DAMASCUS, April 3 (Reuters) - U.S. House Speaker Nancy Pelosi toured the old city of Damascus on Tuesday after arriving in Syria for a meeting with President Bashar al-Assad which the White House had described as a bad idea. Pelosi, on a Middle East tour, said on Monday she had "no illusions but great hope" for the talks which she said would focus on the fight against terrorism, Iraq and Lebanon. The White House has condemned Pelosi's plans to visit Syria and meet Assad, whom the United States has accused of helping destabilise the region, saying it sent the wrong message to the Syrian leader. Syrian officials said they hoped Pelosi's visit would "restore balance" to U.S. policy in the Middle East. Asked how she found the old city of Damascus, she told reporters: "Wonderful". Pelosi, a Democrat, and her high-level delegation, who were given a red carpet reception, were welcomed at Damascus airport by Syrian Foreign Minister Walid al-Moualem. The delegation holds talks with Assad on Wednesday. Pelosi has shrugged off the White House criticism of the trip, saying it was a good opportunity to gather facts and build some confidence. The United States withdrew its ambassador from Damascus shortly after the assassination of former Lebanese Prime Minister Rafik al-Hariri in February 2005. A handful of Republican and Democratic politicians visited Damascus and met Assad in December after the bipartisan Iraq Study Group recommended a greater diplomatic effort involving Syria and Iran to help calm the violence in Iraq. The Bush administration has resisted that recommendation.