By Lin Noueihed  BEIRUT, July 29 (Reuters) - Victims of war and occupation or traitors who betrayed their country to work with an enemy state?  A spat over the fate of Lebanese former militiamen living in Israel is threatening to reopen old wounds in Lebanon, with Christian leaders demanding they receive an official amnesty and Muslim leaders insisting "collaborators" are punished. Fearing reprisals or heavy punishment if they stayed in Lebanon, some 6,000 members of Israel's defunct proxy militia, the South Lebanon Army (SLA), took their families and fled to the Jewish state with withdrawing Israeli troops in 2000.  Though over half have returned in recent years, many remain in Israel. Parliament passed an amnesty bill this month that freed Christian warlord Samir Geagea and hundreds of Sunni Muslims suspected of links to a failed Islamist uprising in 2000. Christian deputies in the new parliament now want to extend a similar amnesty to those Lebanese who worked with Israeli troops during their 22-year occupation of southern Lebanon. But the proposal has received a frosty reception among many, especially Shi'ite Muslim Hizbollah whose guerrilla attacks were instrumental in ending the Israeli occupation.Christian opposition leader Michel Aoun told parliament on Thursday it was time for those who fled to the Jewish state to come home so Lebanon can turn the page on its troubled past. "Why can't we bring back the thousands of Lebanese refugees in Israel? This issue can only be ended through a parliamentary, judicial inquiry," Aoun said, adding that many had little choice but to work with the Israelis during the occupation. "The people of Jezzine and the border strip paid the price and are now considered collaborators." Some Lebanese who joined the SLA fought against their own country and ran a notorious jail.

WASHINGTON

By Roula Khalaf (Financial Time)  Lebanon's new prime minister is striking a conciliatory tone towards Syria, pledging strong relations in the hope of resolving a border crisis that has led to a virtual closure of traffic to Lebanese trade. Fouad Siniora, picked by the anti-Syrian parliamentary majority that emerged after the April departure of Syrian troops from Lebanon, is expected to travel to Damascus on Thursday after the expected confirmation of his government by parliament. In an interview with the Financial Times, the 62-year-old Mr Siniora said he would not wait until the results of a UN probe into the February assassination of Rafiq Hariri, the former Lebanese premier, before restoring ties with Syria. Damascus' alleged role in the killing is being investigated.