Article: IRAQ ASKS FOR PEACE ON IRAN'S TERMS SADDAM HUSSEIN SEEKS TO NEUTRALIZE KEY FOE

AMMAN, Jordan - Iraq, facing old, new and potential enemies along four borders, sought yesterday to neutralize one of them by peaceful means, effectively conceding defeat in its costly eight-year war with Iran.

Seeking to end a two-year cease-fire with a formal peace treaty, President Saddam Hussein's overture to Tehran promised to withdraw all his forces from captured Iranian territory, return 30,000 Iranian prisoners of war and share with Iran the disputed strategic waterway he started the war over in 1980.

Saddam Hussein, evidently concerned about the prospects of waging a multifront war, minced few words in his capitulation.

"Dear Brother President Ali Akbar Hashemi ...

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