American Secretary of State Condoleezza Rice met with Hizbullah party leaders during her surprise visit to Lebanon Monday, The New York Times reported. She also spoke with Lebanese President Michel Suleiman about the future of the eight-square mile Shebaa Farms in the Mount Dov area at Israel's northern border. He has claimed sovereignty over the area.

Her agreeing to speak with leaders of Hizbullah, which the United States has condemned as a terrorist organization, signaled her support of a political compromise that was forged between pro- and anti-Syrian factions in the Lebanese government last month.

Asked about the U.S. position regarding Hizbullah's participation in the next government, Rice said the American policy towards Hizbullah remained unchanged, saying, "We still perceive Hizbullah as a terrorist group." The American government officially has no dealings with Hizbullah.

We still perceive Hizbullah as a terrorist group.

"Congratulations," Secretary Rice said as she shook hands with President Suleiman, The Times reported. His rise to president was seen as a major victory for Hizbullah and pro-Syrian factions, who had brought Lebanon to the brink of civil war for the past 18 months.

Hizbullah briefly seized control over the Beirut International Airport and key sections in the capital before the violence ended with Arab League intervention.

Secretary Rice refused to admit that the compromise was a setback for the United States "Obviously, in any compromise, there are compromises," she said. "But this was an agreement that I think served the interests of the Lebanese people. And since it serves the interests of the Lebanese people, it serves the interests of the United States."

However, the new government still has not agreed on which parties will head certain ministries. The proposed unity government would give Hizbullah enough strength to veto key Cabinet decisions.

Concerning Shebaa Farms, Secretary Rice indicated her opposition towards Israel retaining the area, which in the past has been a frequent target for Hizbullah terrorists.

"The United States believes that the time has come to deal with the Shebaa Farms issue ... in accordance with [UN Security Council Resolution] 1701," Secretary Rice said. The resolution ended the Second Lebanon War and demanded that United Nations Interim Forces (UNIFIL) disarm Hizbullah terrorists. However, leaders of the international force said at the outset they would not try to confront the terrorist organization.