From Haaretz:

Olmert and Peretz met Monday with Chief of Staff Dan Halutz and other senior military and Military Intelligence officials who presented him with their plan for taking control of areas used by Hezbollah to fire its short-range rockets. Under the plan, the IDF will take control of the area south of the Litani River. The military officials also presented Olmert with a plan for an operation north of the Litani, in the area of Ramat Nabatiyeh where rockets were launched into Kiryat Shmona. The operation in Ramat Nabatiyeh, however, is likely to be put off for a later stage if necessary. Olmert gave the military the go-ahead to present the plan to the cabinet, but refrained from expressing his views on it. Olmert said Monday that the Israel Defense Forces would have no limitations in the fight against rocket fire in the north, saying it was unacceptable that so many people were forced to exist in bomb shelters.