PARIS - The United Nations' envoy charged with resolving conflict between Syria and Lebanon said on Monday he was optimistic that a border dispute could be settled and normal diplomatic relations resumed.

"I do now have very good hopes that it should be possible to resolve these two essential issues related to Lebanon's sovereignty," Terje Roed-Larsen said after meeting French Foreign Minister Philippe Doust-Blazy.

Roed-Larsen said he was pleased to see total agreement among the key regional players on issues arising from the Syrian withdrawal from Lebanon in 2005, in line with UN Security Council Resolution 1559.

But primary responsibilty lay with Damascus and Beirut, he said.

"It takes two to tango. Now the two parties, Syria and Lebanon, should sit at the table, start the work on establishing diplomatic ties and start the necessary work on demarcating their border, because not doing that would leave a huge potential for conflict between the two countries."

The frontier issue concerns in particular the farms at Shebaa, occupied by Israel, at the point where the Israeli, Syrian and Lebanese borders meet. The area has been the scene of clashes between Lebanon's Hezbollah and Israeli forces.

Hezbollah has used the Israeli occupation of the farms as a reason for continuing its military operations.

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