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By Arshad Mohammed MONTREUX, Switzerland (Reuters) - Simply demanding Iran's capitulation is no way to get a nuclear deal with the Islamic Republic, U.S. Secretary of State John Kerry said on Wednesday as he wrapped up three days of talks with a veiled dig at Israeli Prime Minister Benjamin Netanyahu. Kerry said he and Iranian counterpart Mohammad Jawad Zarif made some progress in their negotiations in the Swiss lakeside town of Montreux and would resume them on March 15. Kerry aides said many obstacles remained before a late March deadline for an outline accord between Iran and six world powers. On Tuesday, Netanyahu said in a speech in the U.S. Congress that Washington was negotiating a bad deal with Iran that could spark a "nuclear nightmare," drawing a rebuke from President Barack Obama and exposing a deepening U.S.-Israeli rift.