Hezbollah leader Sheikh Hassan Nasrallah has criticized a US arms deal with Arab countries, saying Washington seeks to drown the Mideast in wars.

Nasrallah was referring to a proposed US plan announced earlier this week to sell advanced weaponry worth at least USD 20 billion to Persian Gulf nations and provide new 10-year military aid packages to Israel and Egypt.

"The United States is bringing billions of dollars worth of arms to ignite wars in this region,'' Nasrallah said in a speech beamed through giant television screens to hundreds of thousands of supporters in eastern Lebanon's city of Baalbek.

"The American administration is working on instigating sectarian strife and civil wars in Palestine, Iraq, the Persian Gulf and… between the countries of this region.''

The Hezbollah leader also said his party was ready for a settlement of the political crisis in Lebanon, vowing that his group would not use its arms to resolve the issue.

"We are ready for a settlement internally," he said.

"Lebanon cannot be divided, either practically or objectively. And we do not seek to control the government, or control the state," he said.

"We are looking for a united and unified country which will protect Lebanon at a time ... the US Administration is seeking to plant discord."

Nasrallah said "our campaign is peaceful, civilian and civilized."

He also said the United States was trying to intimidate the Lebanese people by taking punitive financial action against opponents of the Western-backed Beirut government.

Nasrallah said US President George W. Bush was doing all he could to protect the governing coalition. Siniora's government has become a part of US national security, he said.

"Bush comes out and says: 'You Lebanese, whoever shakes the Siniora government, I will act against legally, financially and economically'," Nasrallah said.

"Bush ... considers the Siniora government part of American national security and part of American policy. Oh Lebanese, we are demanding a government which (represents) Lebanese national security and not American national security." He said.

MRI/HAR