By Corinne Heller

JERUSALEM, Oct 10 (Reuters) Israel said today it would not negotiate with Syria as long as the country continued to back militant groups, rebuffing remarks by Syrian President Bashar al-Assad that he was ready for peace talks.

Assad told the BBC in an interview broadcast yesterday that he was willing to hear if Israel was ready for rapprochement, but questioned whether the government of Prime Minister Ehud Olmert had the strength to move towards peace.

''Israel has always been heavily interested in achieving peace with its neighbours,'' said Miri Eisin, a spokeswoman in Olmert's office. ''Bashar al-Assad has no interest in peace.'' ''He is worried about world reaction to his involvement in funding and backing and safe-havening terrorism,'' she said. ''He should be noted by his actions, not his words.'' The United States and Israel say Syria arms and funds factions sworn to Israel's destruction, such as Lebanon's Hezbollah and the Palestinian Islamic militant group Hamas, whose supreme leader lives in Damascus.

Assad has denied this. He told the BBC Syria had offered Hezbollah political support only and rejected accusations that it was a terrorist organisation. He also said his country would help ensure the Lebanese group did not acquire new weapons.

For Israel to agree to renew negotiations, Syria would first need to change its stance regarding militant groups, Eisin said.

''Simple things -- not allowing all the terrorist organisations to have their headquarters openly in Damascus,'' she said. ''To not have the foreign minister of Syria say he wishes he could be fighting with Hezbollah would be a great step in the right direction.'' Syrian Foreign Minister Walid al-Moualem said during the war between Hezbollah and Israel in July and August that he would be ''ready to be a soldier at the disposal of (Hezbollah chief) Sayyed Hassan Nasrallah''.

Peace talks between Israel and Syria broke down in 2000. Syria seeks the return of the Golan Heights, which Israel captured in the 1967 West Asia War and later annexed in a move not recognised internationally.

REUTERS BDP PM1643