US Secretary of State Colin Powell said Saturday Syria had started to rein in militant Palestinian groups, after he delivered a tough message to President Bashar al-Assad that Damascus must adapt to the new strategic situation brought about by the fall of the Iraqi regime.

Powell also stressed Washington's commitment to brokering a comprehensive peace in the region, and voiced cautious optimism that recent changes would help revive a political process between Israelis and

Palestinians.

Following talks with President Emile Lahoud and Prime Minister Rafiq Hariri in Beirut in the wake of his visit to Syria, Powell told reporters he had also stressed the need for an end to the presence of the militant Shiite Muslim movement Hezbollah in south Lebanon.

And he implicitly called for Syria to end its dominance of its smaller neighbour.

"We have emphasized strongly our concern about the continuing terrorist activities of Hezbollah in the region and around the world," he said.