Tehran, Iran — Ayatollah Ruhollah Khomeini told the Iranian government to accept undertakings by Algeria aimed at solving the hostage dispute, Prime Minister Muhammad Ali Rajai said. Mr. Rajai did not clarify whether he was referring to new initiatives by the Algerians or whether the ayatollah was simply giving his blessing to the Algerians as mediators. Questioned about the hostage issue Mr. Rajai said:
"We explained . . . the latest US view and also Algeria's suggestion that it undertakes to solve the problems between us and America. The imam told us to accept this [Algerian] undertaking. I hope we will announce the remaining issues soon."