Lebanon - Current economic position and prospects

RESTRICTED Report No. EMA-6a nPs r was Preparea Tor use within Te DanK ana ors amiarea organizarons. I They do not accept responsibility for its accuracy or completeness. The reprma nor be published nor may it be quoted as-representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION f" TTT3 r) MNTTM 'f ?.r% ?.f Iyr X Td- *%-%NT"I AND PROSPECTS OF LEBANON April 18, 1969 Europe,Middle East and North Africa Department CURRENCY EQUIVALENTS 1 Lebanese Pound = 0. 32 U.S. Dollars 1 U. S. Dollar = 3. 16 Lebanese Pounds 1 MAilion T.ihnA -P nn = 31A. O TT. S. Tollars These rates represent the approximate average of 1968 free market rates, which fluctuated between LL 3. 15 and LL 3. 18 per U. S. dollar. Year-end rates for previous years are given in Table 14. CURRENT ECONOMIC POSITION AND PROSPECTS OF LEBANON TABLE OF CONTENTS Page No. BASIC DATA SUMMARY AND CONCLUSIONS .....................................i - iii I. INTRODUCTION .......1...........................1 II. GROWTH OF THE ECONOMY .................... 3 III. MAJOR SECTORS OF THE ECONOMY ....................... 4 Agriculture ............................................. 4 Industry ................................................ 7 Construction ....................................... 8 TransDortation .................................... 9 Tourism .......................... I ................ 10 Utilities ................................... ... 11 IV. BANKING, MONEY AND PRICES ....... ............. 12 V_ FORFTrN TRADE AND) RALANCE OF PAYMENTS I--15 VT. PTIRLTC qROTOR ------ 17 VII. PROSPECTS ............................................ 21 STATISTICAL APPENDIX MAP This report is based on the findings of an economic mission +n~~~~~~~~~ T.h^a4 nnolaebr14 ne%v4a+4n" of Messrs. C. H.Tosn, M.deitA-.-ilngrol a nd C. H. Thompson, G. M. de 'Wit, A. Cilingiroglu and "I Ienk-4eswaran.  'DACTO 'nfArrPA Iu UX7 V c U . . . UCL Ve dULUVLL U AJVLULUIA May UV11- tain a considerable margin of error as a result with caution) Area: 10,400 km2 (4,100 sq. miles) of which: cultivated 2,750 km2 (1,075 sq. miles) Irrigaea 4Uu cm- k i50 sq. miles) Population: 2.u - 2.5 millon (estimate 196). Pne latest census was conducted in 1932. Rate of growth: not, available but estimated at around 2.5-3.0 percent per annum. Population density: 190 - 2h0 per km' k90-610 per square mile) Political Status: Republic Gross National Product, 1966: LL 3,991 million Per capita: LL 1,774 ( $ 556), assuming a population of 2.25 million in 1966. Gross Domestic Product at factor cost, 1966: LL 3,568 million of which in percent: Agriculture 12 Industry and handicraft 15 Construction 6 Services 59 Government 8 Money and Credit: 1968 Rate of increase (LL million 1964 - 1967 as of June 30) (% p.q.) Total money supply 1,685 4.2 Time and savings deposits 2,532 1.5 Commercial bank claims on private sector 2,313 5.4  Public sector operations: 1967 Rate of increase (LL million) 1962 - 1967 (j p.a.) Government current revenue 521 7.7 Government expenditures 592 7.2 Deficit 71 5.1 External public debt: Outstanding debt (including undisbursed) as of August 23, 1968 $ 58.6 million Total annual debt service (1968) $ 5.5 million Debt service ratio (1968) Less than 1% of exports of goods and services. Balance of payments: 1966 Rate of increase ($ million) (1961 - 1966) _______(% p.a.) Exports 186.6 20.4 Imnorts 553.8 10.8 Invisibles (net) 257.4 7.2 MirrAnt, :oount defirit 109.8 7.h Shqrp of total Aynort..- awnludiroPold: Average 1967 1961 - 1967 Other foodstuffs 19% 18% I. M. F. Position ($ million): Average November 1968 1062 - 1;966 Quota 9.0 6.8 Drawings Gross foreign exchange reserves ($ million): June 1963 1964 - 1967 Bank of Lebanon 321 262 Tlotnalrc- -1 L-CWs 7 I Total7576  External financi-al assistance: Year Donor Amount ! 1955 IERD $ 27.0 million 1961 Govern-ent of Kuwait $ l.0 million 1966 Government of Kuwait $ lh.0 million 1967 Kuwait Fund $ 6.7 million 1967 France $ 25.5 million 9 -Kuwa ,-iFnd A$ 2.8 million 1968 United States $ 12.0 million $102.0 million 1/ Original loan -mount.  SUMMARY AND CONCLUSIONS i. Until late 1966 the Lebanese economy had been growing by some 8-9% per year. The rapid growth was primarily due to the dynamism of the private sector which adapted itself to changing conditions and which readily took ad- vantage of the opportunities that presented themselves. The Government until then abstained from intervention in economic affairs and these liberal condl- tions greatly contributed to the expansion. Growth was interrupted by the collapse of the largest Lebanese-owned bank, Intra Bank, in October 1966. Stagnation throughout the economy was evident as existing credit lines were reduced and new credit became scarce. Moreover, businessmen hesitated to go ahead with Dreviously Dlanned spending until the consequences of the failure could be more clearly seen. The adverse effects of the banking crises were wearin2 off. when in June 1967 the six-day war broke out. Although Lebanon did not participate in the fighting, almost all sectors of the economy were badly affected by a wides-read decline in sTendin2. In narticular construction and initially also tourism suffered. In 1968 recovery set in. On the basis of wpnral indinators it would !eem that at the end of 1Q68. nroduction was running at its 1966 level. Construction, though, remains depressed but transit trAeA iq honmina nP n rpqult of the nlnqurp of thp RiP7 Canal ii.. Almost amll apnr ~nof t.he ecnomyrn had ahon saifcoyirwhutil 1966. The expansion had been particularly pronounced in those sectors that received astimulus from abroad The number of for4n +aellas n to he country had grown by 23% per year and tourist services increased accordingly. RBan-king, f4+ A F',n +ha 4mf1m.r 1 omma ammu,+ nP fr-_+o1 Psam n+hhe Aveh countries. Construction, prior to October 1966, boomed as a result of the Aem.A Pno rPP4 n n.en a -nr n4-, #4 nnA Pa, +an 4c+ ofaic sa+4an 'by+ aPlo apartments, mountain dwellings, etc.). International transportation, related + onr4sm, 4naaaA auO+an+4ot1aw A+hak. naf+ n. 0ear.lon aa+4..-n+n.41 Agriculture shifted to high value crops and animal husbandry and output in- cr a ed "y.. f _ -a T nA,,-.4-4 -1 _-A.,-4- 4 - 4 - - A 1 _ _Q - - -A VO.~S4.U '.~ P= 'Y 4-J4.A SV. .LO6.J P SSL~ =%;.LWJ4A V.J. ~.~ . &J. L 7Mm ~w P.C6. * WA~4 growth might even have been faster, had proper credit facilities been avail- able. 444 Dnaon+ on. nw+1, Ao,aoA,,+ non ar l4+4-1 A-w1 -a---+ 4m +.o *~~~~~~~~~~ - -. - - rS.-VC .s s- r . . . n r~ - - V J%SJ.* 0 ... VA region. Given reasonably stable conditions, the outlook for the next few years is for a resumption oi grthuouugu at a lower :ratxum ue th'1y .1 &Ab I-nc- 4. . ~U.L1JS.LJ1 V ~LU I.L IJULL 0'. . AJ~L .L.S~ t.,Ll.U U I I .L>P! I * . LL.11 IC possible exception of tourism (and, for the time being, transit traffic) the eAtral stimu4us vu wuicu -tue country uas unu -tnrivig u acav capital exports increasingly bypass Beirut and therefore banking may have in the economy. As long as the unsettled conditions in the area prevail, construction may not fuly reg-aits previous level. Undar nese conuitons it would seem appropriate for the Government to more actively stimulate the Uevelopment of agriculture and indUtry, besides creating, wherever possible, the proper conditions for the private sector to adapt the large service sector to the changed conditions. - ii - iv. There is still unused potential in agriculture. One of the great challenges the country faces is increasing farm incomes, which on a per capita basis are only 20-25% of those in urban areas. In combination with an exten- sion of the irrigated area, agriculture could further shift to high value crops and animal husbandry. Possibilities exist for agriculture-based indus- tries. Thus, there is room for an improvement in the rural standard of living provided the size of the farming community can be curtailed. The Government is doing well in providing the countryside with potable water and power, but improvements in education and health care are still needed. v. Industry offers good growth prospects provided long-term capital at suitable terms becomes available. There are opportunities both for ex- tending family-owned enterprises and for developing new management forms and product lines. Tourism may be expected to continue to grow. The private Rector has generally nrovided adeauate accommodation and entertainment. The Government can stimulate tourism through improved physical planning, con- _tru-tinn infracztrnot.urp and nnmattina ahneR. v- Arnna 100 the Government heann to reali7p thnat itR ative and systematic participation was required for a harmonious development of the countrv. Devponmpnt nnendina on infrastructure- thouah limited by a short- age of adequately prepared projects, has since increased steadily. Develop- ment pro"ects are mostly 1- l I hnqn. The main APipianrw in Mlanninq consists of a lack of coordination between projects sponsored by different branches of Government and of a neglect of private sector -projects and fi- nancing requirements. Thus, projects requiring joint initiative of various -ihlir- affnnia ma Ar, Yn+a-n47a enlytr ri+h eiffie-iilt+v (T.Atnni i- cn+inn1 ni- not at all (systematic development of the Beirut metropolitan area). vii. Development presently is limited by lack of funds rather than by +ekavailwi lity+ of -we-1ll prepmaeA pr4n+ Jh anh.WL en+skeAwhnQ its financial reserves. Although the Government is taking measures to im- prove its f4nancia1 s+ton+ , Jt will have to borrow to fi nance its develop- ment program. Borrowing requirements may be of the order of LL 50-100 million annali LI OVUJL _ to come.LL viii. . SpurredA bY theV fILure" of L4ntra BMAnM, the Government is S.lowly adopting a more active attitude in economic affairs. In spite of its achieve- menu muc remaius toedoneu e u rInMe Cie peal bUoU M1u ecUUmic b6ruc,ure of Lebanon and the need to avoid interference with private sector initiative (which has been the main driving force in the economy) justifies a gradual course of change towards greater Government involvement in the economic pro- cess. In more technical matters, like enforcing tax collections and improv- ing the accounting system and organizational framework of Government (urgent- ly needed to increase the efficiency of public sector operations), progress could be made more rapidly. ix. Although balance of payments and banking statistics do not allow a conclusive analysis, it is evident from the movement of the exchange rate and foreign assets that the country has been in a strong external payments position. Foreign assets are considerable, partly because the commercial banks keep foreign exchange to cover their large foreign obligations. Foreign assets held by the Central Bank amounted to about LL 1,000 million kequira- lent to about 7 months of imports of goods) at the end of 1968, mostly in gold. To safeguard the stability of the currency, which has been the corner- stone of its relative prosperity, it is desirable for Lebanon to have a high level of foreign assets. The country harbors an unknown but possibly signifi- cant amount of foreign capital in bank accounts denominated in Lebanese pounds, which, in case of repatriation, might draw on Central Bank reserves. More- over, high reserves are required to maintain continuity in the economy in case of emergencies. In this light, foreign assets should be considered adequate but not excessive.  I. INTRODUCTION 1. Lebanon covers an area of approximately 200 by 50 km on the eastern shore of the Mediterranean. Its population numbers from 2-2.5 million ex- cluding 160,000 Palestinian refugees and about 200,000 other foreigners, mostly Syrians. The country does not possess mineral wealth (except for some marble and salt). but it has a definite asset in its beautiful mount- ains and its historic sites, which attract many foreigners. Moreover, it is not unfavorably located as transit point for imports to and exports from the Arab hinterland. 2. Since ancient times the country has been engaged in agriculture (still a maior occunation) and tradina. As a. result of the emphasis placed. on the country's trading function, the economy is by tradition liberal. Until recently the Government has focussed on monetary matters and abstained from intervention in other economic affairs. This has by and large been hnfficial to thp nountrv althnuah some undeirable conRanupnnes have mani- fested themselves. Under liberal conditions, a service sector has developed, which ha ranidlv gr^on sine 1050 Th^se Qervinpa onn hp nln%nif'iAe in three categories. First, there are services rendered to the rest of the Arab World. It nrovidan an-onat and transit uervir-Q frn th imnnrt.q and exports of the Arab countries in the East. Furthermore, its cool mountains are av+nasively ued as nmmer raart hv many Awrha some of whom have in- vested heavily in real estate. Lebanon also provides education and health se-r-ies to -ther Arabs and hae chabsoha many who nlef+ + cut, or+ rigin Second, a large part of its services is rendered to nationals and enterprises .of Erope anA Ajol, Am r4a. T+ t ai accmmoA+aes +tMnsi4 Wnd t +-minlfasc li+es for two western-owned oil pipelines 1/. A considerable number of western +ourists Vr,S4+ T-k---- Pn - 4+- -+-71 ha- -+- 1-4-+--4n - l a -1A ---- -- tional facilities. Moreover, many enterprises from the West have set up thirV.L regional LLLL,1.L hedqarer L).&L% m14O C" i1'.AtCer. mediary in banking between the Arabs and the rest of the world. Large amounUt of capLts"I rum vnthr M.LLU UVvAuera.. nPV1 vaIuI= p U U iMUk WII-C,u ly with branches of banks from Europe and the U.S. 3. Lebanon has experienced political stability, which has been and its many religious factions. The population consists of approximately equal numbers U Curisu.iars anu Molems kecAh sUUU.V.LUCU L11 IULtrUU5 ZSCLnbL. Lu1 Parliament, seats are allocated in fixed ratios to Christians and Moslems and in oUverment the impUrtant unc%uuJ U re u gu u aoUng rei.gious Lzes. In private enterprise, religion is usually less of a consideration in matters of employment or business trunactions. The rise of a rather large middle class in the urban centers and the slowly increasing importance of inter- religious institutions (labor unions, public schools and universitles) nave in recent years somewhat eased the once sharp distinction between the major religious groups. Nevertheless, it remains a dominant factor in Government decision making, which is geared to avoiding the appearance of discrimination against any religious grouping. 1/ The IPC pipeline from Iraq and Tapline from Saudi Arabia. 4. The wish of all concerned to continue the existing modus vivendi has prevented any kind of population policy. Although data on employment are not available it is evident that unemployment has not been a problem. The country has actually provided employment to a large number of expatriates, predominantly as unskilled laborers in agriculture and construction. The latest comprehensive population census was conducted in 1932 1/. Later counts have not been made for fear of upsetting the accepted balance in representation and executive power. Therefore it is impossible to accu- rately determine the growth rate of the population, which is estimated at 2.5 - 3.0 percent per year 2/. Neither public nor private non-profit clinics for family planning exist. 5. Lack of population and employment statistics makes it impossible to determine which sectors have absorbed the increases in the labor force. Since 1960, the latest year for which relevant statistics are available (see table 3) the labor force has probably increased by roughly 150,000 persons. In recent years the service sector has shown particularly rapid growth and it may be expected that most of the additional labor force has found an oc- cupation in a variety of services (especially tourism) and to a lesser extent in agriculture, industry and the armed forces. 6. There is a continuous movement from rural areas to urban centers, especially Beirut and Tripoli. Presently, about 40% of the population lives in the Beirut metropolitan area and 60% lives in urban centers of 10,000 in- habitants or more. In recent years, the Government has improved living condi- tions in rural areas. Most villages now have piped water, electricity and Dublic telephone. Educational and health services, however, are often un- satisfactory. T. The Government is implementing a system of labor legislation and social security. It has established a minimum wage of LL 160 per month for workers 18 years or older. Employment of children below the age of 13 is prohibited and workers between the ages 13 and 18 should receive anrentice- ship training. The age provisions are not always rigidly enforced. Social security nresentlv nrovides a family allowance of un to I.L 69 npr month and a lump sum payment (one month pay for each year of service) on termination of emnnyment. Emnlovers onntrihut 1 of unzpq to the Annial ecurity Fund, which reimburses eligible workers. A medical insurance scheme is to be establishe hri n tlip near futu.re. Th Goenmn n+. n1nnempac insllwanceA against the financial consequences of labor accidents. 8. There are 125 labor unions concentrated in 9 confederations. They are resnzeb ean~d professon w+'-,,x, regard to reolion Oveal membership is estimated at 30-50% of potential. In some cases membership is 1/ An incomplete rationing census was held in 1942. 2/ IRFED, French planning consultants to the Government, estimated the growth rate of the population in the late fifties at 2.7% p.a. - 3 - weak. Agricultural laborers and civil servants are not permitted to unite in labor unions. Collective bargaining, though still in its infancy, is increas- ing. There have been no major strikes. 9. Provisional data indicate a per capita GNP of LL 1,774 ($556) in 1966. As a result of the war of June 1967, per capita GNP dropped temporarily but at the moment it seems that production has largely regained its 1966 level. II. GROWTH OF THE ECONOMY in_ A nPrind of viaoroun Pxnansion bean in the early fifties. Under influence of external developments, a great variety of activities (see para- granh 2) ahiftpd frenm Plaw6rberp t T.hLanon and durina the fiftian and early sixties Beirut developed into the area's most important business, cultural and tourist center.- Growth wan only, temnponily affected hy the 1O1 War and the civil disturbances of 1958. National accounts are only available for the yana 10-10-s Vn-r marlipy- vrnv nn -alPh1e inrnm Antimaton are available, but on the basis of the few indicators available, growth of GNP in the f+fties and early sixt4ae is usually placed at around 8 perent npr annum. From 1964 until 1966, GNP increased by some 10 percent annually (see table 4). Der capit+ (IT A-_4__ +hk -m n""4-A 4vna .1-^1+ 7 Iam.entw raov .411 -.n -C5 , . .#.. C~l% ...-- - - - - - - -I F --1± .74 to LL 1,774 ($556) in 1966. 11. Almost all sectors of the economy contributed to the expansion, but growiA uas vbeen abve aveage in Ducorss ra-1 u .-A u- 4--4- -4m -41 Iv.," banking. As a result, the share of agriculture in GNP, which had been grow- .Lug cat 6 percunt per annum, mus uave ucreasedu. Duriug lyu/bb thuse avr- aged 11.6 percent. Industry, which may also have exceeded average growth, made up 13.1 percent I of r GDP rius 964t/UU,, in Vt l, the paCOn of prouuc- tion that had developed in the mid-sixties consisted for roughly one-third of goods (agriculture, 1uu.ry auu cun1LU.ULuj, IUI- Un-U.Luru U1 L1rAut1 services (largely domestic) and for one-third of other services. In addition, net o .Lfuauo incomeLru u \mfrom abuou-di UU rAtuAru ou fvOnemogn u to over 3 percent of GDP. The direct contribution to GDP of spending by 12. vuring yV4/OV private consumpion as grown somewhaT less than GNP (about 9 percent per annum), but consumption of Government rose faster iL+ percent per annum) so u in total, consumption has increased at about the same pace as GNP (see table 5). Investments have been growing at 14 per- cent per year during 196too. Investments during that period have been Vi- nanced for 65-70 percent by savings (of which some 75 percent private), for some 5 percent by exploitation surpluses of enterprises 1/ (including depre- ciation allowances) and for the remainder (25-30 percentT by foreign capital. 1/ Public enterprises and autonomous agencies only. 13. Foreign caDital inflow (to a large extent in the form of foreign purchases of real estate and savings deposits denominated in Lebanese pounds) for financing investments in 1966 and earlier years amounted to about LL 200-300 million annually. Some investment opportunities in the private sec- tor have probably been foregone for lack of finance. This has been evident in the canning industry and may have been true in some other branches. No meaninzful estimates of how much more could have been absorbed are available. Until 1966 the Government had not postponed planned investments for lack of funds. Project nreparation was the effective restraint. I), Econmic~ a-rnt-,.h ws%; intprriintri hv thp fniliirp n~f thp IFrF-q Lebanese bank, Intra Bank, in October 1966. The resulting slowdown (though less serinus than oame ha farnd) wac annarent mainly n a asult of a discontinuation of existing lines of credit but also because new investments and oten+ pndngwenx sntone a ad ti la h nnaianenMoC r%P +hD fa4 1I?a 1lA be more clearly seen. The economic effects of the Intra Bank failure were were much more serious than those of the banking crisis. Demand in Lebanon fPll subst+.+a41 ..ec+4ig almosn+ a11 sec+ors o +,' -nans ---+--ul,w construction. Moreover, the number of western tourists dropped considerably assom,n in+a of interent 4n the ara were nol aloner a4hla vr -aci en-d different routing. Lebanon received a windfall in the form of increased tourist visits from Arabs, who refrained from vacationing in Europe in the transit trade, industry has taken advantage of the disruption of normal sup- ply Jines elsewhere in the Arab world. n4ternal demand has picked up. Con- struction, however, has remained depressed. On the basis of general economic Indicators kcstm 1tfuL6, tourist ar&riva-Ls, etc., it. wuld± semtuat t.l-u 1968 Lebanon had regained its 1966 level of output 1/. III.. MAUiJOR SECOU R OLFl HE-ECON01E1' Agriculture 16. About 40% of the labor force is fully engaged in agriculture and 10% in seasonal or part time employment. Agriculture contributes only some 12% to GNP. Thus, farm incomes are very low. Per capita income of the agricultural community averages LL JU per year against some LL 1750 per year in other segments of the population. All agricultural land is privately owned, though not necessarily by the farmer. The size of the holdings is 1/ In the meantime the population probably increased by about 125,000 persons. The increase in the number of Lebanese dependents on its GNP is partly offset by a reduction in the number of Syrians employed in Lebanon, especially in construction. - 5 - small; 50% covers less than 1 ha and 90% do not exceed 5 ha. Land in general but especially agricultural land is scarce. There are 305,700 ha agricul- tural land of which 60.000 ha are Dresently irrigated. Another 67.000 ha can be irrigated and in many cases present irrigation systems can be improved. Rainfall varies within the country from 300 mm (at Hermel) to 1000 mm (in the Lebanon mountains) and occurs mainly in winter so that summer irrigation is usually neeeded. 17 Climntit -nltion in Tehanon vary nngidersahlv mvr qhnrt dis- tances and as a result agriculture is rather diversified. Principal agricul- tural products are wheat, fruits (larealv annlns nitrum and gaens) a va. riety of vegetables and in recent years, also dairy and poultry products (as table 6). Gross outnut± at ann±ant prices almost doubled during the twelve years preceding 1967, representing a growth rate of 6% per year. This inrac de +a laffn ov+Dan+l af+±.4hni+ob,l +,- +h~ chr i'nv.ao 4n~ +ha~ ne duction of animal products (particularly milk and eggs) as a result of the fl%llammV.f,4 c a+4 r.v nC +ha ranC+4-., 4.,An,0+w., arA +ha n mAo.v.4 yn+4 n ,-P An4 w. c o-hMh.I-.- . a 1 . an.t 4. on o+1t. +1 thea pou~ 'li-r -.4. +1-l _.p A-4- farming. In addition, higher yields have, in some cases, been realized ac- o.mp4anieAh a 04 5 U 4M - u -pS Swa. OutA Of + w_-at Wn+kd 0-thaer .L s has largely been stable at around 90,000 tons per year but production of 4kLr .U it 114 *c6 UaJ4. UMX. S.LlSA Utl~ L.W W f %IL . L UJU0J L.6 LI.%.U4 0... SJUJ4. 4' A continues to represent about half of production value. Sugar production has uP. In kerm u va-"ue, produutinofu agr-*c--"ur-' produucts covers Lki.J In termsUi of. vt"LA~ pLUU .LLUIU L.L t'UI1.L JUU.. VtL consumption for about 70%. Net imports of agricultural products presently are of the order of LL 250-3OU million annuaLly. A Ueficl exisUs on tne whole in the supply of cereals, sugar, and some animal products. There is an exportable surplus of fruits. As a result of population growth and the rise in incomes, consumption of agricultural products has increased by about 5% per year in recent years. In qualitative terms, consumption of hign protein food (animal products) rose more rapidly (7% p.a.) than that of starchy foods, such as grains and pulses. Though the growth rate of procUe- tion has been higher than that of consumption, the increase has been insuf- ficient even to reduce the trade deficit in agricultural products. The table below summarizes the main developments in the supply and consumption of agri- cultural products. Index of Agricultural Production, Cnn;nton and Trade Definit (10h/56 = 100) 1050/61 10A&4 106 A 1967 Animal Products 144 289 334 333 C-rops 1710 12 1 Animal Products 131 195 205 1/ Trade Deficit 2/ 107 140 160 138 1/ Not available 2/ Sections I, II, III and IV of the Brussels's nomenclature. Source: Production and consumption - Ministry of Agriculture Trade deficit - customs statistics. 19. Development projects center around the extension of the irrigated area. In addition to several small schemes, projects for five major areas, covering some 70,000 ha, are under preparation (see map and table 7). One will use water from the Orontes and another will depend on underground water and small surface streams. The other three will draw on the waters of the Litani. The possible uses of the Litani water resources will be studied under the Bank/FAO cooperative program. Such a study is required to arrive at an optimal allocation of irrigation water to the various projects. Rivalry between executive agencies and political considerations delay the full use of Litani waters and may lead to less than best possible results. 20. Government assistance to agriculture, in addition to extension services and the provision of some marketing facilities, consists of paying subsidies for apples, wheat and sugar beets as well as the institution of protective duties for eggs. Moreover, imports of agricultural inputs are exempt from import duties. The Government promotes the creation of a cooper- ative bank but the institution has not become operative for lack of funds. The Plan Vert gives interest-free advances up to LL 10,000 to farmers for land improvement and reclamation. Funds have been allocated for 10 years; LL 26 million for administrative expenditure and LL 40 million to be extend- ed in loans. During the first 4 years of its operations the Plan Vert has not proportionally spent its allocations. A 20-year reforestation program exists but because of a shortage of funds no work is being performed under the plan. Industry 21. Industry consists largely of light industries in the field of food processing, textiles, and other consumer goods. Major products are sugar, flour, beverages, cigarettes, cotton and wool fabrics, furniture, and shoes and other leather goods. Other industries include paper, oil refining, petrochemicals, and cement and other building materials (see table 8). In 1966 a fertilizer factory with foreign participation started production. 22. In total, industry (excluding power, water supply and construction) accounts for over 13% of GDP (see table 4) and presently employs about 70,000 workers or some 9% of the labor force. Between the mid-fifties and 1966 output increased at an estimated annual rate of 9.5%, probably some- what faster than the average growth of the economy. Growth was particularly rapid in the manufacture of metals, machinery and construction materials (close to 20% per year). 23. Exports of manufactured goods, although still relatively small, have been wrowing substantitally in recent years, nearly doubling from LL 50 million in 1964 to almost LL 100 million in 1967. There was a considerable increase in industrial exports after the June 1967 war: in 1968 these amounted to LL 135 million. This was to a large extent attributable to the subsidy of textile exnorts. Funds for this were derived from surcharges on selected import duties. 24. Protective devices for industry have gradually been instituted. Hiah diitipq and cunta. a pe nner.llv nnned by trap-rz fry fpn that. hr increasing prices or evoking retaliation, they might impair trade. The in- fluAncn of traaer is grnaally diminiah4no and dameatic industries are -o nerally protected through the tariff and/or by quotas. 25. Investments in Lebanon's 6,800 industrial establisments is estimated at about T. 1,000 n millirn 1/ nmna-rd to T.T. P0 mi llion invrmtoei r 000 establishments a decade ago. All enterprises are privately owned. 2/ The structur of induat- Is aich that about 9% (1110 out P 4 AM -00 +oxhe 4nu trial units account for 60% of industrial output and 35% of the total indus- trial1 Inh^v ferna "haaa lnvger unit are mnr mnhanaed and han a much higher rate of productivity per employee than the smaller plants. Average value added - m-lo-ea 4a about T.T. 100 4- a 1., ,-1"l+ m --4 +-- LL 6,400 in middle-sized units and LL 3,900 in small-sized units. This com- par-n faoanhlY w,4+ ol+hav. A".1h cain+-4n 1/ Including LL 333 mln (Dec. 1967) incommercial bank credits. 2/ Tobacco and silk are produced under a Government concession. -0- 26. About a dozen families control most of the large firms (defined as those with more than 50 employees) and there has been only limited scope for outside management and foreign investments. Foreign participation in industry is limited to petroleum refining and the production of plastics, fertilizers, aluminum, asbestos cement products, and a few other industries. The closed character of industry manifests itself in generally inadequate pre-investment and feasibility studies, cost accounting techniques and marketing. 27. The difficulty in obtaining long-term capital is a major obstacle for further development of industry. Resources of the only specialized bank are inadequate (see paragraph 53). Credits from the commercial banks only partly fill the credit requirements. Moreover, their short-term nature badly fits the needs of industry, as shown by the collapse of Intra Bank, which dis- continued LL 59 million of industrial credits, to be repaid at short notice. There is a stock-exchange, which is, however, inaccessible to newly estab- lished enterprises and which has experienced a badly diminishing volume of trade in existing stock. Construction 26. Prior to 1967 construction accounted for almost 6% of GDP. Data on construction activity are unreliable. Two indicators are widely used: con- struction permits issued in the four largest cities 1/ and cement consumption. Table 23 shows that these data and the data available on building in the en- tire country are inconsistent and do not allow a quantitative analysis of construction activity. Nevertheless it is clear that a boom period came to an end with the Intra Bank crisis of October 1966 which affected the construc- tion industry more than other sectors of the economy. Construction is often financed by bank overdrafts and after Intra Bank's failure (which in itself already discontinued several lines of credit) many banks were reluctant to renew existing or to extend new construction credits. The June 1967 war aggravated the difficulties. A general reluctance to spend (which affected the profitability of rental operations), and fear of loss of investments in real estate produced a further decline in construction activity. In ad- dition the deterioratina financial nosition of the Government has tended to delay public construction. The construction industry has not yet fully re- ecvred. At thp end of iQ68 ement consumntion was still more than 10 nprnpnt below its pre-October 1966 level. Construction orders on hand amounted to ahout T.T. 9no million, of wbinh T.T. 100 million abroad. This rPnrPqPnt th. equivalent of some 1,250,000 m2 apartment floor area in Lebanon which (consid- ering that it i.nclude t-nnQ+.-intAnn other than bhild3nvs) seems modestc+ in nnm- parison with previous output. 29. The industry is looking toward the Government for an increase in pubi c~ - rrsI, to' help 4+ J~rrrm +a *r.raon+ AJ-ef4,,ii1+4na. 'Pheo -tr uct+w,-An of the Tabarja-Tripoli highway and the airport may start in 1969. However, -1- A- ss ubsantia fees i. chargedf a construc n f p irrnt p4 1 A4 .114t.J F-. . ~ 4 . . 4. & - . - 4* '.- 1I I A 4 C %,, - . - ..llj4.4 - F - ± - 4.' - - fIA U~ V .LA160 1/ A substantial fee is charged for construction permits, so that probably most pemt willJ~ evnta WL..~~1l.Jy be uus.D~ will have to be further postponed until the Government's financial position has improved. A popular housing project, ready for implementatuon over a year ago, is being delayed and no early start is to be expected. Scarcity of 1unU also impedes the large-scale cOnstruCtion of needed chUool bulUdLgs. Thus, it seems that contractors specializing in buildings will be dependent on an Improvement in private demand. Transportation 30. The road system comprises 570 km of main highways (principally the coastal highway, the highway to Syria, and the North Bekaa highway), 1,4oc km of feeder roads and 4,500 km of local roads. Most of the system consists of 2-lane bitumen surfaced roads. The system is generally satisfactory but poor alignment, frequent level crossings, pedestrian and animal traffic, and inadequate markings restrict the capacity of many road sections. Traffic volume reaches 20,000 vehicles per day on Beirut's approaches and more than 8,000 vehicles per day on some major highways sections. The number of pri- vate passenger cars has been growing by 14% per annum since the mid-fifties and now stands at 125,000. There are 14,000 other motor vehicles. 31. The Government is giving high priority to the improvement of highways. Engineering of the final 55 km of the Beirut-Tripoli expressway has been completed and construction is expected to start in 1970. The Government has requested Bank assistance for this project, which will also include studies for other highways and maintenance equipment. The total cost of the project is expected to be around LL 190 million with a foreign exchange component of about 40%. Construction of the expressway to Syria is expected to begin after the completion of the Beirut-Tripoli expressway, now scheduled for 1973. Works on the Beirut-Tyr expressway might begin in the late seventies. 32. No development plan exists for roads other than the main highways. Such a plan is urgently needed for roads in Beirut. Other secondary roads are improved and expanded as the need arises and it may be expected that funds for this purpose (some LL 25 million/year) will become available from recurring revenues. 33. The railway system runs parallel to the highway network. It is old and expensive to run. It has been losing LL 10 million annually. Freight and passenger traffic has fluctuated for many years around 40 million ton km and 6 million passenger km respectively. Cement constitutes almost 50% of all freight carried and live animals, petroleum products and phosphates from Jordan make up another 35%. The Government is considering closing the narrow gauge line to Damascus. For the rest of the system (standard gauge) a LL 17.5 million modernization plan is contemplated, which might reduce but not elim- inate the deficit. Since after the completion of the Beirut-Tripoli highway, railway freight could be transported by road, consideration should be given to closing the railway altogether. This will reauire an agreement with Syria and a solution of employment problems. 34. Beirut is the major port. It is operated by a private company under a concession that expires in 1986. A third basin to redunp nnnaPRtion - .LIJ was recently completed. Apart from equipping the new basin for which financ- ing has been arranged, no substantial investments are necessary though a fourth basin may be required in due course. Saida and Tripoli are the termi- nal points for two pipelines from 9aulI Arabia and Iraq respectively. Oil shipments from Tripoli amount to 15 million tons per year and from Saida to 22 million tons. Pipeline and related duties total LL 50 million per annum. 35. Beirut airport is the major airport in the area. It presently runs a deficit of some LL 4 million per year, but by increasing fees 1/ the airport could become self supporting. A LL 150 million expansion pro- gram, which will enable the airport to receive supersonic and jumbo aircraft is in an advanced stage of preparation. The Bank has been requested to con- sider financing this project. Tourism 36. Around 1.4 million foreigners per year have entered Lebanon in recent years (see table 9). A 1966 survey indicated that some 80 percent of these come as tourists, the remainder being foreign residents and seasonal workers. Two major categories of tourists can be distinguished; Arabs and non-Arabs. The Arab tourists tend to spend less than the non-Arabs on a daily basis but they usually stay longer. Because of this and since they are more numerous, receipts from Arab tourists are much higher than from non-Arabs 2/. Moreover, average daily expenditure from Arabs other than Syrians and Jordanians, who often come for summer resorting in the cool mountains, is only little less than that of comparable non-Arab tourists, which, combined with an often prolonged stay, make it an important category of tourists. But the single group with largest expenditure are the Syrians, who (though spending less on a daily basis and staying usually for a rela- tively short time) accounted for 29 percent of total tourist expenditure in 1966 (see table 10). 37. After a decade of mixed performance, the tourist sector started its growth in 1961. From 1961 to 1966 increases in the number of foreign visitors averaged 23 Dercent per year. The war of July 1967 badly hit tourism, even though Lebanon did not participate in the hostilities. During the remainder of 1967 the number of visits from foreigners fell by q2 pproent (Syrians - 18%, other Arabs - 32%, and non-Arabs - 47%), as compared with the same period in 1966. In 1968 recovery set in: durina thp fi?f*. nina months the number of tourists practically equalled that in the same period of 1966 and total 1968 receints are estimated to h 1 npeont higher than in 1966. However, there has been an important shift from non-Arab to Arab tourists. While the number of western visitors still was 2A pernt lowe, the number of Arab tourists (except Syrians) was up 23 percent. The con- tinued dron in tourists from Ruronp and the United Rate Ja a n by the general Arab enmity versus some western countries in the wake of the war (which made cities like Cairo R miust fnr wes+.Arnava 4n +nr"a o- +V' X Idle East, practically inaccessible to them) and the fact that many places of 1/ A LL 10 passenger accommodation fee is to be instituted soon. 2/ In 1966, 72 percent of all tourists were Arabs, spending 63 percent of total expenditure of LL 278 million. - 11 - touristic interest (Jerusalem, Bethlehem) could no longer be reached through Beirut. The increase in Arab tourism stemmed from reluctance of many Arabs to vacation after the war in Western Europe, and instead they often chose to go to Lebanon. 38. By now, foreign tourist expenditure is equivalent to about 7% of GNP and 16 percent of the balance of payments' current receipts 1/. The Government, realizing that tourism had become one of the main dynamic sec- tors of the economy, has embarked on a promotional campaign. A international fair which is hoped to attract both tourists and businessmen, is under con- struction at Tripoli. It cannot be opened, however, before the completion of the expressway to Beirut, because lodging facilities in Tripoli are inadeauate. Therefore. fair participants and visitors will need to commute to Beirut. The Government also intends to develop the beaches south of Tyr. for which it has reauested Bank assistance. On the whole the Govern- ment has recently invested about LL 7 million per year in touristic projects (mostly the Tripoli fair). In addition. it has spent LL l4 million Der annum on promotional campaigns and administrative expenses. 39. Most investments in tourism are made from private funds. The nrnvi-ion of hotel and other lodaing facilities. restaurants- transnorta- tion and entertainment is generally adequately taken care of by the private sector and, exnt fn regulsatoxy action- there is no need for the Govern- ment to enter these fields. 40. The consequences of the Arab conflict with Israel is the largest hozard to the development f +iv4am. Pv4Ad that hea4+AC -an be curtailed in the area, the outlook is good. Next year promises to be a record year -for th. tour4st +An a, +houg +hI n"imbov -- Pa+ _ +nacia+" is likely to remain depressed. Utilities 41. Power generation has increased by 12% annually in recent years. T+ l - -A Amn 4- 10.7 'ki+ m S Al- A 4+. 0 U 4m T/ T-nAnann+a n ordination has led to overinvestment in power. The load factor is low and amont+d +0 orl- 070/ 4- 1047 W4+1, +he -cnlyco+1 mp 'ed o Mu Mpmean+ +t Joun coming into production and a 125 MW 3/ plant under construction at A submarine cable to Marseilles is being constructed at a cost of LL 50 I.L.Lon \.L.Lnanced.y Fr CtA J D Wloans as 0m DaklJAA1G aUastlecmmunicaUonD station, costing LL 6 million to be financed from US suppliers' credits. cy's own funds. 1/ Excluding non-monetary gold, grants and remittances. 2/ Production of Electricite' du Luban during Jan.-May 1968 was over 13% higher than in the same period of 1967. 3/ Extension by 250 MW is contemplated. - 12 - 4A. About Q2% of the nonulation in about 1300 towns and villazes receive piped water. Work is continuing on connecting the remaining 400 villRas to a watAr supnnv svtem. While the nroviRion of rural areas with water is progressing well, the supply system in Beirut leaves much to be rdired Rth the souren of nnly and the distribution network are Inade- quate. Four sources of water are under study and development of additional supplie (anonding on +.h alternatIve chnnon) mv ost T.. 25 - 60 million, The distribution network has insufficient capacity so that pressure is in- sufficien+ even +atean le l n part it+ 4a .1a^ nlA anA in npaa nf rPn1PPA_ ment. A contract for the design of a new network will be awarded soon. A very +n+.+4-- -.+4-.+- ^-, +ha ^no+ ^P 4mh=vi,, the netwok in T.T. 1or mil. lion. The pace of executing the works on both the new supplies and the di +s t r+4- on+twr,k -411 he se+ by +he aval41.h4 1 4+w ,-P -P4mn-- T-P 9m U.OS U".LJIJ Vl.W ± W.L,.L U' O . VjJ V-A aV .LiJ.L y -.l -AS A . -11 - ing has to come from the operating agency's own funds, execution will require (if no depreciation is taken into account) and it could further improve its .Linancial" position i1f the Government woulId permit rate increases, for wIchI there is ample scope. 44. There is also need for improvement both in garbage treatment and garbage disposal plant, as well as a sever network and a new sewerage treat- ment plant. The total capLtal iuvestment euvisaged is aUout UU LLU milion, but no financial arrangements have so far been made. IV. BNINGI~L,_ MONEYL JUND RICESL Banking 45. The Bank of Lebanon started operations in Aril 1964. It took over the note issue from the privately-owned Banque de Syrie et du Liban. The latter, by its nature. never exercised control over commercial banks. The Bank of Lebanon, after its establishment, continued the laissez-faire tradition toward the rest of the banking system. Lack of regulation and supervision resulted in October 1966 in the collapse of the largest Lebanese- owned bank. Intra Bank. The Government has since taken steps to restore confidence in the banks. Empowered by special legisation, it has taken over 10 banks of doubtful lInuidity and reimbursed in full its denonitors. These banks are managed by the Banque de Credit Agricole Industriel et Fonder (RCATF) The remainina banka are rearded as healthv To nnnrnl- date this situation, a system of guaranteeing deposits up to LL 30,000 has been imlemented beginning 1069, to be iintly finant-m hv ha +In.rna"nment and the commercial banks. The guarantee of deposits will be especially bene- fli-I -P-- T.ahamn h-"nka ihc neft mage cannot compete wi+h +h-e * ~~ ~ 1 .I1. M*Lb. * JC - - - - - local branches of large foreign banks. 46. After the reorganization of the banking sector, 74 commercial banks (of which 18 foreign) operate in Lebanon 1/. Deposits are concentrated 1/ In addition to the liquidation of 10 banks imposed and effected by the Government, 5 banks have decided to liquidate voluntarily and 4 banks have merged into 2. - 13 - in relatively few banks; the seven largest banks account for 55 percent of all deposits. 47. The Bank of Lebanon's assets consist largely of gold and foreign exchange (see table 11). Gold holdings have increased considerably in recent months, partly as a result of conversion of foreign exchange into gold to avoid devaluation losses and partly because of the improved balance of pay- ments position. Total foreign assets in the first half of 1968 increased from LL 865 million (of which 69 percent gold) to LL 990 million (of which 89 percent gold). Adequate foreign assets are the cornerstone of the free exchange rate system, which has substantially contributed to Lebanon's rela- tive prosperity. They are needed to assure continuity in the economy in case of emer2encv and to cover foreiga canital deposits denominated in Lebanese pounds. Therefore, these reserves should be considered adequate but not ex- nPRRTVP_ 48 Othpr anctpt% int-liip erPHitnPy rtpndta to r-nmmPrnia1 hnkp nfter the Intra Bank crisis. These credits have totalled LL 425 million; at the end of 1068 all. had 'han vanaa ent T.L 11A million PytAnAd tr the arn of 10 banks now being liquidated by the Government. 49. Following the Intra Bank collapse in October 1966, deposits with commea-1a ha"nka Arrnned hK-t T.T. AR9 millirm I1A "a-rean+tl wbinli 'ha ne% 'hean regained by the time the war broke out. The immediate effect of the war was a xrther drop in Apo4+o T.T. 271 m4ll4in (8 Apcving +he follo- ing 10 weeks. By July 1968 deposits had largely recovered from the war 'Iosesn kn+- 4 n-s ^-P -------r P-m +hn losae +h a TbT+-a Ban, fa4T n are noticeable. It should be remembered that the decline in deposits after Bank, which have been excluded from the statistics. The table below summar- Private Deposits with Commercial Banks I TT -4114-- --a A -P ---+V, X.AJ"J U"1L.A..I. J44 - W J. 1 .J& Sep. Nov. May Aug. July 1966 1966 1967 1967 1968 Demand deposits 1,026 895 861 760 890 Time and foreign currency deposits 2,175 1,835 1,862 1,699 1,991 Foreign liabilities 1 816 813 803 567 Total 3,546 3.536 3448 Source: International Financial Statistics. - 14 - 50. Deposits (now amounting to over LL 3,400 million) are for a sub- stantial amount made by citizens of other Arab countries, particularly from Syria. Iraq and the Arab oil states. These deposits are partly denominated in foreign currencies. Moreover, many Lebanese hold foreign currency de- posits. Total foreian currency deposits make up roughly 50 percent of all deposits. 51. Banks are by law required to make reinvestments in the currency in which the denosits are made. Because of limited possibilities of foreign currency investment within Lebanon, most foreign currency deposits are re- invented oiitqide T.ehanon. End iQ67- Investments of nommernial banks were made for 37 percent or LL 1,317 million outside Lebanon while investments within the connt- nmonunted +n T.T. P-7 million (ne +tble 1P) RnmA Lebanese feel that the funds now channeled abroad should be invested within Lebanon. However, this i. not compat4hle with the cuntry'a finction no a regional banking center and attempts to realize this (supposing legal re- a4t4rtna wew 14f+A) ,m4ght dvav+ hoth forn anka aank -and 4fvaa+-e ors away from Lebanon. 52. The commercial banks possess the foreign exchange to repay foreign currenc deposits. However, they alsn havp nn-rPQJaPnt anmJae dnom4 nated in Lebanese pounds. 1/ Repatriation of these deposits and capital mnwmen+a fr.hann o-n -anAa +o n+h rne-ann4 es by rea4dnn+ s +h Thana and foreign) may draw on the foreign exchange reserves of the Central Bank. 53. Commercial banks are the principal source of credit in Lebanon (see table 12) The only othr credi+ naf4+vi4-n4a RATP 9/ t-- +(kse T In the absence of consistent growth of deposits available for domestic lend- ing --mbank- credit has not exane -since-A_4_ 1965, --1--I- - ± a..1. quickly recovered from the drop in outstanding credits as a result of the .L- L a. LO. L ~ L.a±A. % ,LU1~LL .LO.L " . I.U.ZL ;U.. L..L La04 .JL "CL~L UU L U.V short-term but they are often kept revolving and thus provide long-term finaiug. CommerciaLOaar- u crdi t-enliso Lcuen c e us JhuL rnIcua u .ne traue auu service sectors. BCAIF, intended to be a principal source of long-term credit fur agriculture, construction and industry, has only very lmiteU means. Lending during 1966/67 averaged LL 6 million per year in new credit. The scarcity of funds, long-term funds in particular, is now becoming a major obstacle for development. Plans for a development bank have existed for a long time, but difficulties with respect to ownership, the provision or capi- tal and the general structure of private development financing have prevented its establishment. 1/ The amount of these deposits is not known. Considering that one might exnect resident denosits in a country like Lebanon not to exceed 40 percent of GNP, that total deposits in July 1968 were approximately eaual to 100 nercent of a GNP of LL 3.500 million/year. and that foreign currency deposits invested abroad then amounted to about LL 1,400 million the total amount of these denosits might be nuite suhtantial 2/ Tn addition the Plan Vert and the Fruit Office Ptend limitd mni nf agricultural credit through BCAIF. - 15 - Money and Prices 54. Monetary authorities and the Government have followed prudent financial policies and money supply increased from 1951 until September 1966 by about 9 percent per year, not much higher (if at all) than the growth in GNP. As a result of this, and because of the unrestricted availability of foreign exchange, price increases have been moderate. In the early fifties prices actually declined. Subsequently, prices have risen somewhat although they generally have not risen more than 1-2 percent per annum, according to the index of wolesale prices (see table 14). 55. In the weeks following the Intra Bank failure, the currency supply rose by LL 70 million (12 Dercent) as a result of conversion of bank deposits into cash. Total money supply, however, fell by LL 61 million (4 percent) as demand deDosits with Intra Bank could no longer be freely disposed of. The contraction in money supply was noticeable until the June 1967 war, when further conversion of demand and savings deposits into cash increased circu- lation of bank notes by LL 156 million (22 percent) and total money supply by LL 86 million (5 nercent). The denosits withdrawn following the June 1967 war have largely returned to the banks. This initially resulted in a drop in money sunolv but early 1968 it resumed its unward movement reflecting the improvement in economic activity. Mid-1968 it has risen well above the pre- Intra Bank ltvi-l. V. FOREIGN TRADE AND BALANCE OF PAYMENTS r6 T.aLanon has +aditionn11v avniavisaned aniderahl +ade defIci+ From 1962 the deficit has increased by some 11.5 percent per year reaching T-T I ThO mil4114 4- 109A (n-- +n1,1- 1r) r n4_ IOA7 -rm-"+. rose hby n w - - - - - -.La '.Ll 2.~ -, /'&% -t~ -- .k-15 - I , --y -~J.J -- - -Q.7 30 percent (as a result of increased export opportunities to other Arab coun- +w4.1± fw 41L Lr4m + I--ll-----* +I- A--- 4- dmestAic+4 m m a P-11 0 TA percent. Consequently the 1967 trade deficit decreased to LL 925 million. The pattern of trade naas not canged much I,r he po+ Pes yar EuNo (the Common Market and the United Kingdom in particular) and the USA account About 60 percent of all exports, consisting primarily of agricultural products, go +0 +he Arn ab mma counrie IKn 1 -4m 171 Z%. 'LA~.IL V. Vb4 .L .L .bD I. C I.._ b A' J .11%. S IAUVJ_qZO C 4.ia.&C; W-.LJ Vb.L% .J1 JW .OUU..LD CU" IV = UC) on most other articles of consumption, while the maximum rate on luxury 6bJ.A~ L~ IV k, 9. b~tU Vr~ AU..rL c M LA'.J lJVA& . "AiJ)UVO LV b.L .LLLAOti C.~y aLLIUC I. culture as well as hotel equipment are exempt from duty. Domestically pro- "u1 LC U " ,, M6 J U.l 4, " O.LI C611U 111 " 140 U.L .LC" P %J%A UJIL; Va 0 ML 1=&C C"J.LC Y O.LL'PLUVVI. I.CU VY duties and/or licensing. Export subsidies are not generally given. 1/ Ubanoun is nUt a member uf -tne mr CUmmon UU L a nUUUt:1 U1 Uo_Let:XML trade agreements have been negotiated with individual Arab countries. 1/ In 1967 and 1968 exports of cotton textiles were subsidized. Funds for this purpose were obtained by imposing a surcharge on selected duties. - 16 - 58. The trade deficit is largely covered by earnings from services. Earning from tourism (1966: LL 275 million and approximately LL 300 million in 1968) now is a major source of foreign exchange (see also paragraphs 37- 41). Net transportation earnings (consisting largely of receipts by domes- tic airlines and LL 70 million in expenditure by oil companies) fluctuate around LL 160 million. While the estimates regarding tourism and transpor- tation have been made in a more or less consistent way, a major change was made in estimating investment income for 1966, resulting in a higher level of recorded earnings (LL 262 million in 1966 against LL 175 million in 1965). Net receipts from Government and international institutions amounted to LL 97 million in 1966. Miscellaneous services in 1966 contained LL 129 mil- lion in earnings from transit, triangular and entrepot trade. 59. The deficit on the current account (1966: LL 344 million) is nartlv financed by remittances from Lebanese livina abroad. These remit- tances consist both of transfers for the support of relatives and of capital remittances. For 1Q66 an attempt has been made to estimate these two cate- gories separately and a sample survey was made to determine the nature and amount of the remittances. It showed that 82 nercent of the remittances represent capital investments (LL 550 million in 1966) and only 18 percent (about LL 126 million in 1966) consisted of transfers for the support of the recipients. The latter remittances are partly offset by payments sent to qv-rix (T.T. '8 million in 10f6) by mnmp 100000 wnrkerq who wrk in contru- tion and agriculture. 60. While the current account of the balance of payments probably correctly reflects the order of manitude of the verionS itemn in -rantion to each other, 1/ private capital movements may not be correctly represented. Thus the mnn+c na arecorded in the balance of payments should be inter preted with caution. The capital remittances from Lebanese working abroad have both a shortte., (bDhank dnnae4+a A n 1tr e.+ ma The la++er and other long-term private capital enters the country because of partici- p+ion in e+nnioe a-, 4uno+vtmn+ in raal es++ ( apawa+man+s hnes hotels, etc.). Short-term private capital inflows reflect mostly deposits tr4+h co,,erci-l kOutf An or.s m anoit e4+ahe ao re4hA-a.l,71 investment of foreign currency deposits outside the country by commercial account deficit of LL 344 million was financed by LL 69 million in net grants, by LL 78 million in long-term privat Tatl, by -. 12 million in long-term public capital and by LL 185 million of other capital. The latter amount z ~ ~ ~ e . - _ _ _Ir__ _ _ _ _ fIT nOn - II --N - _ I __ _- plus the IIcre: LuIueign elxuuAL 6c -eeE -C5 mfl±dIliol/ ,ould repre- sent the long-term capital component of capital remittances by Lebanese living abroad plus private short-term foreign capital deposited in accounts, denominated in Lebanese pounds. 1/ Nevertheless, in absolute terms the items in the current account may also contain considerable errors. - 17 - VI. PUBLIC SECTOR Finance 62. Government expenditure exceeded revenue for the first time in 1962 as a result of an effort, initiated around 1960, to increase development spending. The financial position at that time was favorable. Accumulated reserves of previous years amounted to LL 271 million. Both expenditure and revenue have increased since then and the deficit has fluctuated around LL 40 million per year. The deficits have been covered by drawings on the reserve fund, which was almost depleted at the end of 1968. The Government has also obtained a budget support loan of LL 42 million from the Government of Kuwait, which it has almost completely utilized. (See tables 18 and 19). 63. The 1969 budget is balanced at LL 587 million. However, supple-- mentarv outlays have been reauested for 1969. A law providing for LL 25 million in salary increases for civil servants with supporting revenue meas- ures as vell aR a unnlementary budwet for LL 80 million have been introduced to Parliament. Moreover, the financing of the expressway to Tripoli will be the suhjet of a sparate law whinh may innmage Government exnenditure in 1969 by some LL 30 million. 64. There are 26 autonomous agencies, which (with the exception of ',he Office de !a Reconstruction and to some extent elsto the fffi ce dui Develople- ment Social) run a generally well-defined utility or service. Total expendi- +e cmiin+g, +o TT. 9A r41llI%n r about ononaiarter of totnl n%lin qpn.Itor expenditure. As a group, their income from operations falls short of their crren+ n JA4+- ha .H 0vr V a l-----h n fa agannipa particularly the Office des Chemins de Fer, the Office du Developpement Soc±aland toa lni. -~- the n1 ste Libwmi~se th-e Off ice des Recherches Scientifiques Agricoles and the Office Fruitier. Moreover, the fP4can in lanFle+rn+4 -+abl--hnA af+n +h 1016 nw+hneve t ,anrn struct the distressed areas, has large expenditures which are not financed by income from o-eat4lna hut hv sal tax levies- For the roat thp Pan- cies by an large finance their own operations although the Office du Litai still requires asS4-tan to finance its i4nvstment porm. In T- me4 4 the figures for the autonomous agencies contained in tables 20 and 21, it A um eMODmerkedI h1.+ +t + '16a e.+,me (n+h +wmt e+e4 4-n+1 +h rural electrification network of the Electricite du Liban and probably other ..-. -...11 I awnkno. manmkn 4',s. annan.4n+ t1 +ka A!n.n.s,.,m+ .,b, aP+n,. works ao wel, ILy rue c v u %4.o U0 .4. -VA A.4Sa brA a ccouyt of 4MeGoe.Am.n who, afvex completion, transferred them free of charge to the various agencies. 65. The Autonomous Agencies have reserve funds of their own, which in Ulle aggegate~ amunut to probaDjJ 0.V=4L ~Ail. V WL..LLL1.,LI~/u4il istration du Tele'phone and the Electricite du Liban have sizable reserve funds from which they plan to finan"kC hi uueivsmns 66. Beirut Municipality spent LL 77 million in 17 (or aout 9 0 public sector expenditure) of which LL 28 million for investment. It derives its income from municipal taxes, surcharges on State taxes and a variety of - 18 - other sources. Revenues have been affected by the aeneral decline of the economy. The budget for 1968 is LL 68 million or L 9 million lower than in the nrevious year. The decline will in narticular reduce investment expendi- ture. Outlays on major projects are budgeted to decline from LL 28 million in 1Q67 to LL 7 million. Current exnenditure on the contrary are likelv to rise further by LL 12 million, rising to LL 61 million in 1968 (see table 22)- RAvAnup and nenditure of other Munieinalitian are not available. They amount to only a fraction of the outlays of Beirut Municipality. 67. The Government, most Autonomous Agencies, 1/ and some other finan- Cin11 4nAanA n+ +4a 1/ hnv t%halr4v- mneeminfa v4th the Tv- aaiiur and 4t is there that the tight financial position of the public sector becomes ap- parn+ r -n-a--a+ A4+nu4+ +,h +hP fan nf Tlennn r nna4at4n- lo.alr af Treasury funds) have developed as follows: Dec. 1964: LL 276 million Dec. 1967: LL 209 million Tr n4n _jii TT 4.. -1 - el,< T A. TT 17C -4114on V c. .L7LIP on epL "AJ1L..LLJL*.7'' 1J .1 JLLA..L.L~ Dec. 1966: LL 308 million (Source: IFS) The decline has materialized in spite of the issue of LL 75 million of 3-year TreasuryL bonds~ in, 17g and l7168. T-A -'.V.4+J-- -4-4-~ 'JV~L ment projects have been compensated in Treasury bonds which they have redis- counted W.Lwi Dklt.Lr F Ulle amSJoLut 01 IUU I~LAZ isue iJ not avilaJ1e Ve third of the first issue of Treasury bonds of LL 40 million matured on VC-LLUCe JI, L>FUU; Uone-tuir Ur o 80 t Uhe UH seco dD I UALJ. 3) M"L_LiAU" WA.A UMau;OtC on June 30, 1969. 68. A major cause of the decline in cash balances are the large amounts of advances the Treasury has maue tou a varitcy U Uneficiarie as weLl as the use of Treasury funds to compensate depositors of banks taken over by the Government. At tne enu dIf 1y01 U± *41 mlillon /k LyUo 00 LL-436 million, in advances was outstanding. To a large extent the advances consist in interest- free long-term loans which cannot be recuperated in ne near future. Major debtors in this category are the Office du Litani (LL 151 million) and the Conseil Executif des Grands Projets (LL 79 million). The compensation of the Intra Bank depositors was financed by a Treasury advance of LL 47 million, which is unlikely to be repaid soon. The reorganization of the rest or the banking sector may require substantial additional outlays by the Treasury funds, of which LL 25 million may never be recovered. 69. The deteriorating Treasury position is hampering development and disrupting established financial practices. Accelerated repayment of Treasury advances is enforced, where possible, which in the case of the Office des Eaux de Beyrouth drained its reserve fund intended for financing the overhaul of its distribution system. The transfer of LL 30 million in surcharge taxes col- lected by the Government on behalf of Beirut Municipality has been delayed. 11 du Lib44+a T. nd the mtu,nicipalities do no+ kea +he4 . in the Treasury but have separate accounts with the Bank of Lebanon. - 19 - In general, no major project can be initiated before additional revenues or other finance has been found. TO. With careful management, there is ample room for improvement in the public sector's financial position. To secure adequate revenues for the public sector and to assure their optimal use, a number of reforms are needed. First, the Government could increase domestic revenue. With pres- ent rates, tax revenue could be substantially increased by better enforcing collections, especially of income taxes. In 1966 income taxes (including corporate taxes) amounted to less than 2% and total taxation to about 11% of GNP. Although the Government is trying to improve collections, a much more rigorous application of present tax laws is required to bring about a significant increase in tax revenues in the near future. Furthermore, there is scope for a re-evaluation 1/ of the tax structure. This could lead to a more eauitable distribution of the tax burden and probably also to higher revenues. Also fees and rates could be increased in many cases. A passen- ger accommodation fee at the airport is soon to be instituted and with an increase in landing and other fees, the airport might become self-supporting. Water rates could be increased to accumulate funds for future imnrovements and expansions. A variety of other fees (irrigation charges, bus fees) which are excessively low at nresent could nrovide additional revenues. Monetary reserves are for the greater part not yielding revenue. 71. Second, the Government can curtail ordinary expenditure. Total Government A3rnPnditure rose by 7 ner year during 1062-1067 and administra- tive expenditure at least matched the increase. Although the increase in Government ativitit may he ornPted to he aconmnanied hv am intramo in administrative expenditure, opportunities exist for increasing efficiency in Government. The f-nure of the railunyunild also reduce ordInary =xnndi. ture. Past efforts to curtail administrative expenditure have met with litte SuCCess and more strict limits may be required. 72. hird t-he Go'.------- 4- cou'd1 reonsider Its' 4--1va1 +4-nge .4+1, +I-0 Autonomous Agencies and other public sector institutions. With respect to Government account and transferring them without charge distorts the finan.- resu ,oalt 4-f t.4 e Ageancy cnce.r..ned aid prl aces a bun orin the Gv fnr.emnu It would place relations on a sounder footing if the Government charged the books and charge its customers rates including at least an amortization coma- largely lost their specialized character. Since it draws on taxes, that werLA +%A. a UAL %w01 l UIL +ke considered JA -to a - -JA -A A W4.I.JI. U4M VMGWAD0 UC a OYGAAQUJ.G MU UL1 'JIVV.LHmcHUg1 AU WA~I1uk LC LLUbUDARLFL UU transfer its activities to the Government. Finally, the custom of extending Treasury loans to agencies that4 still1 have a poiiebaac -n hi e serve fund obscures the financial structure of the public sector. An inter- est chrg fvo Tresur lon wu"'I larly preven 46~Y LI.L CIW A. 1/ The Ford Foundation provides technical assistance for the reorganization of the tax system. Its sueess will be determined by the willingness of the Government to implement its recommendations. - 20 - 73. Fourth, throughout the public sector there is scope for an improve- ment in administrative practices. In particular, public agencies (even those operating extensive fixed assets) do not maintain balance sheets with real- istic valuations and as a result depreciation is not adequately taken care of. Government administration continues to be done mannually in spite of the acquisition of a computer. Mechanization, if properly done, could greatly increase the efficiency of Government and allow a better tax administration. Together with budgetary reforms (in particular a separation of administrative and capital expenditure) it would enable a better control on expenditure. It would also enable the Government to have an up-to-date consolidated review of the financial position of the entire public sector which is now lacking. Planning 74. So far no comprehensive attempt has been made to set investment priorities against the background of the resources available to the economy. The Ministry of Planning prepared a plan for 1965-1969, which is confined to the Government and excludes the Autonomous Agencies, the Municipalities as well as the private sector. The plan calls for investment of LL 1.080 million during the five years (see table 24). During 1965 LL 142 million 1/ was spent on plan projects and in 1966 approximately the same amount. In 1967 outlays on plan projects dropped considerably as a result of emergency expenditure and a reduction in Government revenue. In 1968. development expenditure has largely regained but probably not exceeded the 1965/1966 level. The shortfalls have occurred in all sectors of the plan but especi- ally in social projects as popular housing and health care. By the end of the plan period total development outlays during 1965-1969 will probably be of the order of LL 650 million or about 60% of plan allocations. Until 1967, the availability of adeauatelv nrenared nrolects has been the effective con- straint on development spending. Since then several major projects have beom rpady for implementation and nresently it ia the availability of fi- nance that determines the level of development expenditure. 75. Although it cannot be contended that there have been large-scale misallocations of p14rc funds s t cannot he aniA that they are hine mnant in an optimal way either. Too much has been invested in power as a result o-P lack of coorina4tin hetween +he Electriita e3ii TAhan +he Office d Litani and also the private sector. Investments in the Tripoli fair will remain idefor several yeaers because of -1arnk of matching infrastructure. The optimal use of the Litani water resources is not assured. The railway continues to be h,,1-4 A4 .,A P- -ha humaff+ +. a - rPwr .n -- I I Little attention has been given to education and rural health care. These public sector agencies. In particular, the Government could usefully exer- cies. The 1970-1974 development plan will cover the entire public sector. lteo figures on the implementation of the plan are availa5l.r yearu later than 1965). - 21 - 76. Increased attention could also be given to planning in some other respects. There is scope for improvement in physical planning. Especially the location of the Jieh power plant does not seem well chosen. An improve- ment in urban planning would be beneficial to tourism. Finally, except for the Plan Vert and a law providing incentives for new industries, the Govern- ment has no instruments to steer private sector investment. VII. PROSPECTS 77. Prospects for the country are linked to political developments in the area. Continued growth will require more Government guidance than during the years preceding the banking crisis and the June 1967 war. After the con- siderable effort put into the reorganization of the banking system, attention should be given to assisting those sectors that offer growth prospects, namely tourism, industry, agriculture and also social sectors, especially education. 78. There are possibilities of further improving agriculture, but if farm incomes are to be increased there is little scope for increasing the agricultural labor force. Available land can still be more intensively used through irrigation and a shift to hiah value crops and animal husbandry, and there is room for the establishment of agriculture-based industries. 79. Tourism continues to offer good prospects and (if peace can be maintained) may grow faster than the economy as a whole. There is also scope for expansion in industry, both by developing existing family owned enternrines or y dApviRinj new linps of nrndu.t., mannement forms and wavr of financing. Some activities, which were in the forefront of the expansion in the erlv pAytiA are likely i c1pe-linp in imnrrtnn-P ThuQ hnkinc may have passed its peak and is unlikely to grow further. Traditional inter- national tvaing artvty has aaed +n be a n Aincm4t lment mn the aecnnom and will not provide a basis for further expansion. Construction may not recover ful1v of the Misruntions naund hv the Arah-TqraPli %nnflint for some time. In total, the outlook is for a resumption of economic growth in 1969, thoah at a lower rate (perhann 5 or 6n .A in the nPwt few vpnra) thn prior to 1966. 80. The efforts of the Government to increase tax revenues are unlikely to relieve its tght fInancIal nrnitisn in the ahort run. In ordr to execute its development program, the Government will have to borrow for some time to come- but even when wufficient finance wwer avalale BAvtlrpment an ysin may not exceed some LL 220 million per year (the approximate level under the 1ag;10ra ml1" 4n +hr'aan I aao trA+ '* h-oQ^1nc' _P A=l1-0 4- -w 4-a - ------- -- ~ ~ ~ ~ - l bec us - 'r- . -- - - - - - ----- *s - J Y-. jJ.j - tion. Borrowing requirements may be of the order LL 50 - 100 million per year during the next few years. fI f private savoin vstupments i, thed pa cmae ta bak credtst b financed from private savings, supplemented by commercial bank credits. C.:nce theA eniU oJ± In741 JAIUZ. -I.0 UO.f -14- -&-.. UO U. UI .LJ 1UJ L-V h - *DO - increased and, if the stagnation in banking persists, may not increase for some years to come. 82. Exnorts may be exnected to continue their unward trend. Industrial exports may increase substantially in the near future but may taper off as nreently unused cAanfitv in fullv utilized. With renent to servies, earn- ings from tourism and probably also transportation may continue to rise. Anart from investment innme pavments- no maor chanae are to he PynPnted in other invisibles. In total the deficit on the current account could be of the same order of mantud during the next few varsa on the recent past. Unless there are unexpected changes in the sources which have financed the deficit sof-r (pVenumably moQtlyo ne-+tampvat=a o4+nl) anA bavr4nm prolonged disturbances in the area, Lebanon's external payments position should n+ man+ mt4 pr. ,sn.nhma- 4- +hon,. Pn+n.n Nownw+halone +ha" 4 likely to be scope for some external borrowing by the Government to finance developmen+ impor+s P-- 44k1 4+ -oum - m ----4-a 4N,-A- a+4nT W-o )UAkM DGUmo W"UD L. G&Aj tV D VA G DuL U%UL.L%,.LVLA- L URL CAlt e m ,U nal debt. Service on existing debt amounted in 1968 to about LL 17 million or Less than 1 percent of exports of goods and services (see tabile ). Even if the Government would borrow LL 75 million in conventional terms dur- Zng eachk of the years- T K n 17 A-6A-,--- A- 17 ..T --L.L .LA L ULH JC .D W7 VV J.71, % .L=U D1U.LV4%;1= LUA L7.jJ WUULUA P1IUUMU.LJ amount to some 2-3% of exports of goods and services. 84. The authorities place great value on monetary stability. Though confruueU by a tight budgeary poUUiin, iU may Ue expecteU that they wll" maintain responsible financial policies. Therefore, and because of the country's sat6isfcoury CAernal payments poutlounu dU te low pubilc debT service obligations, Lebanon should be considered creditworthy for Bank loans. STATISTICAL APPENDIX Table External public debt outstarndi.ng 1 and la Estimated future service nayients on external debt 2, 2a and 2b Labor force by sector of emplovment in 1960 3 Comnosition of GDP and GNP . Resources available to the economy and their use Production of nrincipal agricultural nroducts 6 ilaior irrigation nrojects 7 Sert.oral compnnsition nf industry in 196h 8 Mhber of foreigrn visitors and region of orign 9 Analyis of nuiriqm in 1066 10 Assets and liabilities ofthe Bank, o-f' Lebann 11 Assets and liabilities of the commercial banks 12 Assets and liaiitesof PCAIF I oetar statis ts exngenrates and wh,ro"lesale price indices 1h -Ralance of payments 15 Composition of foreign trade 16 Regional distribution of foreign trade 17 Central Government revenues 18 Central Government expenditure by Ministry 19 Revenue and expenditure of the Autonomous Agencies 20 Details of revenue and exnenditure of sOme major A,,+onomous Agencies 2 iRlevenue andl ex-lpendiuA--ure of Beirut Mu11nici!pality 2 Miscellaneous statistics 23 Planned develonment exenditure during 1965-1969 and implementation during 1965 2L Projections for the current account of the balance of navments and the debt service ratio 25 Table 1 ExternnT Public Debt Outstanding as of December 31, 1967 1/ (thousad oU.S. dollars) Debht ot-mstandi ng December 31, 1967 Disbursed including only undisbursed TOTAL EXTERNAL PUBLIC DEBT 50,887 92,065 Suppliers - France - 20,458 Loans from international organizations - IBRD 22,344 22,344 Loans from governments 28,543 49,264 rance - 5,o4 Kuwait 2/ 28,543 32,200 United "tates - 12,uu Note: Reported additions january 1 - August 23, 1968 are shown separately on Tables la and 2a; service on total outstanding including additions is shown in Table 2b. 1/ Debt with an original or extended maturity of one year or more and repayable in foreign currency. 2/ Includes a 86.7 million loan from the Kuwait Fund for Arab Economic Development on which $3.7 million had been disbursed as of December 31, 1967. Source: Statistical Services Division; Economics Department. Table la Reported Additions to External Public Debt Contracted January 1 - August 23, 1968 1/ (thonsands of U.S. dollars) Reported madd+iton Source January 1- TOT. nREPRTn AnnDITA N Ann repayable in foreign currency. Source: Statistical Services Division; Economics Department. Table 2 Estimated Future Service Payments on External Public Debt 1/ 0utstandin? Including Undijlured An f T)ember 31, 1967 (thousands of U.S. dollars) Page 1 Debt outstanding ULi Ui L, U u~ uc UL.L 1 at the beginning of tIbhe year, including Payments during year Year tjuLL.beu ulizti.L Interest Total Toutal external puli deb 1969 55,408 h,945 2,408 7,353 97o l0, V63 r',9 9' '2 1 '7'7 '7 .'76 1971 45,16h 6,230 1,914 8,144 i 7 Q ,3. ,7 ,6 3 7 ,.n2 1973 33,139 3,656 1,382 5,038 I -i r,i. nin L.Q, - '7-n I nniønl. -97, 2 9L 3,I7 ,2,98LL 1975 25,723 3,866 1,064 h,929 97 21,n5 8 3 ,979å 89I ,87'7 -L7(u -L,U9 )7(7 0u'- 4ýUft 1977 17,879 4,095 728 4,822 197i 378 ,2 nn 14,78,r 1979 9,553 3,950 369 .4,319 nQn r '-n IL - ,-å OI / 190 ,603 3,1 203 3,8c66 1981 1,960 1,400 67 1,467 1982 60 60 11 571 Note: Includes service on all debt listed in Table i prepared January 2, 1969 with the exception of the following for which repayment terms are not available: Suppliers - France $20,h5,000 Loans from governments: France 5,064,000 United States 7,900,000 $33,422,000 1/ Repayable in foreign currency. Table 2, continued (thousands of U.S. dollars) Page 2 Debt outstanding at the beginning of the year, including Payments during year Year undisbursed Amortization Interest Total Loans from international organizations-IBRD 1968 2254A 15276 1.0)7 2.323 1969 21,068 1,339 985 2,32L 1970 19,729 1Q02 921 25323 1971 18,327 1,471 853 2,32h 1972 16,856 10Ch2 782 2532L 1973 15,314 1,615 709 2,324 107. 13 AQ9 1 AQ 630 2,323 1975 12,006 1,774 0L9 2,323 1976 10232 1)859 hAh 2 023 1977 8,373 1,947 375 2,322 1c7F A 6 2 ,L2 282 2,3 2 1979 h,38L 2,11 183 2,324 190 2,20 2,2L0 80 2,323 Loans from governments 1968 36,300 1,960 1,219 3,179 10A0 0, 340 AA 1 ,42 c' noo 1970 30,734 3,897 1,256 5,153 1071 2A A7 4 75o 1 rAl 5,8n 1972 22,078 4,253 851 5,105 1973 17 2,0 ' AL1 673 2,71L 1974 15,784 2,066 59 2,661 1976 11,626 2,120 434 2,55b 1978 7,358 2,190 270 2,460 1980 3,360 1,400 123 1,23 1982 ,60 Q60 11 157 1982 560 560 11 571 Tah1e 9- cntinued (+ Wa0-ands of TT. dol1ars) Page 3 Debt outstanding of the year, inudng Payments during vear Year undisbursed Amortization Interest Total Loans from governments Kuwait 1968 32,200 1,960 1,148 3,108 1970 28,000 2,531 1,083 3,614 19(1 25,7 3,)71 74 435 1972 22,078 4,253 851 5,105 1974 15,78h 2,066 594 2,661 1975 13,717 2,092 51 2,606 1976 11,626 2,120 434 2,50 1977 9,506 2,148 353 2,500 1978 7,358 2,190 270 2,460 1979 5,169 1,809 186 1,995 1980 3,360 1,400 123 1,523 1981 1,960 1,LOO 67 1,467 1982 560 560 11 571 United States 1968 4,100 -72 72 1969 b,100 1,366 268 1,634 1970 2,734 1,366 173 1,539 1971 1,368 1,368 77 1,h5 Source: Statistical ervices Division; Economics Department.  Table 2a Estinated Future Service Payments on Reported Additions 1/ to External Public Debt Contracted January 1 - August 23, 1968 Pag~e 1 Debt outstanding at the beginning of the year, i~ncludri ng Pamet dur-in year Year undisbursed Amortization Interest Total Total external public debt 1968 1970 2,800 57 57 1971 2,800 156 90 25 1972 2,644 311 90 hOl 1973 2,333 311 79 390 197L 2,022 311 68 379 1Q75 1 711 311 57 368 1976 1,400 311 46 357 1077 1 RO 1978 778 311 25 336 10,10 1. 67 311 l. ,' .141.Jj _'>L-LU 1980 156 156 3 158 Note: Includes service on all debt listed in Table la, prepared January 2, 1/ Repayable in foreign currency. Table 2a, continued (thousands of U.S. dollars) Page 2 ebt oukstuanding at the beginning of thie year, including Payments during year £ear undisbursed Ajri Lkjtizatio n LIL VW eest T ot 1K1UWait Fund for Arab ECIonomic Development 1969 2,800 - 25 25 197n 2 -n -'7 r-7 _L iu _UUU 31 3! 1971 2,800 156 90 245 1972 2,64 31 91 nn01 1973 2,333 311 79 390 197 2,022 311 68 379 1975 1,711 311 57 368 97 L,LlkU 3)1j6 37 1977 1,089 311 35 347 1973 778 311 2$ 336 1979 467 311 14 325 1980 196 156 3 Source: Statistical Services Division; Economics Department. ICLU.e CU Lstimatled vuure aerVLCt! rtLymt:LL, U11 ZlJLUt11'1c rLUL)JJ- LjfLL -L/ Outstanding Including Undisbursed as of December 31, 1967 with Additions Contracted January 1 - Augusu 2, 17u (thousands of U.S. dollars) Debt outstanding at th beginning of the year, including Pa-ments during year Year undisbursed Amortization interest Total Total external public debt 19068 58,6hW4 3,236 2,266 5,,502 1969 58,208 1,945 2,433 7,378 1970 53,263 5,299 2,234 7,533 1971 7,964 6,385 2,004 8,390 1972 L1,578 6,106 1,723 7,830 1973 35,472 3,967 1,461 5,428 1974 31,505 4,071 1,292 5,363 1975 27,434 h,177 1,121 5,298 1976 23,258 4,290 945 5,234 1977 18,968 4,4o6 763 5,169 1976 14,562 4,53 577 5,120 1979 10,019 4,261 383 4,644 1980 5,759 3,799 206 o,004 1981 1,960 1,00 67 1,667 1982 560 560 11 571 Note: Includes service on all debt listed in Tables 1 and la prepared January 2, 1969 with the exception of the following for which repayment terms are not available: Outstanding including undisbursed as of December 31, 1967 Total $33,422,000 Suppliers - France 20,458,000 Loans from governments 12,964,000 France 5,064,000 United States 7,900,000 1/ Debt repayable in foreign currency. Source: Statistical Services Division; Economics Department.  M .U±n J'ttuur r.vrutl y.~~L Z11.ji.U11viuii. Lit J_7UV Sector INmmuern. Agriculture 300,000 49 Industry (5 workers or more per establishment) )0,000 7 Industry (less than 5 workers per establishment) 20,000 3 Building and construction 20,000 3 Trade, banking and services 1)3,000 25 Transport 30,000 5 Government 17,000 3 Armed Forces 10,000 2 Unemployed. 20,000 3 TOTAL 610,000 100 Source: American University of Beirut Table h Comosition of GDP and ONP (millions of Lebanese pounds) percent average 196h 1965 1966 196)/66 Agriculture and animal husbandry 381.0 409.2 hl.7 11.6 Energy and water 69. 77.8 R? 2.2 Industry and handicrafts 4l0.6 h62. - 511.9 13.1 Construction 17RA 200. 231.2 5.8 Transport and communications 258.2 290.8 309.5 8.1 Ownership of dwellings 250.0 269.1 28. 0 7.6 Financial services 108.0 121.5 141.5 1/ 3.5 Othpr Prvices 271.5 320.2 35 68 T/ 9.0 Trade 1,028.2 1,085.2 1,183.h 31.1 rrnvprnment 2). JP 283.8 31 GDP at market prices 3,200.0 3,523.4 3,866.9 100.0 Net factor inrcme from abrrd 109.5 116.5 -12. 1/ 3.3 GNP at market prices 3,309.5 3,639.9 3,991.h 103.3 lp--c: indirdect. +.nrae 316. 35. 38A).6 10.0n plus: subsidies 63.3 82.5 85.4 2.2 CP urce: Mite"rz. d P n D c 3 67n a 3 la S,6 2 .n Source:~- lj-L-e ln;Dito- uciintr-le de la Statistique. Table 5 Resources Available to the Economy and Their Use (millions of Lebanese pounds) 1964 1965 1966 Resources: GDP at market prices 3,200.0 3,523.4 3,866.9 Imports less exports of goods and services 670.2 734.4 860.6 Total resources 3,870.2 4,257.8 4,727.5 Uses: Consumption Houieholds 1/ 2.864.h 3)110.7 3.393.0 Government 309.3 35h.6 LO1.5 Total consumption 3,165.7 3,h65.3 3,795.0 Gross fixed capital formation Enterprises 5630 6494 723a1 Government 133.8 129.8 165.6 Total gross fixed capital formation 2/ 697o1 779.2 888.7 ,.,~ -yr,'' */ ', 43.7 Tota~l use 1 P70.2 A 0L07 A 707 ff 1/ ncludes consumption by tourists and other foreign travellers as follows (LL mi): 1964 - 275; 1965 - 326; 1966 - 357. 2/ Financing: Operating surpluses of enterprises 32.0 35.0 38.7 Private savings 37u.o u4e.4 oo.1 Government savings 112.6' 108.8 143.1 inflow of. reources from abroad 189.1 206.3 284.5 Total gross capital formation .re792.5 932. Source: A4nistAre du Plan; Direction Centrale de lA Statistique. Table 6 Production of Principal'Agricultural Products (1,000 metric tons) Product 1960 1961 1962 1963 196L 1965 1966 1967 Wheat LO 69 75 60 60 55 70 69 Other Cerals 26 26 29 23 27 2h 23 21 Pulses 13 10 11 9 lb 15 13 ll nitrus 155 200 200 225 225 232 250 228 Apples $3 85 80 75 125 115 104 157 Pea 3 9 5 b lb 5 5 11 Bananas 26 26 25 28 22 25 30 27 Grapes 70 90 85 90 100 8L 76 88 Firs lb 17 25 25 24 15 12 13 Stone Fruits 20 28 23 25 37 33 24 32 Nuts b L 4 4 3 L 4 7 Other Fruits 19 22 20 17 9 8 8 15 Onion & Garlic 2h 26 2 36 27 28 35 8 Tomatoes 25 30 32 34 h2 45 54 59 Potatoes 28 50 60 70 80 5h 79 81 uicumber 23 20 25 20 19 17 21 22 Beans lb 15 17 10 11 15 13 17 Watermelons 22 25 35 21 27 33 1$ 19 Other Vegetables 78 83 109 118 132 125 127 103 Veyetable Oil l/ 7 15 5 16 9 13 9 16 Sunar 2/ 3 $ 13 12 16 Tobacco 3 L L 6 9 6 6 Milk 59 67 77 88 106 107 103 95 Eggs 3 L 6 7 11 17 27 32 Poultry Meat h 6 10 11 13 15 18 16 Beef 2 2 Mutton 1 1 1 1 1 1 2 2 +her Mea+ A 6 7 6 A A 7 6 I/ Oil equivalent of olives, cottonseed, sesame, groundnuts and anis. 2/ in awa uuva equivalent. ource: Pruuuctiun anu suppis 0 agrlultural prouucus in Leoanon; Agricultural Statistics: 1967 - Ministry of Agriculture. Table 7 Malor Irrigation Projects in Lebanon 1. HermAl and Oa nroiects ara: 1st siae AOOO ha 2nd stage 2000 ha cost: 1st stage LL 20 million 2nd stage LL L million implementation: Agreement with Syria on the ns of the Orontes waters being negotiated. Engineering completed; works on firs+ sage will +ake thre vears, No contract awarded as yet; financing has been included in offers from several firmso As a third stage, a hydroelectric power plant of 10 MW will be naddd a+ an estmated cost of LLh million. 2 Akkar Pln projec. at OC. TT> JAJ U411. /w *..amwt. +'.++4w *i+4mn+n a. y'.fS iJa, m T 1 i l cos:U. LL 60 mllion (very envative otiatLO, cuduuig A 11 mrdiU on in studies. implementation: The project is being studied under a FAO/UNDP project. .f as iituy stuuy will bO ready in 1-0 -eas and engineering may take another 2Y years. The studies are expAnoive c us of t Oh search for unueIground water. A small area is being developed as a pilot water seprojectirig water storage. The project is as yet not rigidly definedOU. Table 7. continupd 4. Bekaa Sud prolect area: 17.000 ha cont: numninc statIon - TT. L-A million first part canal - LL 6.0 million second part. nanal - T.T. 3-A million additional investments - not available implementation: Construction on the pumping station has started. Bids have been invited for the firS4 -n-+ o4 +e canal (i km). The canal is scheduled to be T T.han nd nrniat imnim nnt'i+iin A-. y--.-.--'. .J being LI construct e Topography of the project area is difficult for gati. n "e.L-Ie unemi.n UU go aneau with any rigidly defined project has been taken an o earIy oftphomIvd..on Une projec 1s to be expected. Source: Ministry of Electricity and Water; Office du Litani. Table 8 Sectoral Composition of Industry in 196h (millions of Läbanese Dounds) mployment Value added Sector of industry 1/ Sales Number i Amount 1 Food ind-tries 208.1, 5,637 13.7 L3.3 13.9 Beverages 33.3 1,489 3.6 16.9 5.4 Tnbacc 71.6 2,033 h9 ho.6 I3.O Spinning and weaving 60.8 5,022 12.2 2h.0 7.7 Garment and shoe ndustry 9.8 1,08 9.9 22.1 7.1 Wood industry 2å.2 1,805 h.h 7.7 2.5 Furnitureindustry 37.7 3, 9 8.5 17.6 5.6 Paper manufacturing 15.0 556 1.4 5.2 1.7 Printing h2.6 3,53. 8.6 25.2 8.1 Leather and fur 32.3 996 2.4 7.8 2.5 Rubber 3.3 25h 0.6 1.3 0. Chemical industry 26.8 1,331 3.2 9.9 3.2 Petolem pout77n 1.0 17 n c. )1 Non-metallic minerals 86.8 5,185 12.6 L2.8 13.7 Basic 4 metalindUStryj 19.9 921 2.2 . .3 Metal products 39.6 2,922 7.1 19.1 6.1 r-A - ')ÅR fl 7 -1 l f A MacIne production 3 &68J -.7 1.V M.6 Electrical machines 3.4 188 0.5 1.7 0.5 Transport equipment 1 .7 -13 if'> n. .7 n0.2 O~~i.JJ i J-2.i~L m~ 44 .L . t M C- Miscellanous .2 451 1.1 3.0 1.0 TOTAL 550.2 41,093 100.0 312.3 100.0 1/ Establishment with five employees or more only. Source: Industrial Census, 1964.  Table 9 Number of Foreign Visitors and Region of Origin 1/ 1961 1962 1963 1964 1965 1966 1967 Syria 235 294 340 L89 620 812 703 jodanA 76 91 114 13) 107 Iraq 21 15 41 36 58 59 33 Saudi Ar a L_% 17 21 25 25 33 38 3 Kuwait 12 10 18 19 20 31 11 Pain-+ Stn 11 10 11 13 ' 17 22 15 U.A.R. 15 13 9 10 11 24 23 Other anb Coun+ries C 7 1) 16 20 99 93 ~,vI-,1 ~ CV~,,,,+y~aa 71 1"), c4) 70l1 J 119 if ODBAL~~~ Drbll) L U 44 4U:: ) France 11 15 19 27 43 45 31 'ermany J- L0 iC" .u ) ru _ Other European Countries 26 27 42 51 69 79 67 Total Europe 75 81 105 137 180 200 148 United States and Canada 41 44 51 72 82 101 63 Latin America 6 5 6 11 15 11 8 Australasia 2 2 3 h 6 6 4 Asia (Except Arab Countries) 18 26 28 34 36 38 37 Africa (Except Arab Countries) - - 2 4 4 4 Miscellaneous and Undetermined 20 38 - 2 4 10 4 TOTAL 536 630 729 965 12221 1,515 12218 Note: The 1966 Tourist Survey Drovides the following breakdown by the tve of foreign visitor in 1966 (in percentages): Syrians. Jordanians Other Arabs Non-Arabs Total Foreign Residents 2/ 15.0 6.5 6.6 10.0 12. Seasonal Workers 11.5 7.8 0.0 0.0 6.8 Tourists 71.1 82.8 91.1 87.1 78.6 Excursionists 3/ 2.4 1.9 2.3 2.9 2.6 Total 100.0 100.0 100.0 100.0 100.0 1/ Exclusive of transit passengers. / Tourists not staying overnight. Sources: Ministere du Plan, Direction Centrale de la Statistique; Conseillaioa du ITo1--sme. Table 10 Analysis of Tourism in 1966 Average Average Daily Total Number Stay Expenditure Expenditure (1000) (days) (LL) (LL million) In Hotels Syrians 47 2.8 55 7.1 Jordanians 33 2.5 76 6.2 Other Arabs 89 3.1 93 2L.9 ton-Arabs 25L 3.h 100 86.1 All Tourists 1120 3.2 93 121.3 Outside Hotels 1/ Syrians 530 8.6 16 71.3 Jordanians 78 10.0 27 21 .1 Other Arabs 94 16.2 28 L2.7 Non-Arabs 68 7.0 31 1.0 All Tourists 770 9.6 20 1_5.h Excursionists 40 2/ 77 3.1 TOTAL 12230 7.1 32 277.8 1/ Staying in boarding houses, in apartments, with family or friends, etc. 2/ Tourists not staying overnight. Source: 1966 Tourist Survey; Conseil National du Tourisme. Table 11 Assets and Liabilities of the Bank of Lebanon (millions o? Lebanese pounds) Dec. Dec. Dec. Dec. June End of Montn: 64 L0 yo _ _16 1967 1968 Gold 50y 561 594 594 886 Net IMF position 5 5 5 7 7 Foreign exchange 153 213 274 267 97 Claims on Government 1/ 56 79 73 65 66 Claims on Private Sector 2/ 82 83 81 76 74 Claims on Commercial Banks 18 24 166 219 199 Other Assets 9 24 17 20 Total Assets 917 990 1j211 l248 LIABILITIES Currency in Circulation 539 590 705 846 (of which: Outside banks) (500) (5h7) (6h) (786) (808) Deposits of Banks 65 68 127 96 Government Deposits 276 260 307 209 163 Foreign Obligations 3 4 4 4 Capital and Reserves 17 19 23 hO Other Liabilities 17 49 45 53 Total Liabilities 917 990 1,211 l28 1/ This item represents book losses resulting from a revaluation of foreign asset. ExUludig Uummercial bans; thU item largely represents a 11 (U million credit extended to BCAIF by the Banque de Syrie et du Liban and taen over by the Bank of Lebanon. Source: Bank of Lebanon; international Financial Statistics. Table 12 Assets and Liabilities of the Commercial Banks (millions of Lebanese pounds) Including Tntra Bank Excludinz intra Bank End of Month: Dec. Dec. Dec. Dec. Dec. July 19A 1965 1965 1966 1967 1968 ASSETS Liquidi+ies inA 99 18 1i9 247 Foreign Assets 1,460 1,848 1,661 1,548 1,317 1,415 Claim on Private Sectorl/ 1.927 2,295 1961 2)293 2,217 2,323 Demand Deposits 890 962 879 894 782 890 Time and Foreign Foreign Liabilities 1,023 1,156 1,020 820 612 567 Other items (net) 303 428 320 460 545 527 Breakdown of Claims on Private Sector Agriculture 124 128 82 93 94 Construction 141 207 177 196 213 Trd and, Services 987 1,18~1 979 1,243. 1,2o of which: (r1ign uAr ade (1911 )(23) \(234 (34) U8)U Domestic trade (547) (668) (485) (564) (549) Consumer credits (122) (135) (135) (157) (140) Finanial±~± bitituins 1510 116 115 143) 3 Other 288 360 364 328 242 Total 2 295 1,961 2 257 1/ Excluding the following claims on foreigners, included in IFS figures (LL million): 1964 - 10; 1965 - 15; 1966 - 43 and 1967 - 28. For July 1968 these claims are included and therefore the amount is strictly not comparable with those for previous periods. Source: Bank of Lebanon; International Financial Statistics. Table 13 Assets and Liabilities of the Banne de Cr4dit Agricole. industrial et Foncier (BCAIF) (millions of TbannA nounds) December 31, WAN 1966 1U67 Loans Outstanding 104.3 120e0 116.7 of which: Agriculture (h .) (392) (3AA) Industry (8.5) (51.1) (48.5) Fruit Office Loans ( - ) ( 8.4) ( 9.h) Other Assets 7.6 12.4 21.4 Total 111.9 132.3 138.1 Liabilities: Capital 5.0 5.0 5.0 Reserves 12.0 3.1 15.5 Creditor Banks 85.2 87.1 83.0 of which: Bank of Lebanon (67.0) (67.5) (65.1) AID (10.9) 2/ ( 9.1) Other Banks ( 7.3) ( 8.8) Public Institutions 5.5 20.9 29.4 Other Liabilities 4.1 6.2 5.2 Total 111.9 132.3 138.1 1/ Mostly hotels. 2/ Not available. Source: BCAIF Table 14 Monetary Statistics, Exchange Rates and Wholesale Price Tndices MONTETARY STATITICS (millions of Lebanese pounds) Demand Total Quasi Net Foreign Porencr T~a+os Mtns Mnnym Assets 31 Dec. 19614 500 890 1,390 1,272 1,187 31 Dec. 1965 547 962 1,510 1,706 1,468 31 Dec. 966 645 894 1,541 1,892 1,633 31 Dec. 1967 786 782 1,570 1,784 1,570 3n rneC 109 8n8 875 1 AA 1 OA 1, An (year end; LL per 1951 : 3.73 1956 : 3.22 1961 : 3.08 1966 : 3.17 1952 .3.66 1957 3.18 1962 3.01 1967 : 3 13 /; * e y / r a * v *;V . e aA u * .eAJ 1953 : 3.42 1958 : 3.18 1963 : 3.10 June 1968 : 3.16 L154 : .2215 3.16J 1964 : 3.08 1955 : 3.24 1960 : 3.15 1965 : 3.07 NHOLESALE PRICE INDICES (yearliy averages; 7950 = UUJ uoU- llctw vombus- Cout1ruction yOeU All Stuffs Mat. tibles Textiles Materials Products Products 1955 96 87 98 92 101 100 95 196 11 87L 16 8310 97 103 1965 110 91 115 100 100 126 107 1966 111 98 117 103 102 133 110 1967 122 99 117 105 104 134 115 Source: International Financial Statistics; Bulletin Statistique Mensuel; Recueil de Statistiques Libanaises. Ranant utunts 1/ -(milU5-ine at ~äbnes po=èdg) 1961 1962 1963 1964 1965 1966 I. Current lcount I InpR A ... -1 C -11R.3 -1330.7 -1519.0 -1733.i Exports f.o.b. 3/ 230.9 320.6 323.4 424.0 447.3 584.1 Trade Deficit ~ -9769. ~ . -0.7 -1071.7 -11E9.3 Tourism (earnings only) 147.3 153.2 178.7 191.1 241.9 274.8 Investment Inaame (receiptag 116.9 117.3 122.5 156.4 175.3 261.7 Ie nI m payaT~SJ - 14.7 - 49.L - 544.L4 - - 7. - 7. Tranport, and Insurance (net) 122.0 166.0 160.2 160.6 179.2 155.4 Government n.I.e. (net) 67.7 65.9 68.0 83.9 79.6 96.8 MIsellaneous Services (net) 158.7 i62.5 168.7 112.3 137.6 88.6 Total Ourrent Account - kuu. - 129.! - 219.2 - 25h.h - 3h9.7 - 343.6 TI rntg and R.ittanoes 1202 98.C) 108.8 108.3 107.9 68.7 III. Capital Hovement Long-term Private Capital 44.0 52.4 50.1 63.1 74.3 78.3 Shor,t-term Private Capital (net) 103.7 67.0 58.0 107.0 143.1 - 286.0 Capital Remittances -/ - - - - - 550.h Long-tern GovernmentCapital 18.3 11.0 7.2 20.5 4.8 12.2 Total apita U. 190.6 222.2 35.9 Net Foreign Assets - 22.1 - 12.1 - 47.0 - 118.2 - 26.0 - 62.h Net Monetary Gold - 64.6 - 96.h - - - - 33.8 Total Monetary Changes - 86.7 - 47.0 - 118.2 - 26.0 - 96.2 V. Errers and Ovnianl 5OA5 9.9 J.2.1 73.7 -5.6 16.2 1/ Balance of Payments figures are ,not e tly comparable over time as methods of estimation vary fro yer t yer dpenin ontheperens reiyosile or omplin th satistics under the anual Government contract with ethe American University of Beirut (Economic Research Institute). 2/ Imports figures include net 1uparte of non-monetary gold (LL 7 million in 1961-1965, LL 11 million in 1966). 3/ Ineludes re-exports. _4/ Prior to 1966 included in grant and remittances and private capital. Source AUB - economie R~arnh Tntitutin. Tabie 10 Composition of roreign Trade (millions of Lebanese pounds) 1961 1962 1963 1964 1965 1966 1967 IMPORTS Live animals 52 49 46 56 55 96 63 Cereals 47 58 59 3 9 83 89 Other food stuffs 1/ 167 181 187 210 224 230 253 Oil and oil products 67 65 66 66 8o 86 90 Chemicals 56 61 74 79 89 111 102 Wood and wood products 32 23 29 34 37 41 26 Rubber and plastic and articles thereof 21 21 26 29 32 41 39 Leather and leather products 11 18 15 20 21 32 26 Paper and paper products 25 28 32 38 52 53 L9 Cotton 27 32 25 28 29 27 28 Wool 22 24 24 29 28 33 28 Other textiles 63 7h 84 95 108 132 112 Stone, glass and ceramics 21 20 23 25 27 29 27 Precious metals and stones 304 372 225 363 295 372 350 Metals 107 93 115 123 130 157 132 Machinery 124 123 136 155 176 215 208 Transportation equipment 84 70 97 115 121 126 85 Precision and musical instruments 15 17 16 18 21 24 21 Other imports 27 37 35 48 55 51 41 Total imports 1,272 1,366 1,314 1)57L 1,667 1,937 1,770 EXPORTS 2/ Fruits 39 38 36 42 47 59 72 VatahlP. 7 19 19 1_ 98 91 9Q Other food stuffs 16 32 33 34 49 Sh 70 T.Pqther ndr hies 6 in 0 61 Paper and printing 4 5 6 7 11 17 16 Textiles 11 22D 23 23 20 263 Precious metals and stones 3/ 34 28 21 26 62 57 92 Metals 7 11 0 12 20f 25f2 Machinery 8 9 10 11 22 28 26 Tran_-sportantion. equipment 10 )f 11 9 -18 19 21n Other exports 14 18 23 28 37 45 55 1/ Includes some non-food animal and vegetable products and tobacco. 2/ Excluding re-exports. 5/ This item is considerably underestimated because of non-registered exports. Real exports in this category are presumably equal to imports less some LL 7 million for domestic use. Source: Statistiques du Commerce Exterieur du Liban, 1960-1965; Ministry of Planning. Table 17 Dorapi c Distribation of Foreig Trade 1/ (percentagos) 1961 1962 1963 196L 1965 1966 1967 IMPORTS Co-non rMare 3 3U06 31.8 )1. 123. France (9.6) (8.3) ( 9.4) (8.5) (9.3) (8.3) (8.7) West GArmanv (10.81 ( 8.8) ( 9.2) ( 9.0) ( 9.7) ( 9.61) ( 9.1) Italy (7.2) ( 7.0) (7.1) ( 7.4) ( 7.4) (7.8) (7.8) United Kingdom 7.5 7.0 7.1 7.5 7.0 6.9 6.3 Other W. Europe 12.3 12.3 11.0 11.2 10.7 10.6 11.8 Arab Countries 15.6 24.0 23.5 23.0 21.8 20.5 20.4 Iraq l, 2j4j 3.2% ~ 3.) \.0) .2 3-7 % 5.) \ .) Saudi Arabia ( 5.2) (4.4) ( 3.9) ( 3.6) ( 2.4) ( 2.3) ( 2.8) Syria ( 5.8) (19.83 (1l.2) (11.01 (13.01 (12.)) (11.A' U.S. and Canada 12.7 12.3 11.1 11.9 12.4 14.3 10.6 Socialist Countries 5.0 6.2 8.3 9.1 8.9 9.L 10.4 Japan 1.7 1.8 2.4 2.6 2.7 2.9 3.0 Other Asia 0.8 1.1 1.0 1.2 1.1 1.5 2.0 A, --L;e C' t\ U .1 1 .9 1.3 . Latin America 0.5 1.2 0.7 0.8 1.1 1.1 1.1 Australasia and South Africa - 2.2 1.7 O.h 2.2 0.9 2.9 Unclassified 8.9 0.6 0.3 - - - - Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 EXPORTS 2/ Common Market 6.9 13.4 15.2 10.6 9.1 10.0 7.7 France (1.5) (3.1) (6.0) ( 2.6) ( 2.7) ( 2.3) (2.5) West Germany ( 1.5) ( 3.6) ( 4.3) ( 3.1) ( 1.9) ( 2.5) ( 1.6) Italy (3.3) (5.3) ( 6.8) ( 3.4) ( 3.3) ( 3.6) ( 2.6) IT..44-4. V4 -4-J.. m / .1 1.9. . q9 19 r, . I I, IL C Other W. Europe 1.5 6.0 4.8 5.8 5.1 4.1 h.2 Middle East 66.2 56.0 q3.0 58.5 60.h 5L.5 48.0 Jordan (18.6) (10.6) (10.2) ( 9.2) ( 9.1) ( 9.8) ( 7.9) Saudi Arabia ( 8.7) (13.9) (12.6) (18.8) (26.2) (15.0) (19.5) Syria (12.0) (12.5) (10.5) (11.2) ( 7.0) ( 7.5) ( 6.2) Kuwait (11.0) ( 8.6) ( 7.5) ( 7.6) ( 5.4) ( 6.8) (11.1) Tran IA 7) f 11 ( 1) fA 1 A 01 to 1 'L71 U.S. and Canada 5.3 5.3 5.8 6.6 3.8 3.8 5.2 Socialist Countries 8.6 8.6 9.3 7.6 5.7 7.0 7.7 Asia 0.3 3.9 1.8 1.8 2.7 3.3 2.8 Africa - 2.7 3.8 3.6 L.3 8.0 6.9 Latin America - 0.7 0.7 - 0.1 0.1 0.1 Australasia and Snth Africa - - - 0.1 0. Unclassified 5.3 0.5 2.3 3.6 3.7 6.2 2.3 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 . .LJL 4VW V.L LUMLBA UILL I-U.jk; . 2/ Excludine re-exorts. Source: IMF - Direction of Trade Table 18 Central Government Revenue (millions of Lebanese pounds) Bdgt Budget 1962 1963 1964 1965 1966 1967 1968 1969 1. Direct Taxes: Building Tax 20.9 21.0 26.6 29.2 31.7 36.8 37.0 £1.0 Income Tax 31.8 37.8 43.2 52.0 5o.7 63.2 70.0 66.0 Inheritance Tax 2.1 2.1 1.6 2.6 2.6 3.0 5.5 6.5 TOTAL 5.7 61.0 71.2 83.7 92.8 103.0 112.5 111.5 II. Fees and Dues: Taxes on Legal Actions 2.5 3.2 3.6 3.9 6.6 4.1 5.3 5.3 Registration taxes 1L.5 17.6 18.2 20.8 26.3 21.1 2h.0 20.0 Stamp taxes 11.6 13.5 16.6 16.5 17.9 19.9 28.3 25.0 Traffic fees 2.6 1.5 6.6 3.8 2.8 1.8 6.0 3.C Miscellaneous 3.1 3.6 3.3 6.0 4.0 3.7 6.6 7.6 TOTAL 36.2 39.3 6.6 68.8 53.7 50.6 66.2 63.7 III. Consumption Taxee Customs Duties 116.7 131.1 165.6 164.0 176.3 166.1 178.2 178.0 Tax on care 6.9 8.2 10.7 11.1 11.3 1o.8 16.2 16.0 Tax on gasoline, etc. 31.5 63.0 46.5 66.2 52.3 55.L 54.o 65.0 Tax on tobacco 26.2 31.6 26.7 26.1 28.3 32.7 32.0 36.0 Tax on cement Z.3 4.4 6.8 5.2 5.3 5.2 5.5 5.0 Tax on alcoholic beverages 2.0 2.0 2.1 2.1 2.1 1.7 2.2 2.2 Others 0.1 0.1 2.3 2.5 7.0 5.9 2.1 2.3 TOTAL 185.6 220.3 236.9 257.6 282.5 257.8 288.2 302.5 IV. Revenues from Government Properties and Enterprises 6.9 11.5 12.1 13.3 16.5 15.1 16.8 16.3 V. Petroleum Royalties 67.2 j 2 25.3 29.6 30.7 33.9 35.0 35.0 ?. r.a. 106 2L.2 16.4 13.9 16.1 15.7 VII. Deductions for Retirement 7.0 6.9 5.2 10.2 10.5 12.9 13.5 15.0 VIII. Others 18.8 38.1 39.7 18.0 23.6 33.4 22.9 26.8 o a Revenie 360w !.1 1i 7 blzh 485.0 52.5 520.6 571.2 587.0 Total Expendtre bl5.3 630.3 473.0 526.2 567.7 591.6 648.5 587.0 Deficit 55.2 17.6 27.6 61.2 23.2 70.8 77.3 - Transfers tod ad famdt\ Independent Agencies (not included above) - 8.5 -13.7 - - - Errors and Unspecified 0.6 0.3 - 0.1 0.1 -0.9 Financed byi Drawings on Reserve Fund 55.6 26.6 1.9 6. -31 57.0 Drawings on External Loans - - - - 2&.t 12.9 1/ Subject to Parliamentary apprcval. As a result of wage increases to Civil Servants and an increase in some taxes, both revenue and expenditure are likely to be LL 25 million higher tnan budgeted. In addition a supplementary but.net of LL 80 million has been introduced to Parliament. Source: Ministry of Finance. Table 19 Central Government Acpenditure by Ministry Budg,et Estimates 1962 1963 1964 1965 1966 1967 1967eEs199 1 Presidency cf, the R, O$ t .08 9.Y 0.5 0.9 Parliamnt 2.7 .A L2 . L L' 2o '*A ag. se age e l*J i Presidency of the Cdbhel of Ministe - 7 k 9. 133 13.0 24.1 25.7 21.9 Ministry of Justice 8.6 8.4 8.9 10.0 10.0 10.8 10.6 12.2 inirstry of Foreign Affairs 9.9 3.. 12.7 20.0 22.4 26.8 26.8 25.1 Ministry of Interior 35.7 36.4 43.0 43.4 44.8 48.6 53.2 51.6 Ministry of Finance 21.0 16.2 18.5 19.5 20.3 21.2 22.h 23.6 Ministry of Defense Bo.6 68.9 76.6 90.1 105.9 121.9 135.9 122.3 Ministry of Education 42.2 55.7 59.5 78.7 82.2 90.8 101.5 110.6 Ministry of Public Health 12.9 I.B 11.7 16.6 19.5 Mrk7 2LA 9.7 Ministry of lobor and Social Affairs 9.4 8.4 12.7 21.1 18.4 12.1 13.9 9.2 Ministry of Information 8.7 8.7 9.7 12.3 10.8 6.0 7.2 6.6 Mirnisry o Public WorTs 124-.7 1fl * 1n. 13. Ia *se Ir - Sn* .1 33*2 la.Le7 "P5el Ministry of Agriculture 7.4 8.4 15.5 13.5 16.2 16.7 16.1 13.1 Ministry of National Econony 8.8 2.3 10.8 6.2 2.1 2.4 2.4& 2.2 Ministry of P.T.T. 6.4 7.2 8.2 9.2 9.4 10.6 11.7 10.8 Ministry of Planning 2.6 3.0 2.4 2.2 2.2 2.0 2.6 2.h Ministry of Touriam - - - - - 1h.0 13.A 9.2 Ministry of Electricity and Water - - - - - 31.4 21.3 17.5 Public Debt (mostly pension pmWments) 27.3 19.7 24.5 27.1 32.h 29.4 32.3 34.8 Unallocated oenamx - - - -. Tos,ars"rtw jI- k?30 LLI 1& 648.5 587.0 1/ Subject to Parliamentary approval. See footnote 1 of table 19. Source: Ministry of Finance Table 20 Revenue and xpEnditure of the Autonomous Agencies (millions of Lebanese pounds) 1964 1965 166 1967 Revenue ExpR Revenue p. Revenue RJp Revenue Office de 1'flectricit6 46.6 31.2 53.8 54.3 58.5 56.5 63.3 64.0 Office du Litani 27.6 32.3. 29.4 29.7 21.8 23.4 29.,6 26.8 Office des Ohemins de Fe-1 28.3 25.0 18.3 20.5 19.4 21.1 22.1 24.0 Office de la Reconstruction 22.9 31.0 25.7 15.6 21.8 20.8 24.,3 22.8 Office du D6veloppeænt Social 12.5 10.4 13.0 13.2 11.4 9.3 10.2 13.1 Office des 3aux de Beyrouth 7.9 5.2 7.7 5.4 8.6 6.3 9.1 17.13 Office des Recherches Scientifiques Agricoles 2.6 2.4 3.8 2.9 3.0 3.3 5.5 3.7 Office Fruitier 1.9 1.6 2.2 1.7 2.6 1.6 9.3 3.1 Office de la Soie 0.6 0.9 0.5 1.0 1.5 1.5 0,7 0.9 Office des Eaux Ain El Delbi 1.2 1.1 1.3 1.2 1.4 1.3 1.4 1.5 Office des Baux de Tripoli 1.0 0.8 1.0 0.8 1.1 1.0 1.2 0.9 Office des gaux de Barouk 0.9 0.9 1.1 1.0 1.2 1.2 1.2 1.2 Office des gaux de Hetn 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.5 Office de l'Irrigation de Kaemieh-Ras-EL-Ain 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.4 Office des Haux de Kesrouan 0.4 0.3 0.4 0.4 0.5 0.4 0.5 0.4 Office des Eaux de Jabal Amel 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 Office des Saux de Sour 0.1 0.1 0.2 0.2 0.3 0.2 0.3 0.3 Office da Port de Tripoli 0.3 0.1 0.4 0.1 0.4 0.5 0.6 0.7 Office de la Oit6 Sportive 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 Office des Eaux de Saida 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 Offico des Baux de ZaL16 0.1 0.1 0.2 0.2 0.2 0.2 0.3 0.3 Office de la Production Animale - - - - - - 0.3 0.2 .Admnistration du Tålaphone 23.9 22.0 26.6 26.8 32.4 28.0 32.5 28.9 Ar~inistration de la Loterie Nationale 12.0 13.0 12.4 12.1 15.4 14.8 16.9 15.5 Office du Elé 2.2 8.8 1.2 4.2 2.7 1.3 5.2 1.5 Université Libanaise 4.8 2.6 5.5 3.3 2.6 4.2 4.6 6.0 199.7 191.7 206.5 196.4 208.8 198.9 241.2 235.6 l/ Includes public bus service in Beiut. Note: Revenue includes incom from operations, transfers from the Central Government as well1 as Treasury and other loans; it excludes drawings on the ageney's reserve fund. _xgenditure inc:ludes administrative and operating e;enses, capital expenditure, repayments of Loans and advances, and transfers to the Central Government; it excludes depreciation allowances and additions to the agenqy's reserve fund. Source: Ministry of FinancB Table 21 Det1ils of Revenuc and Expenditure of somL Major Autonomous Agencies (Millions of Lebanese pound.) Psommis R-ndi t-r v...Draings from Transfes Treasury A.mdmstrativ1 Rpment, of Soeations Fund Oot loanw epenses expenditure advances Reserv Fund Office de lElectricit6 1964 6.6 - - - 166.6 28.6 2.3 2.3 15.3 1965 53.3 0.5 54. 38.7 11.9 3.9 - 1966 58.5 - 58.5 42.5 10.9 3.1 2.0 1967 63.3 0.8 - 6 i.1 0.1 13 1 t Office de Litffi 196 1.3 .7 1.4 2b.8 32.2 3.7 25.3 3.3 - 1965 13.5 0.3 2.0 13.9 29.7 4.8 21.8 3.1 - 1966 14.6 1.6 - 7.1 23.4 2.9 1h.å 6.0 - 1967 14.0 13 29.0 .0 f 14.3 7.5 2.1 Offic des hemine de 7.. 1 1964 6.5 - 10.0 11.8 28.3 4 .8 10.2 3.3 1965 6.3 2.2 10.0 2.0 20.5 16.8 3.7 - - 1966 9. .7 10.0 - 21.1 10 1 20 - - 1961 9.b 1.9 12.7 - 24.0 210 0.5 2. - Office de la Reconstruction2/ 196& 22.9 8.1 - - 1 31.0 | 3.6 19.3 9.0 - 1965 25.7 - - - 25.7 1 1.9 13.7 - 10.1 1966 21.8 - - 21 8 3.2 16.6 1.0 1.0 1967 24.3 - - - 24.3 8.4 14.4 1.5 Office du Dev*lopf t Social 1964 1.0 - 11.5 - 12.5 10.-- 2.1 19K.5 -13.2 K 11., 1 1966 - -- 91 2.1 16 0.1 2.0 10.1 - 13.1 13.00.-- Office de Eaux de B yr uth io.3 1966 8.1 - 8.6 5 0.3 10 196 18.711 1967 9.1 :8.7 - - 17.8 5.5 1.3 11.0 - Adårnstration du Talephon! 1964. 23.9 - j-.97 - 1.9 96 26 0.2 26 1 - ' .0 1 . 1966 32. - 1- - 32.4 16.5 11.5 - h. 1967 32.5 - - - 32.5 16.7 12.2 1 -3 Univesit Libanais1 1965 0.1 1 - U.7 a-n.ni 2.6 - 2.3 1965 0.2 - 5.33 - -2.1 196610.3 1.6 2.3 4- .2 4.2 1- 1967 0.3 1. 4.3 - 6.0 6.0.- - Office du EM 1964 2.2 6.6 - - 8.8 | 1.2, - 7.6 1965 1.2 1.0 - - 5.2 5.2 / - 1966 2.7 - - - 2.7 1.3 - 1.3 1967 5.2 - - 1 - 51.5 - - 3 Loterie Nationale 196 12.0 1.0 - - | 13.0 | 13.0 - 1966 12. 0.4 12 8 12.7 - - 1965 15.1 - - - 1.2 l2.0 1967 16.9 0.3 - 1 17.2 17.2 1967 0 Ofie Frutir - 196. 1.0I- -B. 1.9 1l . . . 1965 1. - 0.8 20.1 0.1 0.3 1966 1.0. - 1.6 - 26 1.5 - 1.1 1967 1.3 - 1.0 7.0 9.3 2.2 - 0.9 3.9 Offie den Rocherchen Bient. Agr. 1965 0.2 - 2.6 - 3 .6 2.6 0.7 - 0.2 1965 - 3.3 2.6 0.3 - . 166 0.2 0.3 2.8 - 33 2.8 0.5 - - 1967 0.2 - 5.3 - 5.5 3.0 0.7 - 1.8 1/ Including Public bus service in Beirut. In 1967 the operating loss was attributable for 60 percent to the railway and for .0 prcent to the bu. sersice. 2/ Income from operations cf the Office de la Reconstruction lergely consists of special tax le,e. 3/ Inciuding LL 3.3 million incurred in previous years end LL 1 Inmilon unpecified. 1_/ Including LL 1.7 million unspecified. Revenue ana dxperdiure Of o±vuE IIU icipd±Uy (millions of Lebanese pounds) Expenditure Current on Major Expenditure Projects Total 19229.5 40.5 70.0 1963 32.5 16.8 h9.3 196l 35.0 25.0 60.3 1965 43.2 7.8 "1.0 1966 5 '.0- 13.0 68.0 1967 h9.0 28.0 77.0 1968 Budget Receipts Expenditure Rent tax 12.5 Salaries 23.2 Construction Other Adm. Exn. 1.9 permits 8.0 Maintenance 16.0 Real estate tax 7.0 Grands Projets 7.3 Gasoline tax 9.0 Other 16.6 Miscellaneous 25.5 Drawings Reserve Fund 6.0 Total 68.0 6("1.0 Source: Beirut Municioality Table2 Miscellaneous Statistics Unit 1961 1962 1963 1964 1965 1966 1967 1. Power Hydraulic - capacity NW 73 126 126 126 198 198 198 - production UWH 174 251 350 375 505 556 683 Thermal - capacity NW 146 157 159 159 159 177 177 - production 3WH 301 301 274 317 260 309 224 Total - capacity NW 219 283 285 285 357 374 374 - production GWH 475 552 624 692 765 865 907 2. Port of Beirut Tonnage discharged 1,000 m.t. 1,229 1,359 1,363 1,538 1,716 1,776 1,706 Tonnage loaded 1,000 m.t. 282 403 377 448 453 461 584 3. Port of Tripoli Pemtrml. ln.4A 1 ,0i .. + 11 100 12 ,71 lb , C7 1, 1l IC 1nA I) .d lb AAO Merchandise handled 215 346 260 325 348 299 4. Urt UL Sia Petroleum loaded 1,000 m.t. 14,472 15,309 18,088 20,607 20,691 21,545 5. Railways Earnings LL mln. 2.9 3.2 3.3 3.6 3.2 3.1 3.1 Passenger traffic mn. pass. I. 5.6 6.0 5.3 5.8 6.8 6.6 6.0 Freight mln. t. km. 33.7 36.9 43.0 49.0 39.5 45.6 38.0 Freight 1,000 m.t. 523 509 590 660 559 561 h91 of which: Building mat. 1,000 m.t. 245 327 356 305 289 226 Live animals 1,000 m.t. 53 59 63 73 77 53 Fuel 1,000 m.t. 93 93 1114 75 74 5L Phosphates 1.000 m.t. 47 34 68 60 66 68 Other 1,000 m.t. 71 77 59 46 55 90 6. Road Transoort Automobiles: private 1,000 1/ 54 62 73 84 89 96 105 taxis 1,0w0 n/ 3T2 22 34.2 3.2 0.5 9 o.C o.f Buses 1,000 1.5 1.5 1.6 1.9 2.2 2.0 2.2 Trucks 1,000 1/ 7.9 8.9 9.8 10.8 11.8 12.0 .2.8 Highay use s uT-r.Lse ( e- I.Lo A r e7.7 U)nel t 1)UeH 1UU 7. Climate Rainfalli Beirut mm 861 877 1031 918 908 778 1131 arjeyoun rm 7114 718 1018 936 775 909 889 8. Construction Floor area constructed 3/ 1,000 sq. in. 806 985 943 1,320 1,734 960 Floor area constructed / 1,000 sq. in. 1,912 2,457 3,955 Cement consumption 1,000 m.t. b66 671 62h 91-4 1,124 1,100 987 9. Transit Trade Total LL m1n. 891 800 892 933 997 1,050 958 of which: from Iraq LL m1n. 227 323 328 279 317 318 250 from Saudi Arabia LL m1n. 306 268 389 434 436 453 316 from other countries LL min. 358 209 175 220 244 279 392 1/ At the end of the period. 2/ Gann1ine tAyar, 1innA faAa And t.raffin fans. 3/ Beirut, Tripoli, Saida and Zahle only; based on construction permits issued. 4/ Entire country; partly estimated; based on construction permits issued. oUureus 1 .Jec.riu t6 uu LLban 2,3 Bulletin Statistique Mensuel 4 Statistique du Commerce Ext6rieur du Liban 5 Ministry of Finance 6,7,8 Bulletin Statistique Mensuel; Recueil de Statistiques Libanaises, 1965 9 Statistique du Commerce ExtArieur du Liban Table 24 Planned Development Expenditure during a965-l969 and Implementation during 1965 (millions of Lebanese pounds) Actual Total Plan Expenditure Type-of Project Allocation during 1965 Urban water supply 65 9 Land registry 12 1 Power 42 13 Urban development 22 2 Flood control 20 8 Roads 155 33 Airport 17 2 Port of Beirut 16 1/ Railways 12 - Agriculture 72 9 Fishing 10 - Irrigation 123 8 Industry 27 4 Tourism 45 - Education 49 7 Antiquities 19 4 Research 27 5 Public health 45 1 Social development 65 18 Popular housing 60 - Social security 60 1/ Government buildings (including the Lebanese University) 92 lb Insurance for Government employees 15 - Miscellaneous 10 TOTAL 1.080 1h2 1/inc'lud'ed in -miscellaneous, i'any. Source: Mi-nistry of' Planning Table 25 Projections for the Current Account of the Balance of P and the Debt Service Ratio (milions of Lebanese poundis Y _________Actus is Projections f_3 1-961 19672 9r3 -196 -19T - 1 -970 1971 1972 17 Current account Exports f.o.b. 231 321 323 42 tO 584 6:25 70O 800 90) 1,000 1,100 L2ports c.i.f. -1 O .9 L79 - 4 1512 -1722 -1, 5L -1AL -1975 -2,11 -2L? - 2. 41 Trade deficit - 800 - 738 - 856 - 900 -1,065 -.1,138 - 922 -1,1h5 -1,175 -1,210 -1,255 -1,315 Non-moneta gld (n - 7 7 - 7 - 7 - 7 - 11 -11 - 11 -12 - 12 - 13 Receipts from services 690 M 300 921 1C38 1164 1,21 2,300 L L410 .24k; Tourism 147 153 179 191 2148 275 300 325 350 375 400 425 Transport ari insurance 153 213 209 257 283 272 290 310 330 350 370 Investment income 117 117 123 156 175 262 250 250 250 250 250 Government 74 73 76 93 96 115 125 130 135 140 145 Miscellaneous 199 201 213 224 236 240 255 260 26. 270 275 Exenditure on services - 12 1 - 155 - 269 - 316 -32- 140 -i _ - 1480 Travel - 30 - 27 - 30 - 55 - 69 -118 -125 -130 - 135 -140 - 1I5 Transport andl insurance - 31 - 47 - h9 - 96 - 104 -.117 -120 -125 - 130 135 - 140 Investment income - 45 - 50 - 54 - 82 - 98 - 72 - 85 - 95 - 15 -110 - 120 Government - 7 - 7 - 8 - 9 - 16 -.18 - 20 - 20 - 20 - 25 - 25 Miscellaneous - 11 - 12 - 1l - 27 - 29 -.34 -140 -4 0 - 4L5 -145 - 50 Transfers (ot) 120 98 109 108 08 69 75 75 75 75 75 Deficit of goods and services - 240 - 130 - 219 - 254 - 350 - 344 - 301 - 296 - 302 - 312 - 343 Deficit of services and transfers - 120 - 32 - 110 - 146 - 242 -.275 -226 -221 - 227 -237 - 268 Earnigs of god se-vices and not trans 1,041 1,176 1,232 1,453 1,593 1,817 2,020 2,175 2,330 2,485 2,64o Service on exter iblic a: 13 17 23 2h 27 25 17 debt b: 13 17 26 34 45 51 59 Debt service ratio on goods, at 1.1% 1.1% 1.1% 1.0% 0.6% services and net transfers b: 1.2% 1.5% 1.9 2.0% 2.2% Note: Balance of payments figures are not exactly comparable over time as methods of estimation vary from year to year depending on the persons responsible for compiling the statistics under the anral contract with the Economic Research Institute of the American University of Beirut. In particular, the method of estimating transfers, investment income ani expenditure on travel for 1966 differs from that used in previous years. In these cases the starting point for the extrapolations has been the 1966 estimates. The projections in this table serve to provide a rough illustration about the development of the debt service ratio in the next few years. Past trends have generally provided the basis for the extrapolations except, in the case of investment income, where the level of receipts should reflect that deposits with commercial banks may not increase further and where payments increase because of increased development borrowing. Two levels of future debt service are given: (a) service on debt contained in table 2b (debt contracted at the end of 1968); and (b) service on debt mentioned under (a) plus on debt to be contracted during 1969-1973; this has been assumed to amount to LL 75 million per year at 6&4 interest, repayment in 1.5 years after 1 year of grace. Sources: 1961-1966: AUB; 1967 trade figures: Direction Centrale de la Statistique; 1968 receipts from tourism:- Conseil National du Tourisme; 1969-1973: Mission estiMates.  <° r j je .I Ft tfl - - TRIPOLI'$I'1 0; *.-.BI .-oori1ffthhik I 4A Bb- k1 . 5g rr ccepint BEIRUT_:11 JiLiII . ..- Prin ipa 'rriatio projectsi le ~I il l 'I -IIv 1 0 0 40 I 5 BRA y 969 OBRD re469Hie Iajo thermai power plants c' tJicQ41Lia i plant (udrcntutoi iPrincipal iriainpoet .Jiijt~,lKILOME -ERS pFBRUARYn 1969 ibRD? 249.,