British Prime Minister Tony Blair made clear yesterday that differences between his country and Syria still remained even after his talks with Syrian President Assad. Blair emphasized that "action should follow" if Baghdad were shown to be in breach of U.N. demands. However, Blair did tell reporters yesterday that he believes Syria could be a "central pillar in building peace in the Middle East." Assad, for his part, smiled as he said, "We have no terrorist organizations, only press offices of PA bodies." Israel and Jewish groups remain greatly concerned that Britain's relations with one of the world's leading terrorist-sponsoring countries weakens the international struggle against terrorism.