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Lebanese militant group Hizbollah has rejected international ceasefire proposals as rockets have continued to rain down in Beirut and in Israel. By nightfall, 209 people in Lebanon and at least 24 Israelis were reported killed in six days of fighting.
Tony Blair has called for an international force to be sent into Lebanon to help calm the situation.
In Beirut, British citizens have begun to be evacuated. There are still about 10,000 British passport-holders in Lebanon - and the Government says the next couple of days could see the biggest evacuation of Britons since Dunkirk.
The six-day-old offensive against Hizbollah began in response to the seizure of two Israeli soldiers by guerillas.
Hizbollah spokesman Hussein Haj Hassan rejected ceasefire proposals put by international diplomats, saying they were "israeli conditions".
Israeli prime minister Ehud Olmert said in an impassioned speech to his parliament that the missile attacks would only stop when the two kidnapped soldiers were handed back, Hizbollah stopped firing rockets and the Lebanese army deployed along the border.
He said: "We shall seek out every installation, hit every terrorist helping to attack Israeli citizens, destroy all the terrorist infrastructure, in every place.
"Israel will not agree to live in the shadow of the threat of missiles or rockets against its residents."