Clashes on border with Israel near Shebaa Farms area left approximately 3 dead, including French UN officer. Both U.S. and France said they are closely monitoring drafting of new electoral law, as fair elections in Lebanon will be viewed as key benchmark for April assessment of compliance with UN Security Council Resolution 1559.

Opposition groups from across religious and political spectrum called for end to Syrian interference in country’s domestic affairs, forming united front for first time since civil war began 1975. Syria redeployed troops from northern town Batrun and Beirut’s suburbs and airport to Bekaa valley, closer to Syrian-Lebanese border. Palestinian presidential candidate Mahmoud Abbas and PM Ahmed Qurei made 8 December visit, first by senior Palestinian officials to Lebanon since 1982 Israeli invasion drove PLO out of country.

Syrian interference in Lebanese affairs continued to cause widespread discontent. New Lebanese cabinet, hand- picked by Syria and composed of largely unknown or second- rate politicians, received half-hearted vote of confidence by parliament, with smallest majority since 1990. Strikingly, even Syrian-backed Hizbollah abstained, possibly for fear of alienating own Shiite constituency. UN called for calm along Lebanon-Israel border after Hizbollah sent unmanned drone plane over Israel.

PM Rafik Hariri resigned along with cabinet in protest at parliament’s extension of President Emile Lahoud’s term in office. Pro-Syrian parliamentarian Omar Karami named new PM. Former economy minister Marwan Hamadeh, who also stepped down to protest Lahoud’s extended term, wounded in assassination attempt 1 October. Hariri’s resignation came day after UN Security Council adopted unanimous statement urging Syria to withdraw its 14,000 troops from Lebanon. (See also Syria below.)

Parliament voted 96-29 to pass Syria-inspired constitutional amendment extending term of President Emile Lahoud, sparking resignations of 4 Lebanese ministers. UN passed resolution urging Syria, with 17,000 troops stationed in Lebanon, not to interfere in Lebanon’s domestic politics. Syria responded by announcing partial withdrawal of troops - move unlikely to diminish influence over Lebanese politics. U.S. Assistant Secretary of State William Burns visited Damascus mid-September, pushed for Syrian withdrawal from Lebanon.

Under heavy pressure from Syria, Lebanese cabinet approved bill to amend constitution to allow President Emile Lahoud to stay on as country’s leader after 6-year term ends in November 2004. Bill likely to be approved by parliament in September, despite strong domestic opposition. Newly re-elected leader of Hizbollah, Sheikh Hassan Nasrallah, said German-mediated talks with Israel on possible prisoner exchange continue.

Hizbollah said bomb that killed senior member of guerrilla group in Beirut 19 July planted by Israeli agents. Heightened tensions followed attack, with sides exchanging fire 20 July, leaving 2 Israeli soldiers and 1 guerrilla dead, and with Israeli jets breaking sound barrier over Beirut.

Israeli warplanes struck Palestinian target deep in Lebanon 7 June, hours after rockets fired from Lebanese territory narrowly missed Israeli naval vessel. Sides also exchanged fire along border 20 June.

Soldiers in Beirut killed 5 and injured dozens during protests against high fuel prices and poor state of economy. Unrest worst in decade. Series of clashes along Israeli border 5-7 May, as Hizbollah guerrillas fired shells into northern Israel following Israeli overflights of Lebanese territory. Violence left 1 Israeli soldier dead and 5 wounded. Negotiations on second round of German-mediated prisoner exchange reportedly nearing breakthrough.

Israeli army chief said 26 April second stage of German-mediated prisoner exchange between Israel and Hizbollah progressing and could lead to information on fate of Ron Arad, Israeli airman missing since 1986.