CANBERRA, July 14 -- Australian Prime Minister John Howard on Friday called for restraint from both Israel and Hezbollah guerrilla in recent military actions and an end to violence.

Howard told Southern Cross radio that Israel's military attack could lead to fall of the current Lebanese government and the rise of Hezbollah.

Israeli army has launched a series of air raids on Lebanon, destroying many civil targets, including Beirut's international airport, in retaliation against Lebanon-based militant group Hezbullah's abduction of two Israeli soldiers on Wednesday.

Howard described Israel's reaction to the Hezbollah raids as justified, but saying there are much broader considerations for achieving peace in the region.

The prime minister said any lasting peace in the area is based on both a full and unconditional acceptance of Israel by its neighbors and a recommitment to the emergence of an independent Palestinian state.

He stopped short of saying Israel has overreacted.

"I want both sides to exercise restraint," he said