NICOSIA Ñ Several Arab regimes have been encouraged by the rapidly-developing strategic relations between Iraq and Syria.

Arab diplomatic sources said the reconciliation between Baghdad and Damascus have been hailed by those who want to form a military front against Israel. They include such states as Iran, Lebanon and Libya.

Other states appear concerned over the Iraqi-Syrian reconciliation. They are Jordan, Kuwait and Saudi Arabia -- all of whom fear an emboldened Iraq. Earlier this month, Iraq and Syria signed a mutual defense pact. The two countries have also linked their air defense systems.

Reconciliation efforts could be completed when Syrian President Bashar Assad arrives in Baghdad in September. Arab diplomats said Assad has obtained an invitation from Iraqi President Saddam Hussein.

Last week, Iraqi Vice President Mohammed Maarouf visited Damascus and met Assad. The diplomatic sources said Syria stands to gain as a major beneficiary of Iraqi trade.

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