THATCHER AGREES TO TALKS WITH ARGENTINA

Prime Minister Margaret Thatcher has approved direct talks with Argentina, signalling a possible restoration of diplomatic relations broken during the 1982 Falklands war, The Times of London said Monday. Mrs. Thatcher gave the go-ahead after Argentina's new President, Carlos Sa'ul Menem, made it clear last month that talks could take place without the issue of sovereignty over the Falklands being raised, the paper said.

Britain refuses to discuss sovereignty, and the issue scuttled the last attempt at talks in 1984.

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