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(Refiles, no change to text)By Steve HollandWASHINGTON, May 5 (Reuters) - President Donald Trump on Tuesday dismissed Iran's military capability and said Tehran "should wave the white flag of surrender" but is too proud to do so.Trump told reporters in the Oval Office that Iran's military has been reduced to firing "peashooters" and that Tehran privately wants to make a deal despite its public sabre-rattling."They play games, but let me just tell you, they want to make a deal. And who wouldn't,

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