Sharon feared genocide charge over Sabra and Shatila


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RAMALLAH // The Israeli defence minister Ariel Sharon warned his cabinet in 1983 that accepting the findings of a commission examining Israel's role in massacres at two refugee camps could have resulted in genocide charges against Israel, newly released documents show.

For three days in 1982, Lebanese-Christian militiamen scoured the Sabra and Shatila Palestinian camps in Beirut and systematically slaughtered refugees trapped by an Israeli military cordon.

Recently made public by Israel's State Archives, official documents from a cabinet meeting reveal the anxiety experienced by Mr Sharon and fellow ministers in the government of prime minister Menachem Begin over the recommendations that had just been laid out by the Kahan Commission.

Led by Yitzhak Kahan, then president of Israel's supreme court, the commission had found Israeli leaders to be indirectly responsible for the massacres carried out during the height of Lebanon's civil war.

The archives portray a defiant Mr Sharon urging fellow cabinet ministers to reject the commission's findings.

"People wishing us ill, and I've already heard this, will say that what occurred in those camps was genocide," Mr Sharon, then the defence minister, is quoted as saying during the February 1983 cabinet meeting.

The commission's conclusions were particularly damning of Mr Sharon. He was found to have borne personal responsibility "for ignoring the danger of bloodshed and revenge" when Lebanese-Christian militiamen slaughtered some 1,000 Palestinians as their Israeli-soldier allies sealed off the two camps and lit them up by firing flares.

Mr Sharon was forced to resign from his defence ministry position because of the commission's findings.

But during the 1983 cabinet discussion over the findings, he vehemently rejected accusations that he could have anticipated the mass killing of men, women and children when Israeli soldiers allowed the Lebanese militiamen into the camps to snuff out fighters linked to Yasser Arafat's Palestine Liberation Organisation. Sectarian tension had been high because of the assassination in August 1982 of Lebanon's Christian president, which the Phalangist militiamen, also Christian, blamed on the camp's largely Muslim-Palestinian residents.

"I reject the conclusion that there was a constant threat of bloodshed wherever the Phalangists were present," he is quoted as saying in the documents, which were reported by Israel's Haaretz newspaper on Thursday.

He described the militiamen as having "behaved appropriately" during previous joint operations with Israel's military. Israel had invaded Lebanon earlier that year.

Mr Sharon warned during the meeting that the commission's recommendations, which the Israeli government ultimately adopted, compared Israel "to indirect supporters of pogroms, who committed atrocities".

"I am revolted by any hint of such an accusation," he added.

Mr Sharon became Israeli prime minister in 2001 before suffering two strokes and falling into a coma in which he remains.

hnaylor@thenational.ae

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Q1 Suppose you had $100 in a savings account and the interest rate was 2 per cent per year. After five years, how much do you think you would have in the account if you left the money to grow?
a) More than $102
b) Exactly $102
c) Less than $102
d) Do not know
e) Refuse to answer

Q2 Imagine that the interest rate on your savings account was 1 per cent per year and inflation was 2 per cent per year. After one year, how much would you be able to buy with the money in this account?
a) More than today
b) Exactly the same as today
c) Less than today
d) Do not know
e) Refuse to answer

Q4 Do you think that the following statement is true or false? “Buying a single company stock usually provides a safer return than a stock mutual fund.”
a) True
b) False
d) Do not know
e) Refuse to answer

The “Big Three” financial literacy questions were created by Professors Annamaria Lusardi of the George Washington School of Business and Olivia Mitchell, of the Wharton School of the University of Pennsylvania. 

Answers: Q1 More than $102 (compound interest). Q2 Less than today (inflation). Q3 False (diversification).

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