Israel's Barak plays down Syrian chemical arms risk

* Defence minister says he is returning his gas mask

* Old foes pin hopes on Assad's hold on toxic arsenal

JERUSALEM, July 30 (Reuters) - Israel played down on Monday

the risk from Syria's chemical weapons, in what appeared to be a

new tack after threats to take military action to prevent the

arsenal falling into Islamist hands.

Israel has been particularly worried that Hezbollah, the

Iranian-inspired Shiite militia in neighbouring Lebanon, may

gain access to the weapons should Syrian President Bashar

al-Assad's grip slip amid a 16-month-old insurgency.

Israel's warnings on this spread war fears and bumped up

demand for government-issued gas masks.

But since Syria last week acknowledged for the first time

that it had chemical weapons, saying they were secure and would

be used only as a last resort against "external aggression", the

Israelis have been voicing cautious confidence.

"Nothing will happen," Defence Minister Ehud Barak told

Israel Radio in an interview, joking that he would return his

gas mask.

"In my opinion, no one in the world would dare to use

chemical weapons against Israel. So nothing is going to happen."

Israel is believed to have the only nuclear arsenal in the

region - something it has never acknowledged - giving it the

ability to deter or retaliate against any non-conventional

attack.

Hezbollah, a longtime Assad ally, has not commented on the

speculation that it might want Syria's chemical weapons.

Israel and Hezbollah fought an inconclusive 2006 border war.

Barak has since said that in any new conflict Israel would

consider the whole of Lebanon fair game, given the militia's

role in Beirut politics.

Some Israeli officials have also worried that radical Sunni

Islamists among rebels fighting Assad may try to seize Syria's

chemical weapons. Another suggested scenario is that Assad could

use them against Israel in a suicidal last stand meant to secure

his legacy in the Arab world.

Israel is technically at war with Syria and occupies the

Golan Heights that it seized in the 1967 war and later annexed.

But the countries have not directly exchanged fire in three

decades, and a parliamentary briefing last week by the Israeli

armed forces chief about the risk of "uncontrollable

deterioration" in Syria were interpreted by local media as a

caution against opening a new fighting front with Assad.

"As long as the situation in Syria is still within Assad's

control, Israel has no reason to worry," Eitan Haber, former

spokesman for the late Prime Minister Yitzhak Rabin, wrote in

the biggest-selling Israeli newspaper Yedioth Ahronoth.

"As long as they are in charge, the assumption is they will

not use this doomsday weapon - with an emphasis on 'as long'."

(Writing by Dan Williams; Editing by Myra MacDonald)