According to the Syrian website Syrian-news.com, known to be close to the government, “knowledgeable sources have said that Syria and U.S. Democratic presidential candidate Barack Obama are both using the services of economic expert Hernando de Soto, who recently visited Syria.

“De Soto, winner of the Nobel Prize for Economics, has agreed to head a project to regularize Syria's informal economy which constitutes 40% of Syria's economy.

"Later, de Soto agreed to serve as economic advisor to Obama, who told him, ‘No problem, Syria and I will share your services.’

“De Soto visited Syria in June, and will visit there again in mid-September.”

[MEMRI note: De Soto is not a Nobel laureate; he was a 2002 Nobel finalist.]

Source: Syria-news.com, August 31, 2008

Arab sources are reporting that Hizbullah recently received advanced Iranian missiles capable of striking deep into the Israeli heartland.

The London daily Al-Quds Al-Arabi reported that Iran had obtained special aid for Islamic Jihad in Gaza, with the aim of harming the ceasefire between Hamas and Israel.

The Kuwaiti daily Al-Siyassa reported that Hizbullah was surveying along the western Lebanon mountains, from Mt. Al-Baruk to the Mt. Sanin peaks, and was setting marks where it plans to position a network of antiaircraft missiles.

The paper added that Iranian experts who arrived in Lebanon were helping Hizbullah with the surveying, and that it was being carried out following information obtained by Lebanon from Arab and foreign diplomats that Israel was planning to attack Hizbullah in November.

Source: Al-Quds Al-Arabi, London, August 29, 2008; Al-Siyassa, Kuwait, August 28, 2008

In response to statements by Russia's deputy ambassador to Damascus that Russia's military presence in the Middle East is about to become eternal, Syrian sources said that Russia-Syria relations were becoming stronger and that Syria was interested in strengthening its military defense capabilities in order to improve its standing in negotiations with Israel.

Source: Al-Sharq Al-Awsat, London, August 29, 2008

Cartoonist: Omaya Joha

Source: Al-Hayat Al-Jadida, Palestinian Authority, August 28, 2008

Egyptian Foreign Minister Ahmad Abu Al-Gheit has said that Egypt-Syria relations have not been severed, but are continuing on the security level.

Nevertheless, Al-Gheit said during his visit to Beirut that a date had not been set for him to visit Damascus.

Source: Al-Liwaa, Lebanon, August 28, 2008

Source: Al-Mustaqbal, Lebanon, August 29, 2008

High-level French sources have said that France is likely to rescind its decision to normalize relations with Syria if Syria harms Lebanon's stability and security, and that Damascus is showing no flexibility in the issue of demarcating the borders in the Shab'a Farms region.

French Foreign Minister Bernard Kouchner expressed concern over three refugee camps in Lebanon ruled by extremist Palestinian organizations which are in turn run by Syria.

Source: Al-Sharq Al-Awsat, London, August 29, 2008

According to a report on Islamonline.net, the Al-Azhar Fatwa Committee has issued a fatwa permitting the hacking of American and Israeli websites that harm Islam and Muslims, and also permitting damaging them, as part of "electronic jihad."

TO VIEW THE FULL REPORT, VISIT http://www.memriiwmp.org/content/en/report.htm?report=2849.

A Lebanese Army helicopter was forced to land in the Al-Tafah region in southern Lebanon yesterday, after it was fired upon.

The pilot was killed and another man in the helicopter was wounded in the incident.

The Lebanese Army announced that "armed elements" had fired on the helicopter.

Sources close to Hizbullah told the Lebanese website Now Lebanon that Hizbullah members fired on the helicopter because it entered an area sensitive to Hizbullah where a junction of its communications lines was located.

The sources said that Hizbullah had previously warned the Lebanese Defense Ministry and the army against entering this area.

Hizbullah was maintaining silence and senior officials in the organization refused to comment on the incident.

Immediately after the incident, a joint Hizbullah-Lebanese Army investigative committee launched an extensive investigation.

Sources: Al-Mustaqbal, Al-Akhbar, Lebanon, August 29, 2008; Nowlebanon.com, August 29, 2008

On vulture: "Terrorism."

Cartoonist: Stavro Jabra

Source: Al-Jarida, Kuwait, August 28, 2008