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WAR IN THE GULF Iraqi commanders agreed on all matters raised at cease-fire talks with allied military chiefs, Gen. R. Norman Schwarzkopf announced Sunday. The agreement included the immediate release of all prisoners of war and provisions for an allied withdrawal from occupied Iraqi territory once the cease-fire arrangements are completed and the document is signed. Iraqi and allied generals met at Safwan air base inside Iraq. Two unidentified Iraqi generals had sat grim-faced across a wooden table in a military tent opposite General Schwarzkopf and Saudi Lt. Gen. Prince Khalid bin Sultan. The two sides focused on UN Security Council Resolution 686, adopted late on Saturday, which dictates a number of terms to Iraq for a permanent cease-fire, including the following: that Iraq rescind its order annexing Kuwait, accept in principle liability for loss, damage, or injury arising out of its invasion and occupation of Kuwait, arrange for immediate release of all prisoners of war and of all Kuwaiti and third-country nat ionals, immediately begin to return all Kuwaiti property. The coalition has warned repeatedly that hostilities could quickly resume if Iraq does not comply. Meanwhile, Saddam Hussein on Sunday pulled back two mechanized brigades from the Turkish border, possibly to protect Baghdad from allied attack. US military sources also speculated Saddam might use the forces to protect his regime from a coup.