Iraq situation hurting neighbours: Syria

"There is a lot of anarchy in this country and what is happening is affecting its neighbouring countries, especially Syria," Assad said in the interview given to the Chinese press and reproduced in Syrian papers before beginning a five-day visit to China.

He said the US-led war in Iraq had created a more favourable "climate for terrorism in the region.

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"What is happening in Iraq is negatively affecting peace processes, development and the economy and is worrying to Middle Eastern countries," he said.

Asked about sanctions that the United States placed on Syria last month, Assad said they were "part of a new form of international relations, where hegemony and intervention" predominate.

On May 11, US President George W. Bush imposed sanctions on Syria for its alleged support of terrorism and weapons of mass destruction programme.

Adding to existing US terrorism penalties, they include a near-blanket ban on US exports to Syria and the power to freeze Syrian assets in the United States.

Assad said Syria was still working to establish a stable relationship with the United States, and that negotiations were still underway.

He also said peace negotiations between Syria and Israel had been on hold since 2000 because Israel rejected "every proposition in favor of peace as well as the return of (occupied) land."