Beirut: Hezbollah's leader Hassan Nasrallah yesterday threatened more rocket attacks on cities in central Israel.

He gave the Lebanese government qualified support to negotiate a peace deal, but suggested tentative Hezbollah promises to disarm would be off if conditions aren't met.

Speaking on Hezbollah television, Nasrallah dismissed a new diplomatic effort by Secretary of State Condoleezza Rice, saying the United States wants the fighting to continue. He insisted his guerrillas were winning the battle with Israel.

Israel has not made a "single military accomplishment" in its 18-day offensive on Lebanon, he said.

He claimed Israel suffered a "serious defeat" in ground fighting around a Lebanese border town from which troops pulled back yesterday, saying they accomplished their mission after a week of heavy battles.

The threat of more attacks deep into Israel came a day after Hezbollah fired one of the most powerful rockets in its arsenal for the first time, one able to reach the outskirts of Tel Aviv. Friday's rocket strike hit outside the Israeli town of Afula, the furthest rocket strike yet.

"The bombardment of Afula and its military base is the beginning. Many cities in the centre (of Israel) will be targeted in the 'beyond Haifa' stage if the savage aggression continues on our country, people and villages," Nasrallah said in a speech aired on Hezbollah's Al Manar television.

Hezbollah has said the strike targeted an Israeli military base, but the rockets fell in an empty field.

Nasrallah dismissed a new diplomatic effort by US Secretary of State Condoleezza Rice, who was headed for Israel yesterday with American proposals for a resolution to the crisis. She was widely expected to come to Lebanon as well, though no stop has been announced.

"Now Ms Rice is returning to the region to try and impose her conditions again on Lebanon to serve her project, the new Middle East and to serve Israel," he said.

He said Israel is ready to stop the fighting, but "the American administration is the one insisting on continuing the aggression against Lebanon".

Nasrallah pledged to cooperate with the Lebanese government, after Hezbollah politicians agreed to a government peace proposal that could lead to the eventual disarming of Hezbollah.

Nasrallah did not mention the proposals specifically. But he suggested that Hezbollah would not follow through with disarmament if the government makes concessions on conditions outlined in the Lebanese proposal.

Most notably, the proposals demand a prisoner swap with Israel and the resolution of Lebanese claims on a patch of land on the border that Israel controls.

Israel has ruled out a prisoner swap and has not said whether it would be willing to reconsider its hold on the Sheba'a farms area.

"We are keen to cooperate with the government," Nasrallah said.

But "for Lebanon to win the battle, it needs political will no less than the will of the resistance fighters in the field. The government is required to act in a way that reflects the Lebanese people's steadfastness and unity," he said.

"We have a historic opportunity in Lebanon to liberate every inch of our land, regain our prisoners and guarantee our national sovereignty, so that our skies, water, land and our people are no longer subject to Zionist violation and aggression," he said.

It was Nasrallah's fourth appearance in a taped television speech since the fighting began, sparked by Hezbollah's snatching of two Israeli soldiers on July 12.

In Beirut, drivers stopped their cars and pedestrians stood in front of shops and cafes to watch the address. Fireworks were set off in the southern neighbourhoods of Beirut, a Hezbollah stronghold, after he finished.

Underlining his significance as the man who holds the key to war and peace, his televised speech on Al Manar TV was picked up live by Israel TV's Channel 2, with instant translation into Hebrew.

The bearded Shiite cleric, wearing his trademark black headdress, said Israel "has not made a single military accomplishment" in its 18-day-old offensive on Lebanon.