What the government of Lebanon needs to do is to reassert is sovereignty. If they do not view Hezbollah actions against Israel as a threat to its sovereignty, then they in effect are accepting Hezbollah actions as legitimate actions of Lebanon. Under these condition Israel is making war against all of Lebanon and the Lebanese army needs to repel Israel. The Lebanese government must be able to militarily evict Israel, and or muster international support, military and or diplomatic, to do so. However, other than Iran, no other Middle Eastern nation are likely to do so. Syria will not risk injury and damage for the sake of Hezbollah, not to mention Lebanon.

However, if the Lebanese government view Hezbollah as a threat to itself as much as Israel's incursion, then there is an opportunity to address both.
Firstly, allow Israel to militarily degrade Hezbollah while responding to the humanitarian crisis and mustering the Lebanese army.
Secondly, broker a deal with Israel with international powers for the Lebanese army to occupy southern Lebanon and assume control from both Israel and Hezbollah. Thus avoiding foreign military forces in southern Lebanon.
Thirdly, disarm a weakened Hezbollah.

Update: From Debka regarding the behind the scene maneuvering in Lebanon with Rice's visit.
Speaking privately to PM Fouad Siniora Monday, July 24, the secretary of state said, according to DEBKAfile’s exclusive Middle East sources: You don’t want to be like the Palestinian Authority which stands by and watches its people go to ruin.

Before taking off for Jerusalem, she also met Nabih Berri, the pro-Syrian Shiite parliamentary speaker. He said later their talks had failed but, according to DEBKAfile, they did arrive at some tactic understandings. Before moving against his Shiite rival Hassan Nasrallah and the Hizballah, Berri preferred to wait for the first cracks to appear in their standing.

The US secretary also interviewed anti-Syrian coalition leaders, known as the “March 14 Camp.” Druze leader Walid Jumblatt remarked that Nasrallah was behaving like Yasser Arafat in the 1982 siege of Beirut. “He is willing to let the Lebanese capital burn while he haggles over terms of surrender.”

The Christian leader Samir Geagea said: The situation is terrible but the calamity has created an opportunity which we must not miss.”

Rice stressed to all her Lebanese interlocutors that the United States had never planned to use Lebanon to fight Iran. Americans, she said, would never forget that Hizballah is a terrorist organization which has murdered Americans and other nationals. Hizballah has a problem not just with the US president but with both houses of congress.

She rejected pro-Syrian leaders’ demand for a ceasefire without first establishing its components. Washington is willing to consider a multinational force, or even a NATO presence, but would insist on the full implementation of Security Council resolution 1559, namely the disarming of Hizballah. This could take place in stages but, first of all, Hizballah must give up its rockets, missiles and heavy weapons.

Condoleezza Rice informed Siniora that she was representing the position President Bush had put before Saudi foreign minister Saud al-Faisal at the White House Sunday, July 23, implying that there was no point in the Lebanese running to the Saudis for help. They would have to cope with the crisis themselves

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