Arab summit says peace offer is under review

DAMASCUS (Reuters) - A two-day Arab summit, subdued in the absence of leaders critical of Damascus, ended in the Syrian capital on Sunday with a warning to Israel that an Arab peace offer depends on Israeli behavior.

Arab governments will review their strategies on peace with Israel, a statement added. It did not say what options were under consideration or when the review would take place.

"The continuation by the Arab side to present the Arab peace initiative is tied to Israel executing its commitments in the framework of international resolutions to achieve peace in the region," a Damascus Declaration said.

The Arab peace initiative of 2002 offers Israel peace and normal relations with all Arab countries in return for withdrawal from all territory captured in the 1967 war.

Successive Israeli governments have either ignored or rejected the offer, which would require Israel to dismantle settlements which house hundreds of thousands of Jews.

The statement, read by Arab League chief Amr Moussa, added: "(The Arab heads of state decided) to evaluate and review Arab strategies and the plan of action regarding reviving the peace process as a prelude to decide on next Arab moves."

Although it did not set a time frame, Moussa has said Arab foreign ministers will start a review in the middle of the year.

The language on the Arab peace plan was not a surprise as it was almost identical to that of a decision approved by Arab foreign ministers at a meeting in Cairo three weeks ago.

Moussa and other Arab officials have said that withdrawing the peace plan is not an option and in public they have not proposed alternatives.

Lebanon boycotted the Damascus summit in protest at what it says is Syrian obstruction, through its local allies, of the process of electing a new Lebanese president.

Three key Arab heads of state -- the leaders of Saudi Arabia, Egypt and Jordan -- also stayed away from the summit, in solidarity with the Lebanese government.

On Lebanon, the Damascus Declaration broke no new ground, saying the Arab leaders stand by an Arab initiative which endorses army chief Michel Suleiman as a consensus candidate.

The Lebanese government and the opposition, which is allied with Syria and Iran, agree on Suleiman but disagree on whether the opposition forces should have veto power in a new cabinet.

The declaration said: "We declare that ... we stand by the Arab initiative to help Lebanon and support the efforts of the (Arab League) secretary general to encourage the Lebanese parties to reach consensus to resolve this crisis to preserve Lebanon's security, unity, stability and prosperity."

(Additional reporting by Khaled Yacoub Oweis, Writing by Jonathan Wright; editing by Sami Aboudi)