U.S. KEEPS LEBANON OFF TERROR LIST

WASHINGTON [MENL] -- The United States, acknowledging that Lebanon harbors
groups deemed as terrorists, has refused to designate the Arab League state
a terrorist sponsor.

A State Department report said Lebanon harbors such organizations as
Hizbullah as well as Palestinian groups on the U.S. terrorism list. But the
report cited limited Lebanese government cooperation with the United States
in the war against Al Qaida.

"The Lebanese government recognizes as legitimate resistance groups those
organizations that target Israel and permits them to maintain offices in
Beirut," the report said. "Beirut goes further by exempting what it terms
'legal resistance' groups -- including Hizbullah -- from money-laundering
and terrorism-financing laws."

The report cited the use of Lebanon as a training ground for Hizbullah as
well as Iranian and Syrian support for groups deemed as terrorists. The
State Department said Lebanese security forces remain "unable or unwilling"
to enter Palestinian refugee camps -- where Al Qaida agents operate -- as
well as Hizbullah strongholds in southern Beirut and the Bekaa Valley.
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