International powers agreed last night that a transitional government should be set up in Syria to end the bloodshed there but left open the question of what part President Bashar al-Assad might play in the process.

Peace envoy Kofi Annan said after talks in Geneva that the government should include members of Assad's administration and the Syrian opposition to pave the way for free elections.

"It is for the people to come to a political agreement but time is running out," Annan said in concluding remarks.

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