By Francois Murphy

LA CELLE SAINT-CLOUD, France, July 15 (Reuters) - Talks near Paris have relaunched dialogue between Lebanon's rival political factions, improving chances of ending a crisis that threatens to plunge the country into chaos, France said on Sunday.

Officials have been at pains to dampen expectations for the two-day meeting chaired by French Foreign Minister Bernard Kouchner, between politicians' envoys from across Lebanon's broad political spectrum and a handful of civic society leaders.

Kouchner, however, said he believed the various factions would speak again soon after they pledged at the meeting not to resort to political violence and to show restraint in their use of the media, laying the groundwork for future talks.

"The Lebanese came, the sun showed up and it broke the ice," Kouchner told a news conference after the meeting held in a chateau in the wealthy Paris suburb of La Celle Saint-Cloud.

"What is important is that this dialogue between Lebanese parties will continue. It is continuing as of now," he said.

Lebanon has been paralysed by the crisis that erupted in November when six opposition ministers quit the government over Prime Minister Fouad Siniora's refusal to give the Hezbollah-led opposition veto power in his Western-backed cabinet.

The deadlock has spilled over into street demonstrations, an open-ended sit-in in central Beirut and occasional sectarian violence that has killed 10 people and wounded 400.

All efforts, notably those of Arab League chief Amr Moussa, to break the impasse have failed and with time running out before a divided parliament is set to elect a new president from Sept. 24, former colonial power France intervened.

ISRAELI SOLDIERS ALIVE

"The dialogue focused on the presidential election and on the formation of a national salvation government representative of Lebanon's main political components," Kouchner said.

The participation of Hezbollah was thrown into doubt last week after comments attributed to French President Nicolas Sarkozy linked the group to terrorism.

But the Shi'ite group, which fought a 34-day war against Israel last year and still holds two Israeli soldiers, went ahead after an official clarification.

Kouchner said he had discussed the soldiers with Hezbollah's envoys, and he believed they were alive.

"I understood yes. As I really understood, yes," he said in English when asked by an Israeli reporter if they were alive.

"I received the assurance that the negotiations were continuing, that they were, give or take a few details, on the right track, in particular with the United Nations," he said in French when asked about the soldiers' possible release.

Kouchner said despite the fact political leaders had sent their subordinates to the meeting instead of attending themselves, he believed talks would continue soon.

"Started, or restarted, renewed, relaunched at La Celle Saint-Cloud, this dialogue will continue among the Lebanese on Lebanese territory," he said, adding that he would visit Beirut on July 28 to see what progress had been made.

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