UPDATE 1-Assad welcomes talks with opposition, says ambassador

(Adds quotes, detail)

DUBAI, Aug 13 (Reuters) - Syria's government would welcome

dialogue with opposition groups to end the conflict, its

ambassador to Iran was quoted as saying on Monday, but he said

talks must be supervised by President Bashar al-Assad - a

condition rebels are unlikely to accept.

Hamed Hassan said Syria had co-operated to implement the

plan of U.N. peace envoy Kofi Annan but that other countries had

scuppered it, Iran's state news agency IRNA reported.

Speaking in Tehran, he repeated Syria's assertion that it

was being attacked by "terrorist" groups.

"The government of Bashar al-Assad welcomes logical

discussions with opposition groups in Syria," he was quoted as

saying. "The main condition is that these discussions take place

under the supervision of the president."

Rebels waging a 17-month-old armed struggle against Assad's

rule have said they require his departure, making it unlikely

they would accept such an offer of talks.

"With great determination and with unity with the presidency

of Mr. Bashar al-Assad, Syria will continue its campaign against

the terrorist conspiracies," Hassan said.

Syria, allied to Iran, has accused Qatar, Turkey and Saudi

Arabia of helping the rebels in an attempt to create instability

in the country.

"These instabilities do not only threaten the security of

Syria," he said. "They are a serious threat to the security and

calm of the region and in particular some neighbouring

countries."

"Right at the time when everything was going well, the emir

of Qatar made a sly move and said that Kofi Annan's plan had

only progressed 3 percent," Hassan added.

(Reporting By Yeganeh Torbati; Editing by Pravin Char)