"One of the conditions of continued economic development in Syria is peace and security in the region," Fillon told an economic forum in Syria's capital Damascus.

"If France decides to resume and strengthen dialogue with Syria, it will be because we believe Syria has a key role in establishing peace in the Middle East," the French prime minister said.

"What must prevail is truth and transparency. To improve the situation, everyone must make an effort."

Fillon, the first French premier to visit Syria in more than 30 years, singled out the standoff between world powers and Syria's ally Iran over Tehran nuclear drive as an issue in which Damascus can play a positive role.

"Peace requires a change in attitude of the Iranian government," Fillon said, adding that "Iran is not complying with international rules and constantly violates UN Security Council resolutions."

"We have reached out to the Iranian government without success" so far, he said, referring to Tehran's rejection late last year of an offer from the UN atomic watchdog regarding the enrichment of uranium by the Islamic republic.

"We hope that Syria will help us in this effort for Iran to renounce decisions that endanger world peace," Fillon said.

He also said he had asked for Syria's help to obtain from Iran the release of French academic Clotilde Reiss who was arrested after the disputed June re-election of Iranian President Mahmud Ahmadinejad.

"Clotilde Reiss is unjustly detained in Iran... and should therefore be freed as soon as possible without any preconditions," Fillon told a joint news conference with Syrian counterpart Naji Otri.

"That's the message that we are sending to the Iranian government and I would like once again to thank President Assad for having helped us in relaying this message," he added.

Reiss was accused of acting against Iranian national security by handing reports and photographs to the French embassy about the protests that followed Ahmadinejad's re-election.

She was released on bail on August 16 on condition that she stay in the French embassy and not leave the country and Sarkozy has thanked Syria for its assistance in persuading Iran to grant her bail.

Fillon met Syrian President Bashar al-Assad during the 24-hour visit to Damascus and late Saturday he travelled to neighbouring Jordan where on Sunday he will hold talks with Jordanian King Abdullah II and top officials.

In Damascus Fillon said France also was "very attentive" to Palestinian reconciliation between the Islamist group Hamas and Fatah, which dominates the Palestinian Authority led by president Mahmoud Abbas.

He added that France also was "available" to facilitate dialogue between Syria and Israel with Turkish mediation.

"We will do all that is necessary for the resumption of the dialogue," he said.

The last round of Turkish-mediated indirect peace talks between Syria and Israel collapsed in December 2008, and the two neighbours have been locked in a recent war of words.

Fillon also called for "a process of disarmament" for all militias in Lebanon, clearly alluding to Hezbollah, which is backed by Syria and Iran.

Fillon arrived Friday in Damascus, accompanied by Economic Minister Christine Lagarde, Culture Minister Frederic Mitterrand and a delegation of French businessmen.

Paris hopes to build economic ties with Syria at a time when the country is opening up more and more to foreign investments as part of its reforms.

Ties between France and Syria have warmed since Assad paid a landmark visit to Paris in 2008 for Bastille Day. French President Nicolas Sarkozy went to Damascus two months later, and Assad revisited Paris last November.

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