WASHINGTON (Reuters) - The United States on Friday designated al-Manar television -- the mouthpiece of Lebanon's Hizbollah anti-Israel guerrillas -- a terrorist organization, prompting an end to its U.S. satellite transmissions.

Lebanon's ambassador called the designation unacceptable censorship and an attack on freedom of speech.

The State Department listing came less than a week after France banned broadcasts of al-Manar's satellite channel following accusations that its programs were anti-Semitic and could incite hatred.

The United States already considers Hizbollah a "foreign terrorist organization."

"The designation is to put al-Manar television on the Terrorist Exclusion List because of its incitement of terrorist activity," said State Department spokesman Richard Boucher.

In response to the new designation, al-Manar was removed from the satellite which beamed it into the United States on Friday, the satellite's owner Intelsat told Reuters.

In Beirut, al-Manar accused the State Department of attacking freedom of expression and indulging in "intellectual terrorism against those voices which do not go along with American and Israeli policies."

The decision "contradicts all claims and slogans which the U.S. administration raises to promote what it calls freedom and democracy in the Arab world," a statement said.

The station is a licensed media organization under Lebanese law and not a political organization, the statement added.

Placing al-Manar on the State Department's "Terrorist Exclusion List" means foreigners providing support to or associated with the organization may be prevented from entering the United States or may be deported.

"For example, an alien would be found inadmissible ... if the alien is a member of al-Manar, if a person solicits funds or other things of value for al-Manar, if he provides material support to al-Manar or solicits any individual for membership in al-Manar," Boucher said.

Hizbollah's long-standing designation as a "foreign terrorist organization" has broader legal ramifications, such as a ban on material support by anyone in the United States, including money and lodging. U.S. financial institutions must also block funds of designated FTOs and their agents.

'TERRORIST ORGANIZATION'

The official State Department notice of the designation specified that al-Manar was considered a "terrorist organization."

This may only be the first step. For example, the Treasury could decide to include al-Manar on its terrorism blacklist, blocking its assets and making any financial dealings with the channel illegal. A Treasury spokeswoman declined to comment on any possible designation.

Lebanon's ambassador to Washington, Farid Abboud, said his country strongly disagreed with the new designation.

"If you want simply to demonize or eliminate one side, you're not going to advance the issue," he said. "If you are going to focus on one side simply because of the political message, it's unacceptable and it's a grave breach of the freedom of speech."

Boucher said: "It's not a question of freedom of speech; it's a question of inciting to violence. And we don't see why here or anywhere else a terrorist organization should be allowed to spread its hatred and incitement through the television airwaves."

On Monday, a French court ordered the French-based Eutelsat company to shut down al-Manar broadcasts.

Al-Manar voluntarily stopped its broadcasts there, but says the French decision was political and not legal, influenced by Israel and Jewish lobbies. It plans to pursue its case to restart broadcasts in France. The ruling has been widely condemned in Lebanon. (additional reporting by Joseph Logan in Beirut and Mark Felsenthal in Washington)