Lebanese president Emile Lahoud has warned of a "never-ending conflict" in the Middle East.
He says the fighting will continue if Israel does not acknowledge the Palestinians' right to return to their homes.
Mr Lahoud stressed the presence of 350,000 Palestinian refugees in Lebanon has become a major Lebonese concern.
He says there is concern they will stay in the country as part of a final peace settlement.
He says a lasting peace will remain elusive if Israel continues to occupy Arab land "and continues to evade responsibility for the plight of the Palestinian refugees".
"Failing to address the 'right of return' in its purest sense and continuing to negate the aspirations of the Palestinian people to return to their homeland will be a prelude to a never-ending conflict," Mr Lahoud said at an annual reception for Arab and foreign diplomats in Beirut.