A Secret Peace Offer From Iraq -- Proposal Reportedly Calls For Concessions

WASHINGTON - Iraq has told the White House that it will withdraw from Kuwait and allow foreigners to leave, but in return it wants U.N. sanctions lifted, guaranteed access to the Persian Gulf and sole control of an oil field that dips into Kuwait, sources involved in the secret offer and memoranda detailing its contents say.

Iraq's message was delivered to National Security Adviser Brent Scowcroft last Thursday by a former high-ranking U.S. official. Contacted by Newsday yesterday, the former official confirmed that he had relayed Iraq's proposal to the White House.

The former official spoke on the condition that he not be further identified.

Today, the White House declined to confirm or deny the report, but a spokesman, Roman Papadiuk, said there was an active diplomacy going on.

At a luncheon with Scowcroft several days earlier, the national-security adviser had told the former official that the United States was ``not blind'' to negotiations and was ``trying to do everything without taking the military option,'' according to a private summary of that meeting. At the same time, the United States was ``waiting to see the result of the (U.N.-imposed) economic sanctions'' to prod Iraq from Kuwait.

A White House spokesman said he was aware that Iraq has been floating some ``trial balloons'' but reaffirmed President Bush's stated condition that Iraq pull out of Kuwait, allow the restoration of its government and release all hostages before any negotiations begin.

Nevertheless, one administration official who specializes in Middle East affairs said, ``The terms of the proposal are serious,'' and he described the package as ``negotiable.'' Of significance, he said, was the fact that Iraq made no mention in its proposal that the United States pull out of Saudi Arabia. The official also noted that the proposal follows earlier ones that contained what he described as ``impossible demands,'' such as linking a pullout from Kuwait with an Israeli withdrawal from the occupied West Bank and Gaza.

The message was delivered as Iraq threatened to evict diplomats from the embassies in Kuwait and sources said the U.S. was contemplating military retaliation.

A document outlining the proposal said that Iraq would agree to withdraw from Kuwait and allow foreigners to leave the country. In return, U.N. economic sanctions would be lifted. Iraq would gain ``guaranteed access'' to the Persian Gulf through the Kuwaiti islands of Bubiyan and Warbah and gain full control of the Rumailah oil field that extends slightly into Kuwaiti territory from Iraq.

In addition, Iraq's proposal includes offers to negotiate an oil agreement with the United States ``satisfactory to both nations' national-security interests,'' develop a joint plan ``to alleviate Iraq's economical and financial problems'' and ``jointly work on the stability of the gulf.''

Iraq's proposal to the White House originated from the foreign ministry in Baghdad ``and higher-ups'' - by inference Iraqi President Saddam Hussein. Last week's message was delivered to the former administration official by an Iraqi-born American friend of his with extensive business ties in Iraq, according to memoranda obtained by Newsday.

The documents were provided on condition that those involved in the secret proposal not be identified.