"They simply are demanding that we surrender, they want Beirut to raise white flags... This is impossible," he told a news conference in his first public appearance since Hezbollah swept through Sunni-dominated areas of the capital last week.

"They will not be able to obtain Saad al-Hariri's signature... on a deed to surrender to the Iranian and Syrian regimes," he said.

Hariri's Future TV, forced off the air during the battles, resumed broadcasting shortly before the news conference.

Lebanon's army earlier stepped up patrols as part of a drive to restore order after a week of fighting between Hezbollah fighters and gunmen loyal to Hariri and his allies.

Hezbollah, the Shi'ite Muslim movement backed by Iran and Syria, and its opposition allies have routed supporters of the Sunni-led government in Beirut and hills to the east in fighting that has pushed Lebanon to the brink of a new civil war.

Wary of fragmenting its own ranks, the army has stayed neutral in the conflict, which has killed 81 people, wounded 250 and raised Arab and international concern over Lebanon's future.

Police said 62 dead had been registered, but police sources said they believed the actual toll was higher.

Overall, Lebanon experienced its calmest day since violence broke out on May 7 after Prime Minister Fouad Siniora outlawed Hezbollah's communications network and fired Beirut airport's security chief, who is close to the Shi'ite group.

Hezbollah said this was a declaration of war and swiftly took over much of Beirut, crushing pro-government Sunni Muslim gunmen. It then handed over its gains to the army.

The army launched its plan to get gunmen off the streets at 6 a.m. (11 p.m. EDT on Monday). The initiative was not seen as a challenge to Hezbollah, which has avoided any friction with the army.

SETBACK FOR U.S. POLICY

Hezbollah's success so far has sapped the credibility of the Siniora government and its main patron, the United States, which says the group is a tool for Iran and Syria to wield influence.

Saudi Arabia said that if Iran endorsed Hezbollah's actions it would affect the Islamic Republic's ties with the Arab world.

"Of course, for Iran to back the coup that happened in Lebanon ... will have an impact on its relations with all Arab countries," Saudi Foreign Minister Saud al-Faisal, whose country strongly supports Siniora's government, told a news conference.

In Tehran, Iranian President Mahmoud Ahmadinejad denied his country was meddling. "Iran is the only country not interfering in Lebanon," he told a news conference.

Troops took over more positions held by Druze forces loyal to pro-government leader Walid Jumblatt, whose mountain fiefdom east of Beirut was attacked by Hezbollah on Sunday.

"The security situation in the mountain is stable after the army move," said Akram Shuhayeb, a lawmaker and Jumblatt aide.

But in the hill resort town of Aley, a grocer named Wassim Timani, who is loyal to Jumblatt, was not so sure.

"The army's presence here is only for show. It won't be able to do anything if the truce is violated," he told Reuters. "We have shown it all respect but we will not hand over our guns."

The army also expanded its presence in the northern city of Tripoli after small-scale clashes overnight.

Even if the army manages to halt all fighting, it has no plans to remove street barricades set up by the Hezbollah-led opposition to paralyze Beirut port and airport, and ratchet up pressure on the government to bow to its political demands.

U.S. President George W. Bush is to consult allies on how to assist Lebanon when he visits the region this week. He pledged more aid to help the Lebanese army defend the government.

Yet no one in Lebanon believes the army has the ability or desire to tackle Hezbollah or to side decisively with the U.S.-backed government in a society whose Sunni, Shi'ite and Christian components are split roughly down the middle.

Bush will travel to Israel, Saudi Arabia and Egypt, starting on Wednesday, and plans to meet Siniora in Egypt on Sunday.

Foreign support for the government has failed to deter Hezbollah from proving that it can call the shots on the street.

The government has for 18 months resisted opposition demands for veto rights in cabinet, though Hezbollah has now shown it has the military muscle to block decisions it dislikes anyway.

The government moves to ban Hezbollah's telephone network and sack the airport security chief are already a dead letter.

Political turmoil has left Lebanon without a president since November. Parliament speaker and opposition leader Nabih Berri has postponed until June 10 an assembly session called for Tuesday to elect a head of state. It was the 19th such delay.