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Iraqi Leader Offers Iran New Peace Plan

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<i> Reuters</i>

President Saddam Hussein on Friday proposed resuming peace talks with Iran, and he suggested that the long-hostile nations re-establish air links.

The Iraqi president suggested that direct meetings between representatives of Iran and Iraq be held alternately in Tehran and Baghdad under the auspices of the U.N. secretary-general. He also said Iran and Iraq should exchange prisoners of war and open their borders to allow resumption of visits to Islamic shrines in both countries.

Fighting in the eight-year Iran-Iraq war ended Aug. 20, 1988, when both sides accepted a cease-fire based on U.N. Security Council Resolution 598. Peace talks stalled immediately over interpretation of terms of the resolution.

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