Damascus: Syria's ambassador to Washington said on Sunday that the US Treasury Department has authorised the transfer of $500,000 (Dh1.8 million) to a Syrian charity in a sign that it is easing its economic embargo on the country.

Imad Mustafa told reporters in Syria's capital that the money to the Children with Cancer Support Association was raised by Syrians living in the US. There was no immediate comment from the Treasury Department.

The US, under former President George W Bush, imposed a variety of sanctions on Syria accusing it of allowing foreign fighters to cross into Iraq as well as supporting activist groups in Lebanon and the Palestinian territories.

In one of those measures, signed in 2004, Bush banned US exports to Syria except for food and medicine.

If the money transfer is confirmed, it would be another sign that the US is easing some sanctions. A Syrian newspaper reported last week that the US Trade Department has agreed to provide spare parts for two Syrian-owned Boeing 747 aircraft.

President Barack Obama has been looking for ways to repair the US image abroad and engage governments that have opposed US policies.

US Senator John Kerry, chairman of the Senate Foreign Relations Committee, will meet with Syria's president this week as part of a regional tour that began in Egypt yesterday.

Kerry on Monday challenged Syria to demonstrate its seriousness about encouraging peace and stability in the Middle East. During a 2006 visit to Syria, Kerry spoke of his concern about what he said was the flow of "money, weapons and terrorists" through Syria into Iraq and Lebanon. Syria has denied allowing militant fighters to cross into Iraq.

Kerry told reporters after meeting with President Hosni Mubarak in Egypt that the US is eager to talk to Syria.

Syrian President Bashar Al Assad said last month he also wants a dialogue with Washington but without preconditions.