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Haifa news conference: Amir Peretz, Israeli Defense Minister: For a long, long time the terrorists counted on the weakness of ... that we would be a government that wouldn't act iwth appropriate firmness.

The harm and injury is serious and I wish to send my condolences to those impacted. No one should think, God forbid, that they are sacrificing in vain. I want the families to know tha teveryone who had attacked and harmed the city of Haifa will pay a very expensive price for this.

Everybody who speaks to me, every single citizen who calls me says the same thing -- if we started this war then finish it properly. Finish it.

What I want you to know is this: Hezbollah is extremely surprised. They put a rocket in a home of a family and they are surprised we have dared attack the most sensitive headquarters of Hezbollah. That has never been done in the past.

They are surprised by the determination of the homefront. What do they see? They see a country united and has closed ranks and it's important for this attitude to prevail because this is what will be decided. We now have a situation where the army is fighting for its home. That's the picture. Everyone know we're fighting for our homes. Our famlies are being attacked.

We have also today given our pr omise that every source of firing, irrespective of where the firing comes from, you should know they themselves will be hit. Any source of firing with be dealt with the appropriate force and intensity.

Peretz: We're operating with the highest ethical code. It's not by chance the # of rockets and missiles has gone down because the IDF has located sources of firing and deal with them.

I want you to know so you can be proud of our army. I met iwth a soldier and he said he saw the terrorists with an RPG in one hand and a child in another. AND HE DECIDED NOT TO SHOOT THE TERRORIST.

And I say to you, that is an army of which we can be proud. It's a moral code of a soldier who said he won't shoot because a terrorist is using a child.