilization was pledged January 25, 2007 at the International Conference for Support to Lebanon, "Paris III". Unlike the Paris II aid, much of the Paris III aid was to be contingent on Lebanon's meeting agreed benchmarks in implementing its proposed five-year economic and social reform program. The International Monetary Fund (IMF) agreed to initiate a Post-Conflict Program and to assign a team to Lebanon to provide technical assistance, to monitor the progress of reforms, and to advise donors on the timing of aid delivery.

The U.S. enjoys a strong exporter position with Lebanon, generally ranking as Lebanon's fifth-largest source of imported goods. More than 160 offices representing U.S. businesses currently operate in Lebanon. Since the lifting of the passport restriction in 1997 (see below), a number of large U.S. companies have opened branch or regional offices, including Microsoft, American Airlines, Coca-Cola, FedEx, UPS, General Electric, Parsons Brinkerhoff, Cisco, Eli Lilly, and Pepsi Cola.

FOREIGN RELATIONS

The foreign policy of Lebanon reflects its geographic location, the composition of its population, and its reliance on commerce and trade. Lebanon's foreign policy has been heavily influenced by neighboring Syria, which has also long influenced Lebanon's internal policies as well. Reflecting lingering feelings in Syria that Lebanon was unjustly separated from Syria by European powers, Syria and Lebanon have never formally agreed on their mutual boundaries, and, rather than having normal diplomatic relations, the two countries are linked by a Higher Council for Bilateral Relations. Syria has no embassy or equivalent office in Beirut, while Lebanon has an "Interest Office" in Damascus. The framework for relations was first codified in May 1991, when Lebanon and Syria signed a treaty of mutual cooperation. This treaty came out of the Ta'if Agreement, which stipulated "Lebanon is linked to Syria by distinctive ties deriving strength from kinship, history, and common interests." The Lebanese-Syria treaty calls for "coordination and cooperation between the two countries" that would serve the "interests of the two countries within the framework of sovereignty and independence of each." Numerous agreements on political, economic, security, and judicial affairs have followed over the years. Syria maintained troops in Lebanon from 1976 until 2005; however, even after the withdrawal of Syria's military troops, it is believed to have maintained intelligence assets in Lebanon. In any case, Syrian influence in Lebanese politics remains strong.

Lebanon, like most Arab states, does not recognize Israel, with which it has been technically at war since Israel's establishment. Lebanon participated in the 1948 Arab-Israeli War, and despite the 1948 Lebanon-Israel armistice, Lebanon's lack of control over the border region resulted in repeated border hostilities, initiated mainly by Palestinian exile groups from 1968 to 1982 and later by Hezbollah. These attacks led to Israeli counterattacks, including a 1978 invasion, a 1982 invasion and occupation which ended in 2000, and the 2006 war. Lebanon did not participate in the 1967 or 1973 Arab-Israeli wars, nor in the 1991 Gulf War. The success of the latter created new opportunities for Middle East peacemaking. In October 1991, under the sponsorship of the United States and the then-Soviet Union, Middle East peace talks were held in Madrid, Spain, where Israel and a majority of its Arab neighbors conducted direct bilateral negotiations to seek a just, lasting, and comprehensive peace based on UN Security Council Resolutions 242 and 338 (and 425 on Lebanon) and the concept of "land for peace." Lebanon, Jordan, Syria, and representatives of the Palestinians continued negotiating until the Oslo interim peace accords were concluded between Israel and the Palestinians in September 1993 and Jordan and Israel signed an agreement in October 1994. In March 1996, Syria and Israel held another round of Madrid talks; the Lebanon track did not convene. Lebanon has repeatedly called for a solution of the Israeli-Palestinian problem as a prerequisite to peace with Israel.

Lebanon concluded negotiations on an association agreement with the European Union in late 2001, and both sides initialed the accord in January 2002. Lebanon also has bilateral trade agreements with several Arab states and is working toward accession to the World Trade Organization. Aside from Syria, Lebanon enjoys good relations with virtually all of the other Arab countries (despite historic tensions with Libya, the Palestinians, and Iraq), and hosted an Arab League Summit in March 2002 for the first time in more than 35 years. Lebanon also is a member of the Organization of Islamic Conference and maintains a close relationship with Iran, largely centered on Shi'a Muslim links. Lebanon is a member of the Francophone countries and hosted the Francophone Summit in October 2002.

U.S.-LEBANESE RELATIONS

The United States seeks to maintain its traditionally close ties with Lebanon, and to help preserve its independence, sovereignty, national unity, and territorial integrity. The United States, along with the international community, supports full implementation of UN Security Council Resolution 1559, including the disarming of all militias and the deployment of the Lebanese Armed Forces throughout Lebanon. The United States believes that a peaceful, prosperous, and stable Lebanon can make an important contribution to comprehensive peace in the Middle East.

One measure of U.S. concern and involvement has been a program of relief, rehabilitation, and recovery that from 1975 through 2005 totaled more than $400 million in aid to Lebanon. For relief, recovery, rebuilding, and security in the wake of the 2006 war, the U.S. Government substantially stepped up this program, pledging well over $1 billion in additional assistance for the 2006 and 2007 fiscal years. This support reflects not only humanitarian concerns and historical ties but also the importance the United States attaches to sustainable development and the restoration of an independent, sovereign, unified Lebanon. Some of current funding is used to support the activities of U.S. and Lebanese private voluntary organizations engaged in rural and municipal development programs nationwide, improve the economic climate for global trade and investment, and enhance security and resettlement in south Lebanon. The U.S. also supports humanitarian demining and victims' assistance programs.

Over the years, the United States also has assisted the American University of Beirut (AUB) and the Lebanese American University (LAU) with budget support and student scholarships. Assistance also has been provided to the Lebanese-American Community School (ACS) and the International College (IC).

1993, the U.S. resumed the International Military Education and Training program in Lebanon to help bolster the Lebanese Armed Forces (LAF)--the country's only nonsectarian national institution--and reinforce the importance of civilian control of the military. Sales of excess defense articles (EDA) resumed in 1991 and have allowed the LAF to enhance both its transportation and communications capabilities, which were severely degraded during the civil war. Security assistance to both the LAF and the Internal Security Forces (ISF) increased significantly after the 2006 war, in order to support the democratically elected Government of Lebanon as it carries out the requirements of UNSCR 1701 and asserts its sovereignty over the whole of Lebanese territory.

Principal U.S. Embassy Officials
Ambassador-- Jeffrey Feltman
Deputy Chief of Mission--Christopher W. Murray
Defense Attaché--LTC Kazimierz Kotlow
USAID Director--Raouf N. Youssef
Political/Economic Chief--W. Johann Schmonsees
Consul--William R. Gill
Management Officer--Barbara L. McCarthy
Public Affairs Officer--Juliet Wurr
Regional Security Officer--Thomas Grey
Economic-Commercial Officer--Penelope Wilkinson

The U.S. Embassy operates in Awkar, Lebanon (tel. 961-4-543600, 961-4-542600). In September 1989, all American officials at the U.S. Embassy in Beirut were withdrawn, when safety and operation of the mission could not be guaranteed. A new U.S. Ambassador returned to Beirut in November 1990, and the Embassy has been continuously open since March 1991. In 1997, reflecting improvements in Lebanon's security climate, the United States lifted the ban it had imposed on American-citizen travel to Lebanon in 1985. The ban was replaced by a travel warning. Nonetheless, remaining security concerns continue to limit the size of the American staff and visitor access to the Embassy. American Citizen Services are available, and the Embassy resumed full nonimmigrant visa services in June 2003.

TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Consular Information Sheets, Public Announcements, and Travel Warnings. Consular Information Sheets exist for all countries and include information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Public Announcements are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Public Announcements, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml.

The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.

Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.

The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including Background Notes and daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security information and regional news that impact U.S. companies working abroad through its website http://www.osac.gov

Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.

STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative economic, business, and international trade information from the Federal government. The site includes current and historical trade-related releases, international market research, trade opportunities, and country analysis and provides access to the National Trade Data Bank.

Revised: Feb. 2007