Communicated by Prime Minister's Media Advisor Jerusalem, 31 December 1998 Cabinet Communique   The cabinet met on Thursday, 31.12.98 and decided to adopt the IDF proposal regarding Israel's retaliation policy in Lebanon. Israel will respond to Katyusha attacks on its communities and civilians by attacking targets inside Lebanon, while making efforts to avoid civilian casualties. Israel considers the Lebanese government to be directly responsible for what occurs in southern Lebanon and demands that it end all attacks against Israel. The cabinet supports the IDF and the South Lebanese Army (SLA), and commends the soldiers and commanders for their actions intended to defend the northern border. The cabinet also commends the residents of the northern border communities for their fortitude in facing attacks from Lebanon. Israel will continue to look after the welfare and future of the residents of the security zone and the families of those serving in the SLA.