The World - News from July 16, 1985
Communist Khmer Rouge rebels, in a major policy shift, said they would accept the creation of a “capitalist regime” in Cambodia and expressed a willingness to sign a peace treaty with Vietnam. The former rulers of Cambodia proposed a coalition government led by Prince Norodom Sihanouk that could include the pro-Hanoi Heng Samrin government in Phnom Penh. There was no immediate response from Vietnam.
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