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By CHARLES MITCHELL

MOSCOW, June 28, 1988 (UPI) -- Soviet leader Mikhail Gorbachev made it clear in his speech Tuesday to the opening session of the 19th Communist Party conference that there are limits to his policies of political and economic reform and the Soviet Union's Facing criticism from conservatives, he said the limit had been reached in two areas: nationalist unrest in the three Baltic states plus the Asian republics and street protests from dissident groups in Moscow.

While it was acceptable to voice differing opinions on some issues, the Soviet leader said certain groups had abused his liberalization policies, known as glasnost, to demand changes that ''contradict the people's interests.''

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In other words there are still ''sacred cows'' or topics too sensitive or too threatening to the Communist Party's power to become subjects of public protest or debate.

Gorbachev made clear references to two causes that have grabbed headlines and created cause for concern among conservatives -- Armenian nationalist demands for a return of the Nagorno Karabakh region from Azerbaijan and the creation of the Democratic Union, which calls itself an opposition political party.

''As you know, we have lately more than once encountered attempts to use democratic rights for undemocratic purposes,'' Gorbachev said. ''Some think that any questions -- from the recarving of borders to the establishment of opposition parties -- can be resolved in this way.

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''The Central Committee of the Communist Party of the Soviet Union believes that such abuses of democratization ... contradict the people's interests.''

''Society must have at its disposal effective means of influencing anti-social elements, re-educating and returning them to a normal working life,'' he said.

Even Gorbachev himself frequently has acknowledged that his reform policies have created ''confusion'' within party ranks and the general population.

The informal guidelines to the limits of glasnost he mentioned in his speech should help relieve some of the confusion concerning the issues of the Democratic Union and the Armenian-Azerbaijan conflict.

Gorbachev's statement should help to placate the conservative forces, which fear that civil disobedience and public protest has grown out of hand since last July's Red Square sit-in by Crimean Tartars.

To save Gorbachev potential embarrassment before his conservative colleagues, police are under orders to halt demonstrations in Moscow during the conference week. The move, coupled with the declaration of some limits to glasnost, hardens up Gorbachev's image in the face of the conservative opposition to his reforms.

But he also promised in his speech greater religious tolerance and demanded an end to the blatant harassment and discrimination in the workplace suffered by churchgoers.

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His call for an end to religious discrimination is sure to win him points in the West and reinforce his international image as a new breed of more tolerant and reasonable Soviet leader.

Breaking a 70-year tradition of non-tolerance of religion will not come overnight and may not come at all, but Gorbachev has managed to take the wind out of the sails of some Western human rights groups that have been clamoring for just such a move.

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