No Financial Bailout for Lebanon Until Deep Structural Political Reforms

No Financial Bailout for Lebanon Until Deep Structural Political Reforms

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There can be no financial bailout for Lebanon, a senior U.S. official said Saturday, calling on the country’s political leaders to heed popular calls for change, real reform and an end to endemic corruption. The U.S. wants to see deep structural political reforms before any aid reaches its stricken economy.

David Hale, U.S. undersecretary of state for political affairs, said the U.S. and its allies will respond to “systemic reforms with sustained financial support.”

He also called for a thorough and transparent investigation into the Aug. 4 blast that killed nearly 180 people and wounded thousands.

He said an FBI team is arriving this weekend to take part in the probe at the invitation of Lebanese authorities.

We can never go back to an era in which anything goes at the port or borders of Lebanon — David Hale, U.S. Undersecretary of State

NO FINANCIAL BAILOUT FOR LEBANON

Hale arrived in Beirut on Thursday, where he met with volunteers helping out at the site of the blast, as well as the country’s top political and religious leadership.

Hale said in a recorded message posted on the U.S. Embassy website Saturday:

America calls on Lebanon’s political leaders to finally respond to the people’s longstanding and legitimate demands and create a credible plan – accepted by the Lebanese people – for good governance, sound economic and financial reform, and an end to the endemic corruption that has stifled Lebanon’s tremendous potential. But as the dozens of young activists and volunteers I met so bluntly demanded, there can be no bailout.

Hale’s comments were in line with Washington’s message before the visit. But he didn’t detail whether the U.S. and Western allies are ready to support a government in which Lebanon’s powerful Iran-backed Hezbollah group has clout.

After visiting the site of the blast, Hale called for the state to exercise control over its borders and ports. It was a clear reference to claims Hezbollah group controls them.

Hale said:

We can never go back to an era in which anything goes at the port or borders of Lebanon.

Washington and its allies consider the Iran-backed group Hezbollah a terrorist organization. They have accused it of abusing government funds and undermining state authority. There was speculation in the local media that Hale would be pushing for a government that excludes the group.

This is a moment for Lebanon to define a Lebanese — not a foreign — vision of Lebanon. What kind of Lebanon do you have and what kind of Lebanon do you want? Only Lebanese can answer that question — David Hale, U.S. Undersecretary of State

ONLY AN INDEPENDENT INQUIRY INTO THE BLAST

Popular anger has been building up in Lebanon against the ruling elite’s corruption, mismanagement and political uncertainty many blame for pushing the country toward bankruptcy and poverty.

The blast only increased the public’s rage. The cause of the fire that ignited nearly 3,000 tons of ammonium nitrate at Beirut’s port remains unclear. Documents have emerged showing the country’s top leadership and security officials were aware of the chemicals stored at the port.

Many Lebanese are calling for an independent international probe, saying they don’t trust the long-entrenched political factions to allow any results to come to light that are damaging to their leadership.

Under pressure, Lebanon’s government resigned Aug. 10 and is serving in a caretaker capacity. So far, there are no formal consultations underway on who will replace Hassan Diab as prime minister and no likely candidate has emerged.

But the flurry of diplomatic visits appeared designed to influence the forming of the new government.

Western leaders have said they will send aid directly to the Lebanese people and that billions of dollars will not be pumped into the country before major reforms take place. But there will be no financial bailout for Lebanon before it embraces structural reforms.

Hale said the United States has so far donated $18 million to the Lebanese people in terms of food and other essential. He added that the U.S. is also prepared to work with Congress for an additional $30 million to ensure the flow of grains after the capital’s silos were destroyed in the blast. The aid, he said, will be handled directly by the World Food Program.

In a jab at Hezbollah, Hale said:

This is a moment for Lebanon to define a Lebanese — not a foreign — vision of Lebanon. What kind of Lebanon do you have and what kind of Lebanon do you want? Only Lebanese can answer that question.

IRAN IS QUICK TO SHORE UP HEZBOLLAH. ITS UNPOPULARITY GROWING.

Coinciding with Hale’s visit was that of the Iranian Foreign Minister Jawad Zarif who said Western nations are exploiting Lebanon’s disaster to push their political dictates. Iran is Hezbollah’s main foreign backer and has provided the group with financial and technical support throughout the years.

On Friday, the United Nations launched a $565 million appeal for Lebanon with immediate humanitarian assistance and initial recovery efforts. Last week, international donors pledged nearly $300 million of emergency assistance to Lebanon.

Najat Rochdi, U.N. humanitarian coordinator for Lebanon, called for more funds to cover the critical needs of shelter, food, health and education.

Rochdi said most donors have asked that the UN channels the aid, which the UN would coordinate with Lebanon’s armed forces to ensure access.

“We will be very strict about the use of humanitarian assistance. We will be monitoring closely every single delivery of our humanitarian assistance. She added “We will be accountable not only to donors because our accountability goes also to the affected population.”

Also on Saturday, families and friends buried Ralph Malahi, a 23-year old firefighter. He was among 10 firefighters who died in the explosion.

Malahi was given a hero’s funeral in Beirut. Lifting Malahi’s coffin, thousands paraded through different parts of the city, firing weapons into the air in commemoration.

Malahi is the seventh firefighter that the volunteers retrieved from under the debris at the scene of the blast. Three remain missing.

Malahi’s mother, weeping, blamed the government for her son’s death. “Why did you not evacuate the port?” she said, in reference to the government’s knowledge that highly explosive material was stored at the port.

No Financial Bailout for Lebanon Until Deep Structural Political Reforms

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