VZCZCXRO7243
RR RUEHAG RUEHBC RUEHDE RUEHDF RUEHDH RUEHIK RUEHKUK RUEHLZ RUEHROV
RUEHSL RUEHSR
DE RUEHLB #0743/01 1871350
ZNR UUUUU ZZH
R 061350Z JUL 09
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 5260
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RHEHAAA/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 02 BEIRUT 000743 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR NEA/ELA AND EEB/IFD/ODF 
STATE PASS USTR FRANCESCKI 
STATE PASS USAID LAUDATO/NANDY/SCOTT 
TREASURY FOR PARODI/BLEIWEISS/AHERN 
USDOC FOR 4520/ITA/MAC/ONE 
NSC FOR SHAPIRO/MCDERMOTT 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EIND ETRD EAIR PGOV KFLU SENV LE
SUBJECT: LEBANON: PM-DESIGNATE MENTIONS ECONOMIC REFORM (ECONOMIC 
WEEK IN REVIEW, JUNE 29 - JULY 5, 2009) 
 
CONTENTS 
-------- 
 
-- HARIRI: NEW GOVERNMENT COMMITTED TO ECONOMIC REFORM 
-- LEBANON'S FORESTS ABLAZE 
-- WORLD BANK GROWTH ESTIMATES FOR 2009 LOWER THAN LOCAL FORECASTS 
-- RAYTHEON DELEGATION IN BEIRUT TO EXPLORE NEW INVESTMENT 
OPPORTUNITIES 
-- LEBANON'S CONSUMER CONFIDENCE STRONGEST IN THE REGION 
-- SWINE FLU CASES REACH 47 
 
 
HARIRI: NEW GOVERNMENT COMMITTED 
TO ECONOMIC REFORM 
-------------------- 
 
¶1. (SBU) In a June 30 meeting with CENTCOM Commander General David 
Petraeus, Prime Minister-designate Saad Hariri said that, as head of 
the new government, in parallel with his efforts to build up 
Lebanon's security services, he plans to pursue economic reforms, 
streamline business procedures, and improve the investment climate. 
He stressed the need for investment in electricity and water, and 
noted that $3.3 billion in money pledged for infrastructure 
investment at the 2007 Paris III donor conference was still not 
disbursed, pending reforms by the government.  To follow the Paris 
III portfolio, Hariri said he would insist that the new Finance 
Minister come from his own Future Movement. 
 
LEBANON'S 
FORESTS ABLAZE 
------------------- 
 
¶2. (U) Since June 30, fires have left many of Lebanon's forests and 
green areas ablaze.  GOL officials have been quoted as saying that 
the main reason for the fires has been exceptionally high 
temperatures, along with high winds.  However, caretaker Minister of 
Interior Ziad Baroud noted that the huge number of fires in recent 
days might indicate that the fires are the result of arson. 
Following massive forest fires in 2007 and 2008, and a fundraising 
campaign launched in 2008, the GOL procured fire-fighting 
helicopters and other equipment in June 2009. 
 
WORLD BANK GROWTH ESTIMATES FOR 2009 
LOWER THAN LOCAL FORECASTS 
-------------------- 
 
¶3. (U) In its latest Global Economic Prospects report, the World 
Bank (WB) forecasted Lebanon's GDP growth in 2009 at 2.5%.  WB 
estimates are similar to those of the IMF and JP Morgan, at 3% and 
3.5% respectively.  However, the Governor of the Central Bank of 
Lebanon Riad Salameh and caretaker Minister of Finance Mohammad 
Chatah estimate 2009 growth will reach up to 6%.  Local officials 
base their estimates on a strong upcoming tourism season, continued 
high capital inflows, and a resilient banking sector.  By contrast, 
international financial institutions seem to believe tourism and 
banking in Lebanon will be hurt because of the economic crisis in 
the Gulf, lowering growth prospects.  The Central Administration of 
Statistics estimated 2008 growth in Lebanon at 8.5%. 
 
RAYTHEON DELEGATION IN BEIRUT 
TO EXPLORE NEW INVESTMENT OPPORTUNITIES 
-------------------- 
 
¶4. (SBU) A delegation from Raytheon visited Beirut on July 2, 
meeting with officials from the Civil Aviation Authority (CAA) at 
Beirut's international airport and the Council for Development and 
Reconstruction (CDR), exploring investment opportunities and looking 
to expand Raytheon's current business activities in Lebanon. 
Raytheon representatives told us the CAA expressed interest in 
procuring additional equipment and sensors, following its successful 
collaboration with Raytheon in 1995 for the supply and installation 
of the primary and secondary radars at the airport.  Nonetheless, 
the CAA told Raytheon it would need to secure USG or other outside 
financing for future projects. 
 
LEBANON'S CONSUMER CONFIDENCE 
STRONGEST IN THE REGION 
-------------------- 
 
BEIRUT 00000743  002 OF 002 
 
 
 
¶5. (U) According to the biannual MasterCard Worldwide consumer 
confidence index survey, MasterIndex, Lebanon had the highest 
consumer confidence in the MENA region during the first half of 
2009, with historically high scores.  Lebanon's consumer confidence 
score more than doubled when compared to the first half of 2008. 
The index measures consumer confidence based on five indicators: 
employment, the economy, regular income, the stock market, and 
quality of life, on all of which Lebanon scored well.  The report 
noted that Lebanon was the only country to see a yearly surge in its 
consumer confidence in the region, as other countries were hit by 
the global economic crisis. 
 
SWINE FLU CASES 
REACH 47 
-------------- 
 
¶6. (U) According to the Ministry of Public Health the number of 
swine flu cases reached 47, up from 35 at the end of last week.  All 
patients have recovered or are in the process of recovery, the 
ministry noted.  No deaths have been attributed to the flu in 
Lebanon. 
 
SISON