(Releads with Syrian agreement) By Ross Colvin BAGHDAD, Nov 21 (Reuters) - Iraq and Syria agreed to restore full diplomatic relations on Tuesday after a break of nearly a quarter of a century, a move Iraq hopes may help stem what it says is Syrian support for militants. Syrian Foreign Minister Walid al-Moualem, making the first visit by a Syrian minister to Iraq since the U.S.-led invasion in 2003, signed an accord with Iraqi counterpart Hoshiyar Zebari in which they agreed U.S. troops should stay in Iraq for now. Moualem had earlier called for the setting of a timetable for the withdrawal of 140,000 U.S. troops. The document contained wording used by the Iraqi and U.S. governments, saying troops should gradually withdraw once they were not needed. Amid calls for President George W. Bush to open talks with U.S. adversaries Syria and Iran to help stabilise Iraq, Iraqi President Jalal Talabani is also flying to Tehran on Saturday. Washington and Iraqi leaders accuse Iran of backing Shi'ite militia groups and Syria of helping Sunni insurgents. How far either foreign government can limit mounting sectarian violence in Iraq is unclear, as hundreds of deaths a week fuel fear and hatred at the heart of Iraqi society. A U.S. air strike on the Baghdad Shi'ite militia stronghold of Sadr City early on Tuesday killed three people, including a baby, police and health officials said, sparking public anger. The U.S. military said the strike came after U.S. and Iraqi troops were fired on with rockets and machineguns during a raid in which they captured seven people, including a man they said led a group linked to the kidnap of an Iraqi-born U.S. soldier. DIPLOMATIC TIES Syria and Iraq agreed to restore full diplomatic ties, reopening their embassies in Damascus and Baghdad. An agreement in principle was struck some months ago. Ambassadors with full rank would be named and flags raised over embassies shortly. Saddam Hussein and Syria's late President Hafez al-Assad, leaders of rival wings of the Arab nationalist Baath party, severed ties when Syria sided with Shi'ite, non-Arab Iran during the 1980-1988 Iran-Iraq war. U.S. and Iraqi officials have long accused Damascus of doing too little to stem the flow of foreign Islamist fighters and weapons across its long, porous border. Syria says sealing the border is impossible and Iraq must do more to patrol its side. The U.S. military said on Monday that between 70 and 100 foreign fighters were still crossing the border each month. After meeting officials, including Shi'ite Prime Minister Nuri al-Maliki, who has used harsh language about Syria's alleged role in the insurgency, Moualem pledged cooperation in tackling violence that has raised the spectre of civil war Syria was prepared to work "hand in hand to achieve the security of brother Iraq". After the strike in Sadr City, Iraqi Health Ministry official Qassem Abdul Hadi said the dead included a six-month- old boy and that up to 50 people had been wounded. Other officials put the number of wounded at 15. Iraqi police said U.S. and Iraqi forces raided the slum suburb of over 2 million at 5 a.m. (0200 GMT) and called in the air strike after clashing with militiamen loyal to Shi'ite cleric Moqtada al-Sadr. They said five people were killed. Recent raids by U.S. forces in the area have sparked tensions with Maliki's coalition government. The dead child, a baby boy, had a gaping skull wound. His uncle, Abu Ahmed, cradled him in his arms, the lifeless body was wrapped in white cloth: "Where is this loser government. What is the fault of this child? Is he also militia? Does God, Islam accept this?" Abu Ahmed asked angrily. A woman wailed "My father, my father", while other residents gathered round a burned-out house from which smoke poured.(Additional reporting by Aseel Kami)
