No bailout for Lebanon without serious reforms, senior US official warns

Lebanese leadership has hit ‘rock bottom,’ says undersecretary of state David Hale

US Undersecretary of State for Political Affairs David Hale toured the site of the explosion in Beirut on August 15. aFP

Washington will not provide an economic bailout for Lebanon without far-reaching reforms that also address Hezbollah’s role at Beirut port, US undersecretary of state David Hale said on Wednesday.

“We will not be providing a bailout or long-term assistance for the Lebanese government before undertaking serious reforms,” Mr Hale said.

“That era is over. There is really no choice any longer.”

He said that the leadership in Lebanon had hit “rock bottom”.

Mr Hale told The National that the issue of maritime demarcation between Lebanon and Israel came up in his visit to Beirut last week.

Lebanese President Michel Aoun invited the US to mediate with Israel in a call with Donald Trump on August 7.

Mr Hale welcomed the Lebanese government's decision to allow the FBI to take part in the investigation of the blast.

He served as US ambassador to Lebanon between 2013 and 2015, but shied away from commenting on the next Lebanese government after the resignation of prime minister Hassan Diab.

Asked if the US would mind the Hezbollah taking part in the next Cabinet, Mr Hale did not object.

Washington has dealt with successive governments in Beirut that had Hezbollah members since 2008.

Instead, the US appears focused on reforms that the next government should undertake before it receives any outside assistance.

“Hezbollah is part of the corrupt, self-serving system in Lebanon,” Mr Hale said.

He said the Lebanese public was now aware of this, and that Hezbollah leader Hassan Nasrallah’s effigy was being burnt by protesters in downtown Beirut.

After his three-night visit to Beirut following the explosion, Mr Hale described the public anger as “extremely potent”.

“It will take a long time to repair,” he said.

Mr Hale gave a long list of reforms that the US hoped to see in Lebanon, including economic diversification, revenue distribution and Hezbollah’s access to the ports.

Assistant secretary of state David Schenker is due to visit Lebanon next week to follow up on Mr Hale’s trip.

The US is also closely co-ordinating with the French government.

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