Iran links hostage solution to Algerian acceptance

Iran said Tuesday it would agree to any US proposal to end the hostage cirsis provided it guaranteed the return of Iranian assets and was judged acceptable by Algeria. But Behzad Nabavi, Iran's top hostage negotiator, warned that the 52 American captives would be tried as spies if no such solution was found to end the 424-day-old crisis.

Mr. Nabavi repeated Iran's demand that it receive "financial guarantees" from the United States before it releases the hostages. He reiterated that this meant cash-in-advance to be deposited with Algeria's Central Bank as a fund from which Iran could claim both its frozen government assets and the late Shah's wealth. But apparently responding to Washington's rejection of that as "unreasonable," he indicated there was still room for engotiation.