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* Anti-Assad revolt has failed, government says

* Troops must pull back gradually to maintain security

* Friends of Syria conference to back Annan plan

* US, Gulf states urge Annan to set timeline for next steps

By Douglas Hamilton and Erika Solomon

BEIRUT, March 31 (Reuters) – Syria says a year-long revolt

to topple President Bashar al-Assad is now over, but it will

keep its forces in cities to “maintain security” until it is

safe to withdraw in line with a U.N.-backed peace deal.

The agreement proposed by United Nations-Arab League special

envoy Kofi Annan says the Syrian authorities must be first to

withdraw troops, and stop violence immediately.

The United States and its Gulf Arab allies urged Annan on

Saturday to set a timeline for “next steps” if the bloodshed

persists. Saudi Arabia repeated a call for rebels to be armed.

Annan has said neither measure would be helpful. The former

U.N. chief’s mission has brought no respite in the killings.

Opposition activists reported 21 people killed and five

bodies found bearing signs of torture, including two children.

A protest singer in Kafr Ruma was killed when his house was

raided. A young man and his sister were shot dead when state

forces stormed their village, and a man died of gunshot wounded

inflicted during a protest in Damascus.

Army artillery and mortars pummelled the Khalidiya district

of Homs city, killing one. Six deaths were reported in Homs

province, two killed by snipers and two in crossfire.

“Mortars are falling every minute and the sounds of

explosions are shaking the (Khalidiya) neighbourhood,” the

Syrian Observatory for Human Rights said. A child was killed by

rocket fire in the al-Bayyada area of Homs and a man was killed

in crossfire in clashes near a checkpoint.

In southern Deraa province, five were killed by machinegun

fire in Kharbat Ghazaleh and three died from wounds sustained in

clashes on Friday. Rebels killed six soldiers, including a

lieutenant colonel in Deir al-Zor, the Observatory said.

Despite the violence, Damascus says it has the upper hand.

“The battle to topple the state is over,” Syrian Foreign

Ministry spokesman Jihad al-Makdissi told Syria TV late on

Friday. “Our goal now is to ensure stability and create a

perspective for reform and development in Syria while preventing

others from sabotaging the path of reform.”

His assertion follows army victories over rebel strongholds

in the cities of Hama, Homs and Idlib, and Assad’s acceptance

this week of Annan’s plan that does not demand he step down.

The political opposition remains divided and prospects of

Western-led military intervention are close to zero.

WESTERN SCEPTICISM

Assad has endorsed Annan’s six-point peace plan, which has

the U.N. Security Council’s unanimous backing, but Western

leaders say the 46-year-old Syrian leader has broken similar

promises before and must be judged by actions not words.

Assad’s opponents have not yet formally accepted the plan.

They were due to meet the foreign ministers of allied

Western powers, including U.S. Secretary of State Hillary

Clinton, on Sunday at a “Friends of Syria” conference in Turkey,

which provides a safe haven for Syrian rebels.

After Clinton met Gulf foreign ministers in Riyadh on

Saturday, they said Annan should set a timeline for unspecified

measures should his efforts fail to halt the bloodletting.

“Given the urgency of the joint envoy’s mission, (U.S. and

Gulf ministers) urged the joint envoy to determine a timeline

for next steps if the killing continues,” a statement said.

Saudi Foreign Minister Saud al-Faisal told a news conference

with Clinton: “The arming of the opposition is a duty, I think,

because it cannot defend itself except with weapons.”

Syria’s Makdissi said Annan, who met Assad in Damascus on

March 10, had acknowledged the government’s right to respond to

armed violence during the ceasefire phase of the peace plan.

He said Syria’s conditions for agreeing to Annan’s plan

included recognition of its sovereignty and right to security.

“When security can be maintained for civilians, the army

will leave, he said. “This is a Syrian matter.”

However, Annan’s plan says Syria must stop putting troops

into cities forthwith and begin taking them out.

“The Syrian government should immediately cease troop

movement towards, and end the use of heavy weapons in,

population centres, and begin pullback of military

concentrations in and around population centres,” it states.

It says Syria should work with Annan to achieve a sustained

end to violence by all sides under U.N. supervision.

The U.N. peacekeeping department will send a team to

Damascus soon to begin planning for a possible ceasefire

observer mission, Western diplomats said on Thursday, adding

that it was unclear the 200 to 250 monitors envisaged would ever

be deployed. “We are very far from a peace to keep,” one said.

SEQUENCING A CEASEFIRE

Western diplomats say the key to any ceasefire deal lies in

the sequencing of the army pullback and ending rebel attacks.

They say the opposition won’t feel safe negotiating before

the army stops shooting, but also note it would be impractical

to expect a complete government pullout before rebels respond.

In 2011, an Arab League observer mission sent to oversee the

promised withdrawal of the army from cities collapsed partly

over the issue of when and how troops could be withdrawn.

More than 9,000 people have been killed by Assad’s forces

during the revolt, according to the United Nations, while

Damascus says it has lost about 3,000 security force members.

Western and Arab foreign ministers backing Syrians trying to

topple Assad head for Istanbul on Saturday for what diplomats

predict will be a challenging “Friends of Syria” conference.

They will seek clear endorsement of the Annan plan from the

Syrian National Council (SNC), although their own governments

are sceptical that Assad will genuinely try to implement it.

In Libya a year ago, the West and the Arabs quickly granted

recognition to a revolutionary national council as the sole

legitimate government of Libya. They are not close to doing the

same for the splintered SNC in Syria, diplomats say.

There is also little chance they will agree to arm rebels.

The Istanbul conference is instead expected to declare

strong support for Annan’s peace proposals, which do not include

an opposition and Arab League demand that Assad go now. It is

expected to demand that he order a ceasefire without delay.

If he does not withdraw his forces, the opposition can

hardly be expected to begin a dialogue with him, diplomatic

sources said. If he does, one question will be how effectively

they can persuade disparate armed rebel groups to stop shooting.

The Istanbul conference may press for immediate steps “to

accept and implement a daily two-hour humanitarian pause”, as

Annan’s plan stipulates, until all fighting ceases.

If Assad fails to keep his word, Annan would have to decide

whether to call time and tell the United Nations he has failed

to make peace through a “Syrian-led process”.

The issue would then return to the U.N. Security Council,

with increased pressure on Assad’s allies Russia and China,

which have endorsed Annan’s mission, to get tough with Damascus.

Russia, however, has warned in advance that it is not up to

the “self-styled friends of Syria” to pronounce on Sunday on

whether Assad is keeping his part of the Annan deal or not.

Diplomats say “Friends of Syria” powers construe the

carefully-worded terms of Annan’s six-point plan as intending

that Assad will eventually cede power in a political transition.

but the language is nuanced to get a step-by-step process going.