Regional manoeuvres culminated in Damascus agreeing 25 November to attend 27 November Annapolis meeting (see Israel/OTs). Deputy FM Faisal Mekdad was present; said Syria willing to normalise ties with Israel but only after “full Israeli withdrawal from the Arab lands occupied in 1967”. Possibility of Israel-Syria talks in Moscow in early 2008 reported. Attendance at meeting followed U.S.-Israeli agreement to broaden agenda to include Golan Heights, and Damascus agreement 9 November to allow U.S. personnel to process Iraqi refugees in Syria for U.S. admission. France engaged extensively throughout month to secure Syrian cooperation in mediation of Lebanon political crisis (see Lebanon). Iraqi Finance Minister Bayan Jabr visited Damascus 22 November; announced U.S.$15 million grant to assist 1.5 million Iraqi refugees in Syria. Jordan’s King Abdullah II made first visit to Damascus in almost 4 years 18 November.

President Bashar Assad 1 October stated Israeli 6 September airstrike hit unused military building; denied widespread speculation it was nuclear site under development with North Korean assistance. Syria continued to refuse to attend Annapolis peace conference (see Israel/OTs) unless Golan Heights on agenda. Damascus ended suspension of new visa rules for Iraqis 1 October.

Tensions rose as Israeli airstrike hit north Syria 6 September. Israel refused to comment, imposed wide-reaching military censorship; but Isareli opposition leader Binyamin Netanyahu congratulated PM Olmert on raid 20 September. Damascus denied and many analysts sceptical of reports that strike targeted nuclear weapons activity linked to North Korea. Syrian-Saudi relations further deteriorated as Kingdom rejected proposed visit by FM Walid Muallim. Straining under refugee flow, Damascus introduced visa restrictions for Iraqis 10 September; suspended during Ramadan. Aleppo cleric, Sheikh Mahmoud Abou al-Qaqa, accused of recruiting insurgents to fight U.S.-led forces in Iraq, shot dead 28 September.

Iraqi PM Nouri Maliki visited Damascus 19-21 August, following restoration of diplomatic ties last year. Discussion included border security and Iraqi refugees. Saudi Arabia and Syria exchanged sharp criticisms over regional roles, highlighting tensions.

Syrian-Israeli peace talks failed to restart despite public statements of interest by both sides and mediation by Turkish officials and UN envoy Michael Williams. French envoy Jean- Claude Cousseran visited Damascus 18 July to discuss violence and political stalemate in Lebanon, highest-level visit in nearly 2 years. President al-Assad sworn in for second 7- year term 17 July.

Assassination of prominent Lebanese MP Walid Eido prompted increased speculation over Syria’s destabilising role in Lebanon. Israeli media reported Israeli PM Ehud Olmert secretly sent messages to President Bashar Assad offering full withdrawal from Golan Heights in exchange for full peace. Deputy PM Shaul Mofaz confirmed Israel approach on possible renewal of talks.

Parliament nominated President al-Assad for second term, endorsed in 27 May referendum with 97% of vote. Syrian FM Walid Muallem and U.S. Sec. State Rice met on sidelines of regional conference on Iraq in Egypt 3 May in highest-level contact in 2 years. Dissident Kamal Labwani and prominent political writer Michel Kilo sentenced to 12 and 3 years in prison respectively.

Syrian-American businessman, Ibrahim Suleiman, appeared before Israeli parliament foreign affairs committee 12 April to encourage peace talks. Lawmakers reacted positively. Official Israeli position still insists Syria end support for Hamas and Hizbollah as precondition. High-profile U.S. delegations to Damascus continued with 4 April visit by House Speaker Nancy Pelosi. Bush administration criticised visit and stepped up condemnation of Syria after 24 April sentencing of human rights leader and 22/23 April parliamentary elections: low turnout reported, ruling Baath Party won overwhelming majority.

In first visit in 2 years EU foreign policy chief Solana urged Damascus to play positive role in Lebanon and Iraq and expressed support for Syria’s aim of regaining Golan Heights. Kurdish political groups planned to boycott 22 April parliamentary elections alleging 100,000 Kurds not allowed to participate; majority of opposition parties also not contesting poll. 10,000 candidates due to contest 250 parliamentary seats; 167 reserved for ruling Baath party and allies.

U.S. Sec. State Rice reportedly warned Israel against peace talks with Syria after offers by President Bashar Assad. Rice allowed U.S. embassy to start dialogue with Damascus over Iraqi refugees before late-month policy shift to attend conference, including Syria, to discuss Iraq security crisis.