WRAPUP 7-Syrian prime minister defects, fighting goes on

* Like other defectors, Hijab is a Sunni Muslim

* Premier's post largely powerless, but symbolic blow

* U.S. says Assad losing control, urges him to quit

* Iranian captives killed, threatened by rebels

AMMAN, Aug 6 (Reuters) - Syria's prime minister fled the

country on Monday, denouncing the "terrorist regime" of Bashar

al-Assad as the United States hailed the highest level

government defection as a sign the Syrian president was losing

his grip.

Riyad Hijab, who like much of the opposition comes from

Syria's Sunni Muslim majority, was not part of Assad's inner

circle, but as prime minister and the most senior civilian

official to defect his departure dealt a symbolic blow to an

establishment rooted in the president's minority Alawite sect.

Opposition figures, buoyant despite setbacks in recent heavy

fighting around Damascus and Aleppo, spoke of an extensive and

long-planned operation to spirit not just Hijab but numerous

members of his extended family across the Jordanian border.

"I announce today my defection from the killing and

terrorist regime and I announce that I have joined the ranks of

the freedom and dignity revolution," Hijab said in a statement

read by a spokesman on Al Jazeera television. "I announce that I

am from today a soldier in this blessed revolution."

While pleased at the evidence that his flight had offered of

despair in high places in Damascus, few rebels seemed ready to

embrace Hijab as an ally, given his decades of loyal service to

the oppressive and corrupt rule of Assad's Baath party.

His departure is also unlikely immediately to weaken Assad's

grip on power. That is rooted in the army and an

Alawite-dominated security apparatus rocked by a bomb last month

that killed top officials, including Assad's brother-in-law.

A spokesman for U.S. President Barack Obama hailed Hijab's

defection as a sign that the 40-year rule of Assad's family was

"crumbling from within" and said he should step down.

Months of predictions of his imminent collapse have yet to

come true, however. Heavy firepower, foreign backing in Tehran

and Moscow and a wariness in the West of the fragmented

opposition have left the 46-year-old president dug in and

fighting back, supported by a religious minority fearful for its

very survival.

One Arab broadcaster quoted Hijab's spokesman as saying he

would head to Qatar. The country is vocal among the

Western-allied, Sunni-led states whose opposition to Assad and

his Iranian, Shi'ite sponsors reflects the regional and

sectarian dimension of a conflict that began 18 months ago with

"Arab Spring" street demonstrations demanding democratic reform.

On Monday, a spokesman for rebel forces around Damascus said

three Iranians out of a group of more than 40 they were holding

captive had been killed in army shelling of rebel positions. He

said the rebels would kill the remaining prisoners if the

bombardment went on.

Iran says the captives were pilgrims travelling to Shi'ite

holy sites. The rebels, who seized them on Saturday, say they

suspect them of being Revolutionary Guards sent to assist Assad.

Iran's armed forces chief Seyed Hassan Firouzabadi warned

neighbouring states against involvement in Syria: "Saudi Arabia,

Qatar and Turkey are responsible for the blood that is being

spilled in Syria," he said.

DEFECTION

Syrian state television said Hijab had been fired, but an

official source in the Jordanian capital Amman said he had been

dismissed only after he fled across the border with his family.

Khaled al-Hbous, a senior figure in the rebel Free Syrian

Army for the area around the capital, said that his fighters had

helped Hijab flee the country: "Between 5:30 and 7:30 this

morning we did it," he told Reuters by telephone. "We secured

his entry to Jordan and the Jordanian army took him from us."

He gave no details - Damascus lies 100 km (60 miles) from

the border - but said more high-level defections would follow.

Fear of reprisals against relatives has, the opposition

says, deterred many senior officials from deserting their posts.

Along with Hijab's family, those of his seven brothers and two

sisters also had to be spirited to safety.

Hijab, aged in his late 40s, was a top official of the

ruling Baath party but, like other senior defectors so far from

the government and armed forces, he was also a Sunni and had

little real authority. Assad appointed Hijab, formerly

agriculture minister, as prime minister in June following a

parliamentary election which authorities said was a step towards

political reform but which opponents dismissed as a sham.

Syrian television said Omar Ghalawanji, previously a deputy

prime minister, had been appointed to lead a temporary,

caretaker government on Monday. He chaired a cabinet meeting at

which all other members were present, it said, denying a rebel

claim that other ministers had also fled.

"Defections are occurring in all components of the regime

save its hard inner core, which for now has given no signs of

fracturing," said Peter Harling at the International Crisis

Group think-tank.

"For months the regime has been eroding and shedding its

outer layers, while rebuilding itself around a large, diehard

fighting force," he said. "The regime as we knew it is certainly

much weakened, but the question remains of how to deal with what

it has become."

BOMB BLAST

A bomb hit the Damascus headquarters of Syria's state

broadcaster, but injuries were minor and transmission continued.

Rebels in districts of Aleppo visited by Reuters journalists

in recent days seemed battered, overwhelmed and running low on

ammunition after days of intense shelling of their positions by

tanks and heavy machinegun fire from helicopter gunships.

Syrian army tanks shelled alleyways where rebels sought

cover as a helicopter gunship fired heavy machineguns. Snipers

ran on rooftops targeting rebels. Women and children fled the

city, some crammed in the back of pickup trucks, while others

trekked on foot, heading to relatively safer rural areas.

Emboldened by the audacious bomb attack in Damascus that

killed four of Assad's top security officials last month, the

rebels had tried to overrun Damascus and Aleppo, the country's

commercial hub, near the Turkish border.

But the lightly armed rebels have been outgunned by the

Syrian army's superior weaponry. They were largely driven out of

Damascus and are struggling to hold on to territorial gains made

in Aleppo, a city of 2.5 million.

Damascus has criticised Gulf Arab states and Turkey for

calling for the rebels to be armed, and state television has

described the rebels as a "Turkish-Gulf militia", saying dead

Turkish and Afghan fighters had been found in Aleppo.

Paralysis in the U.N. Security Council over how to stop the

bloodshed persuaded peace envoy Kofi Annan to resign last week,

his ceasefire plan a distant memory.

The main focus of fighting in Aleppo has been the

Salaheddine district. Once a busy shopping and restaurant

district, it is now white with dust, broken concrete and rubble.

Tank shell holes gape wide on the top of buildings near the

front line, and homes of families have been turned into

look-outs and sniper locations for rebel fighters. Large mounds

of concrete are used as barriers to close off streets.

Lamp-posts lie horizontally across the road after being downed

by shelling.

Civilians trickle back to collect their belongings and check

on their homes. "Just to hold power he is willing to destroy our

streets, our homes, kill our sons," wept Fawzia Um Ahmed,

referring to Assad's counter-offensive against the rebels.

"I can't recognise these streets any more."