VZCZCXRO1118
RR RUEHAG RUEHBC RUEHDE RUEHDF RUEHDH RUEHIK RUEHKUK RUEHLZ RUEHROV
RUEHSL RUEHSR
DE RUEHLB #0843/01 2081253
ZNR UUUUU ZZH
R 271253Z JUL 09 ZDS ZDK
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 5418
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 000843 
 
C O R R E C T E D  C O P Y  (FINAL PARAGRAPH NUMBER) 
 
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 EWWT KIPR KFLU PGOV LE
SUBJECT: LEBANON: JOB CREATION IS PRIORITY FOR PM-ELECT (ECONOMIC 
WEEK IN REVIEW, JULY 20 - 26, 2009) 
 
BEIRUT 00000843  001.2 OF 002 
 
 
CONTENTS 
-------- 
 
-- PM-ELECT'S PRIORITY IS JOB CREATION 
-- USTR COMMENDS LEBANON FOR DEALING WITH CABLE PIRACY 
-- CARETAKER MINISTER BACKS TRANSPORTATION STRATEGY; MARITIME 
INSTITUTE IN THE WORKS 
-- WORKSHOP ON COUNTERFEIT GOODS OPENS IN BEIRUT; CALLS FOR 
SPECIALIZED IP COURTS 
-- MEDICAL TOURISM ON THE RISE IN 2009-2011 
-- FCS AND ARAB ICT ASSOCIATIONS SIGN MOU 
-- SWINE FLU CASES REACH 105 
 
PM ELECT'S PRIORITY 
IS JOB CREATION 
------------------- 
 
¶1. (SBU) Senior economic advisor to PM-elect Saad Hariri and 
potential finance minister in the next cabinet, Dr. Nadim Munla, 
said Hariri plans to focus on job creation and to enact a program 
creating at least 200,000 jobs over the next five years.  Munla said 
on July 21 that Hariri was considering establishing a joint 
public/private equity fund of about $500 million with job creation 
as the main criteria for equity participation.  The PM-elect was 
also considering setting up offices to help SMEs draft proposals to 
borrow from financial institutions. 
 
¶2. (SBU) Munla said the timing was wrong for telecom privatization, 
noting that privatization proceeds would only reduce public debt by 
10%.  He stressed that the GOL should reduce debt by increasing the 
size of the economy.  While government sources forecast a 6% growth 
in 2009, Munla expects growth to reach 8-10%.  (Note: Munla's 
forecast was based on estimates that $1 billion - mostly inflows - 
was spent during the parliamentary elections, in addition to a 
booming tourism season.  End note.) 
 
USTR COMMENDS LEBANON FOR 
COMBATTING CABLE PIRACY 
-------------------- 
 
¶3. (SBU) During a July 23 conference call with USTR, DOS, and 
Lebanese public sector officials on Intellectual Property Rights 
(IPR)-related steps required for Lebanon's accession to the World 
Trade Organization (WTO), USTR commended Lebanon's progress in 
fighting cable piracy and legitimizing cable operators.  USTR 
highlighted the need for Lebanon to provide IPR-related statistics 
on seizures of counterfeit goods by the police and customs and 
judicial cases to be better able to quantify Lebanon's progress in 
protecting IP. 
 
¶4. (SBU)  During the conference call, Judge and IPR expert Nassib 
Elia, quoting his own figures, said that in 2008, 482 IP cases were 
brought to the courts in Lebanon, compared to 381 in 2007.  Elia and 
Colonel Walid Habr from Lebanese Customs expected more cases in 
2009, but Habr noted that rights holders could do more to alert 
enforcement authorities of infringing material. 
 
NEW TRANSPORTATION STRATEGY 
NECESSARY; MARITIME INSTITUTE 
UNDER CONSTRUCTION 
-------------------- 
 
¶5. (U) Caretaker Minister of Transportation Ghazi Aridi July 20 
called on the incoming government to endorse the ministry's 
transportation strategy.  The strategy includes ways to deal with 
Lebanon's severe traffic problems and is backed by the entire 
transportation sector, regardless of political affiliation, Aridi 
said.  Separately, director general of the Ministry of 
Transportation Abdel Hafiz Kayssi noted that work has already 
started on the construction of a Maritime Institute in Batroun 
(north Lebanon).  The institute will help Lebanon further develop 
its maritime sector and become a hub for maritime training in the 
region; the project is estimated to cost around $2.5 million. 
 
BEIRUT WORKSHOP ON COUNTERFEIT GOODS 
CALLS FOR SPECIALIZED IP COURTS 
-------------------- 
 
¶6. (U) On July 23, the Institute of Finance, in collaboration with 
 
BEIRUT 00000843  002.3 OF 002 
 
 
the Brand Protection Group (BPG), launched an eight-week workshop on 
counterfeit and fake goods.  Representatives of private company 
members of the Brand Protection Group (in industries including 
pharmaceuticals, IT, cosmetics, clothing, cars, and luxury goods) 
will help enforcement officials identify fake and counterfeit 
products.  Participants include Lebanese Customs, the Internal 
Security Forces (ISF), and inspectors from the Consumer Protection 
Department at the Ministry of Economy and Trade (MOET). 
 
¶7. (U) During the opening ceremony, speakers stressed the need for 
greater public awareness on the importance of Intellectual Property 
Rights (IPR) and the risks associated with counterfeit and fake 
goods, but commended the efforts of enforcement officials in recent 
years.  Speakers argued that specialized IP courts were necessary 
for tougher sentences and quicker court procedures for infringers. 
 
 
MEDICAL TOURISM ON 
THE RISE IN 2009-2011 
-------------------- 
 
¶8. (U) According to a report by the Investment Development Authority 
of Lebanon (IDAL), medical tourism in Lebanon is expected to 
increase by 30% in 2009-2011 and generate revenues of around $1.2 
billion.  Acting Director of the American University Hospital (AUH) 
Dr. Marina Hage said visitors take advantage of Lebanon's low costs 
and professional doctors for general surgeries, medical treatments, 
diagnosis, and clinical consultations, as well as plastic surgery. 
According to President of the syndicate of hospitals Suleiman 
Haroun, the number of medical tourists, mainly Lebanese immigrants 
and Arabs from the Gulf, has risen in the past two years.  If the 
trend continues, Lebanon may soon reclaim its title from the 1970's 
of "hospital of the Middle East." 
 
FCS AND ARAB ICT 
ASSOCIATIONS SIGN MOU 
-------------------- 
 
¶9. (SBU) On July 15, the U.S. Foreign Commercial Service (FCS) and 
the Union of Arab ICT Associations (IJMA3) based in Beirut, signed a 
memorandum of understanding (MOU) to promote information and 
communication technology (ICT) between the U.S. and MENA region. 
Both parties will organize the MENA ICT Week 2009 Conference in 
Bahrain in November to promote ICT trade. 
 
SWINE FLU CASES 
REACH 105 
-------------- 
 
¶10. (U) According to the Ministry of Public Health (MOPH), the 
number of swine flu cases reached 105, up from 82 last week.  The 
MOPH expects the number of cases to rise, as more people visit 
Lebanon during the summer holidays.  No deaths have been attributed 
to the flu in Lebanon. 
 
HERBOL