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November 18, 2005

Lebanonwire

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Lebanon difuses diesel tension, starts fund
By Adnan El-Ghoul

BEIRUT, Lebanon - Lebanon's Cabinet has called on its wealthy citizens and expatriates abroad to donate funds to an account set up to cover the increasing costs of diesel during the winter.

"This way," said Information Minister Ghazi Aridi, "the Lebanese will prove how much they care for each other in time of need."

After recent protests demanding the lowering of the price of diesel, the Lebanese government decided Thursday to pay LL3,000 for each 20 liters of the fuel during the winter until the end of February 2006. However, the decision fell short of adopting a fixed price as some trade unions demanded.

After the Cabinet session, Aridi said: "The government will deduct LL3,000 on the actual world price at the time of purchase." That support would end, though, "if the price goes down to LL12,000."

As the government is suffering its own revenue concerns, Aridi explained "the government will open a special account at the Central Bank with the amount of LL55 billion as a loan to be managed jointly by the finance and energy ministers."

Sources close to the government said the exact source of this fund was still the subject of debate between Siniora and Energy Minister Mohammad Fneish.

The premier is arguing against allocating the funds from the Treasury's revenues, while Fneish suggests cutting from profits made from selling fuel, about LL4,500 on each 20 liters.

Before the meeting, Labor Minister Tarrad Hamade told reporters he expected the government to lower the price of diesel to LL12,000 for 20 liters. However, with the LL3,000 subsidy, 20 liters will now cost LL14,300.

The decision is expected to defuse tensions after popular protests throughout the week, but whether the National Labor Federation will cancel its plans to hold protests against the government's social policy is not yet known.

The Federation had demanded to freeze the diesel price regardless of the fluctuations of world oil prices.

The government's decision is seen as a temporary fix on the socio-economic front, but the differences over political issues are still on the rise.

Several MPs have posed questions to the government through Speaker Nabih Berri, with the head of the Loyalty to the Resistance bloc, Mohammad Raad, continuing to hammer the premier over his comments to a UN envoy.

Raad questioned the government about the content of Terje Roed-Larsen's latest report, in which he claimed Siniora had committed his government to the full implementation of Security Council Resolution 1559.

"The difference between respecting international law and decisions is one thing, and commitment to implement them is another," he said.

Raad was referring to the carefully worded government policy statement that respected UN resolutions while asserting that implementing them should be within the framework of preserving national unity and through dialogue.

"The Lebanese are fully aware how carefully the government statement was drafted to assure the unity of the two squares (referring to the two rallies in Martyrs' Square and Riad Solh Square on March 8 and 14) that granted Siniora's government an unprecedented vote of confidence," he added.

Raad further asked Siniora if he had offered Larsen the government's commitment to disarm all the militias, demanding a clear explanation on this issue.

Meanwhile, Hizbullah officials and MPs continued to increase their rhetoric against the resolutions, stressing the need to oppose what they called "the full foreign mandate over Lebanon."

Sheikh Hassan Ezzeddine, Hizbullah's official representative in the South, said his party is not concerned with Resolution 1559, asserting that the resolution "is no longer in effect."

"Any commitment from the government to implement this resolution that hurts the resistance, which is the main resistance in Lebanon's defense, will divide the Lebanese. - Additional reporting by Nafaz Qawas. - Daily Star

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