Israel yesterday deepened its occupation zone in southern Lebanon, fencing off and erecting a permanent military position alongside Arnoun - a village it says has been used by Hizbullah guerrillas to launch a series of attacks on its forces.
The Lebanese government has appealed to the United Nations, the United States and European leaders to intervene, and Hizbullah has warned that it will react to the "provocative" Israeli action.
But Israel's Prime Minister, Mr Benjamin Netanyahu, defended the takeover of the village, which lies about four miles north of the international border, saying the Hizbullah attacks had to be stopped.
Israeli military sources say the roadside bomb near Arnoun which killed an Israeli soldier on Monday was planted by Hizbullah fighters who took refuge in the village.
Israeli troops and members of the Israeli-funded and trained South Lebanon Army (SLA) moved into Arnoun, blocked entry roads, and moved from house to house in search of Hizbullah fighters and weaponry. They detained several residents.
Backed up by tanks, the soldiers ringed the village with barbed wire fencing and erected a military outpost, which is to be manned by SLA troops. Journalists who tried to approach the village yesterday were warned off by the SLA forces, who then used smoke grenades, tear gas, and rubber bullets to keep the reporters away. A cameraman was reportedly grazed in the back.
Israel had fenced off Arnoun two months ago, but the fencing was pushed aside during a large demonstration by students from all over Lebanon. Many villagers have now left Arnoun, and more were leaving yesterday, anticipating Israeli-Hizbullah clashes in the area. Those remaining will now have to pass through the new checkpoint when entering or leaving.
The takeover of Arnoun comes at a time when the Israeli government is loudly contemplating reducing the number of troops it deploys in its self-declared south Lebanon "security zone" - a buffer area designed to prevent Hizbullah targeting residential areas inside Israel. There have even been reports that Mr Netanyahu is trying to engineer a full withdrawal from Lebanon ahead of next month's elections - a sure vote-winner, if it can be carried out smoothly.
However, Mr Moshe Arens, Israel's Defence Minister, said flatly yesterday that, come May 17th, election day, the Israeli army would still be deployed inside Lebanon.
Mr Netanyahu, meanwhile, is keeping silent on claims that he is allowing Jewish settlers to establish 30 new settlements in the occupied West Bank, in exchange for their support in next month's elections.
The Peace Now monitoring group has identified at least 15 settlements that have been set up in the West Bank in the past few months, and an Israel Army Radio report has indicated that another 15 will be established in the next few weeks, as settlers stake claims to West Bank land ahead of possible further territorial compromise with the Palestinians.
The latest settlement drive is infuriating the Clinton administration. On Wednesday the State Department spokesman, Mr James Rubin, accused Mr Netanyahu of breaking pledges not to set up new settlements in the West Bank, where between 150,000 and 200,000 Jews now live.
Mr Netanyahu's office has reiterated the government's support for settlement expansion, but a spokesman has claimed the "new" settlements are actually new neighbourhoods located within existing settlement boundaries. On a West Bank tour this week, Mr Netanyahu pledged to "do a lot more" for settlers.
Polls in yesterday's two main tabloid dailies show Mr Netanyahu lagging behind Labour opposition leader Mr Ehud Barak - by 5 per cent in one survey, 7 per cent in the other - with a month to go until the elections.
In Beirut, Hizbullah pledged to teach Israel an "unforgettable lesson" for its takeover of Arnoun. "The resistance will teach the enemy an unforgettable lesson to prevent it from doing the same in Arnoun or any other place," Hizbullah said.