He said a negotiator appointed by U.N. Secretary-General Kofi Annan has been meeting with Hizbullah and Israeli officials.

Nasrallah has offered to exchange the two Israeli soldiers for Arab prisoners in Israeli jails, but Israel has repeatedly refused. Although the U.N. resolution that ended the 34-day war called for the soldiers' unconditional release, Israel has exchanged prisoners in the past.

Speaker Nabih Berri, a Hizbullah ally, has called for a national dialogue among Lebanon's rival political leaders to consider a national unity government and the adoption of a new electoral law to end the political stalemate.

The talks have been postponed until Monday, November 6 because of the absence of several anti-Syrian leaders.

Nasrallah warned that if talks fail, Hizbullah would "go to the streets" to demand a unity government and call for early parliamentary elections

"If dialogue does not result in a government of national unity, we will resort to street demonstrations," Nasrallah warned. "It is our constitutional right, our democratic right to express out opinions in the street."

Hizbullah is calling for the formation of a national unity government to "face up to the challenges with which Lebanon is confronted." It wants the inclusion of other political groups, particularly that of its Christian ally, former General Michel Aoun.

Nasrallah also accused the "ruling majority" of seeking to sow fear among the public by harping on insecurity in the country.

"The ruling majority is weak and frightened," he said. "It has lost all credibility in the street."

Nasrallah said the U.N. resolutions "were for the benefit of Israel and not for Lebanon."

He said Hizbullah, despite attempts to keep arms from being smuggled to the Shiite group, has "regained all its vigor." The group has 33,000 rockets, he said -- up from the 22,000 he said his fighters had on Sept. 22.

"The resistance in Lebanon is strong, cohesive, able and ready, and they will not be able to undermine it no matter what the challenges are," he said.

The Hizbullah chief also accused the United States of being responsible for continued violence in Iraq and Afghanistan, saying U.S. policy in the region has failed.

"Afghanistan is a failure ... In Iraq, there is clear failure on the security, military and political levels ... Who shoulders responsibility? It's the American administration and the occupation forces in control of the situation," he said.

Nasrallah said America's plans in the Middle East face "failure, frustration and a state of collapse," and predicted the U.S. would be forced to leave the region in the future -- just like it left Vietnam after the war there three decades ago.(AFP-AP-Naharnet)