Lebanon Economy Slumps as Foes Battle With Tanks and Artillery

President Amin Gemayel’s forces Thursday fought tank and artillery battles with Syrian-backed militias near the Christian president’s mountain stronghold northeast of Beirut.

Fears of a bloody new round of fighting in the 11-year-old civil conflict sent the Lebanese pound to record lows against foreign currencies, and one banker said the country is rapidly approaching total economic collapse.

Syria meanwhile gave a warm welcome in Damascus to Elie Hobeika, a Christian militia leader whom Gemayal’s fighters crushed last week in battles that left more than 350 people dead.

Hobeika signed a Syrian-sponsored peace agreement in December, along with leaders of the two main Muslim militias. Gemayel opposes the plan, which would give more power to Muslims at the expense of the traditionally dominant Christian community.

Hobeika, 29, replied, “Yes,” when he was asked by a reporter whether he would return to Lebanon.

He met with Syrian Vice President Abdel-Halim Khaddam, who “renewed Syria’s support for the Lebanese people in efforts to implement the peace accord,” his aides said.

Hobeika arrived in Damascus Wednesday night, and his movements were guarded by Syrian security men.

Shortly after the Hobeika’s arrival in Damascus was made public, fighting escalated in Lebanon’s Metn mountain province between Gemayel’s forces--from the Lebanese army and his Falangist Party--and Syrian-backed factions.

The rivals traded artillery and tank fire all night in several sectors of the snow-streaked mountains. Police said that five combatants were killed and seven wounded in battles three miles from Gemayel’s hometown of Bikfaya, 10 miles northeast of Beirut.

Fighting in the mountains tapered off at daybreak but increased again later in the day. It began hours after Hobeika’s defeat by Gemayel last week.