Israel Mourns, Hezbollah Exults

Even here, however, the deal had its critics. Shalom Millo, owner of a hardware store beneath the Regev home, said Olmert had blundered by giving up Kuntar in exchange for two dead men.

"If they didn't have a sign of life, Olmert shouldn't have done the swap," Millo said, angrily pounding his fist on the counter. "You don't trade bodies for live prisoners."

A short drive away, relatives of Danny Haran said they felt betrayed by their government. Haran was killed along with his 4-year-old daughter during Kuntar's 1979 raid. Another daughter, who was 2, died when her mother accidentally suffocated her while trying to keep her quiet. A policeman was also killed in the attack by Kuntar, who was 16 at the time, and who has said he was trying to take hostages to win the release of Palestinian prisoners.

"I feel that this is a victory for terror," said Ron Keren, a brother of Haran. "We all know that this story is not over, and we will hear from him more in the future."

Standing in her living room and pointing to pictures of the son and two granddaughters she lost in Kuntar's attack, 82-year-old Nina Keren said she could not understand how Lebanon could hold a rapturous welcome for the man who had destroyed so much of her family: "He's a hero? Because he killed a 4-year-old? Because he smashed her head with his rifle?"

Kuntar was supposed to spend the rest of his life in prison but instead walked free with four Lebanese veterans of the 2006 war late Wednesday afternoon.

Although Kuntar's attack predated Hezbollah's existence and he has not identified with the group, Hezbollah rolled out a red-carpet welcome for him and the four others, who are said to be the last Lebanese prisoners held by Israel. Appearing at an elaborate ceremony in the border town of Naqoura, Kuntar wore the same uniform as the released fighters, along with a cap with the Hezbollah logo.

"Lebanon is shedding tears of joy," said a banner that also featured a picture of Olmert with his hand on his forehead and the caption, "Humiliation guaranteed."

Along with members of Hezbollah, many Palestinians also gathered in Naqoura, hoping to determine whether missing loved ones are among 199 bodies of Lebanese and Palestinian fighters that Israel returned on Wednesday. Killed during various conflicts over the past several decades, the bodies had been buried in Israel and were exhumed for the exchange.

"Dead or alive, any trace of him would be a blessing," said Fatima Alwane of her husband, Abdallah, a Palestinian fighter and the father of her 11 children. He disappeared in 1982, she said.

Kuntar and the released Hezbollah fighters were flown to Beirut, where they were greeted by top officials.

"Our joy will be complete when we achieve the liberation of all our land," said President Michel Suleiman at the airport, referring to a small parcel of land that remains in dispute along the Israel-Lebanon border.

Hamas, the armed Islamist movement that controls the Gaza Strip, also celebrated the exchange and said it had been encouraged by Hezbollah's success to "capture Zionist soldiers, in order to swap them with our sons in prison."

Hamas already has one Israeli soldier in custody, Gilad Shalit. He is believed to be alive, and Israel has been trying to negotiate his release.

Ibrahim reported from Naqoura.