Progress hinted as envoy renews Gulf peace quest

UN special envoy Olof Palme, starting his third trip to Baghdad and Tehran since the outbreak of the Gulf war, held talks Wednesday with senior Iraqi ministers.

Mr. Palme's latest visit to the capitals of the two countries followed new calls for a cease-fire from Islamic and nonaligned nations and a warning from Iraqi President Saddam Hussein that his country will seize more Iranian land if Tehran does not open talks.

Western diplomatic sources said the fact that the UN envoy, who is acting as the personal representative of Secretary-General Kurt Waldheim, returned just a month after his last visit was an indication that some progress was being m ade in mediation.