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Israel has retaliated with airstrikes on targets near two south Lebanese border villages after Hizbollah guerrillas struck Israeli army posts.

There are thought to be casualties on both sides, but precise details are not yet available. It is the most serious incident in the flashpoint Shebaa Farms area since January 9. Then a Hizbollah attack and Israeli retaliatory strikes killed an Israeli officer, a French military observer and a Hizbollah guerrilla.

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