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JERUSALEM (Reuters) - Israel set terms for concluding a peace deal with Syria on Thursday, closing ranks with Washington in demanding Damascus distance itself from Iran and stop supporting Palestinian and Lebanese militants.

Coordinated announcements on Wednesday by Israel and Syria that they had begun indirect talks in Turkey, the first confirmation of negotiations between the long-time enemies in eight years, drew a lukewarm response from the United States.

Echoing U.S. comments, Israeli Foreign Minister Tzipi Livni said Israel wanted to live in peace with its neighbors but Syria needed to "distance itself completely" from "problematic ties" with Iran.