DAMASCUS - Syria's liberal opposition has said it will not accept money from a U.S. offer to fund democratic groups in the country, saying that its credibility would be damaged if it took the cash.

A group of a dozen parties, known as the Damascus Declaration, said on Monday they had enough resources on their own to press ahead with a campaign for peaceful change to end a 40-year monopoly by the Baath Party on power.

"The Damascus Declaration refuses foreign funding, including the $5 million from the U.S. State Department for the Syrian opposition," a statement by the group said.

The United Sates imposed several sanctions on Syria in 2004, accusing Damascus of supporting "terrorism." Two weeks ago it announced a $5 million grant to fund what it called "democratic reformers" in Syria.

A U.S. State Department official said the money was not aimed at opposition or political groups in Syria.

"The funds are there to help civil society groups interested in promoting democracy at large. It is not a promotion of direct political parties or views," he said in response to whether Washington was disappointed with the Syrian opposition response.

Damascus Declaration founding member Hassan Abdel Atheem told Reuters the United States cannot expect popular support for its policy toward Syria while it maintained sanctions against the country.

"Support by international powers for democratic change in Syria is welcome. This does not include financing because it means subordination to the funding country," he said.

"Our project is nationalist, independent democratic change in Syria, not through occupation or economic pressure as we see the United states doing," he said.

PROMOTING DEMOCRACY

The Damascus Declaration, which does not include the banned Muslim Brotherhood, seeks to promote greater freedoms and usher pluralism in Syria.

Syria has been ruled by the Baath party since 1963. In 1970, Hafez al-Assad, the father of Syria's current president took power in a coup d'etat and ruled until his death in 2000 when his son Bashar succeeded him. Bashar is credited with bringing some liberal reforms to Syrian politics and the economy.

The opposition says opening up the political system is the best way to counter the United States, which is leading international efforts to isolate Syria for its alleged role in the killing of former Lebanese Prime Minister Rafik al-Hariri a year ago.

Atheem said he does not know of any Syrian who applied for the funding, although the government has been harassing and threatening opposition figures, such as Riad Seif, who was only freed from jail a month ago.

Ayman Abdel an-Nour, a Baathist political consultant who is pushing for reform within the party, said the powerful security apparatus dismisses domestic and international pressure to loosen its grip on power and deal less harshly with dissidents.

"They feel that the regime is about to escape the aftermath of the Hariri assassination intact," Abdel Nour said.

"They don't realize that by opting for change, they could contain the rise of Islamist forces and emerge victors in a multi-party system, similar to some communists in the former Eastern bloc," he added.

A U.N. investigation has implicated senior Syrian officials in the Hariri assassination. Damascus denies involvement in the killing and pledged to cooperate with the investigation.

Copyright 2006 Reuters News Service.