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Peru's President Fernando Belaunde Terry said Sunday that Britain...

LIMA, Peru -- Peru's President Fernando Belaunde Terry said Sunday that Britain and Argentina are about to sign a seven-point cease-fire agreement to end the Falkland Islands dispute.

A spokesman at the presidential palace in Lima said U.S. Ambassador to Peru Frank Ortiz was meeting inside the building with the president and had brought him a message from President Reagan. The contents were not disclosed.

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'Negotiations are under way that shortly could re-establish peace in the South Atlantic,' Belaunde Terry said at a news conference Sunday. 'There is good will on both sides.'

Belaunde Terry did not reveal details of the plan, but he said it does not represent a capitulation for either side.

There was no immediate confirmation of the report from any other source.

Belaunde Terry said the agreement resulted from telephone conversations the Peru government had over the weekend with Secretary of State Alexander Haig, Argentine President Leopoldo Galtieri and Foreign Minister Nicanor Costa Mendez.

In Washington, a State Department spokesman said, 'The secretary of state has been in touch with President Belaunde and with Foreign Secretary Pym in recent hours and a number of ideas have been exchanged, but there is no agreement on anything.'

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Spokesman Joe Reap said he did not know whether a seven-point plan was one of the ideas exchanged. He declined further comment.

Eduardo Jantus, press spokesman for the Argentine Embassy in Washington, said he knew nothing of any cease-fire agreement. 'We have nothing to say,' he said. 'I haven't heard anything.'

In London, a Foreign Office spokesman said he knew nothing about such an agreement.

Beluande Terry said at the news conference the seven-point plan was suggested by Haig. The first point was the 'immediate cessation of hostilities,' he told reporters.

'Our purpose is that peace be achieved as soon as possible, that it even be possible this very night,' he said. 'It is a grand aspiration that might not be achieved, but it is our hope.'

Belaunde Terry said the document had been studied by Pym, and 'could be signed in the next few hours.

'The document is for neither side a capitulation, it has the merit of being a testimony of victory precisely for the two parties that have been wrapped up in this delicate conflict.'

Before the fighting broke out last week on the South Georgia Island, Peru had proposed a 72-hour truce between Argentina and Britain. That truce was accepted by Argentina but rejected by Britain.

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