The following excerpts are from the official proposal for dialogue presented today by Salvadoran President Jose Napoleon Duarte.

The seven-page proposal was released to coincide with its presentation to the Salvadoran rebels' representatives in the town of La Palma. To a large degree it restates Duarte's previous proposals, including excerpts from his speech Monday a week ago to the United Nations, where he first proposed today's meeting:

"Unfortunately, the FDR hasn't understood that we are living a new reality. That is why they continue to try to change something that no longer exists: a medieval agrarian structure, a financial structure at the service of minority interests, an army at the service of a political system dominated by an economic elite. . . .

"Today in our country one breathes an air of freedom. Political parties are respected and encouraged and the people choose their leaders in freedom. Human rights violations have decreased to a minimum, and the guilty are prosecuted.

"Without a doubt the acceptance of this proposal . . . requires a change in attitude to transform hate into understanding and tolerance . . . peace is the result of a state of individual and social consciousness that rejects aggression. PROPOSAL

"Within the framework of the constitution . . . I propose the pacification of the country, and I guarantee the necessary political space so that those who are currently up in arms can incorporate themselves into society . . . and the democratic political process.

"[I propose] the creation of a commission made up of six delegates appointed by the president [and] six representatives of [the guerrillas] [and] a moderator designated by the Salvadoran Bishops Conference.

"The commission will . . . a) Hold periodic meetings. b) Study the mechanisms for the proper . . . execution of this 'peace offer.' h) Present its recommendations and proposals to the president . . . .

"The democratic political process . . . is based on the following points: a) a [pluralistic] political system. Political parties constitute the only instrument for [popular representation.]

"Respect for the different ideological conceptions of social organization . . . is expressed . . . [by] freely elected governments.

"Effective freedom of travel, expression, political participation, work, association, spiritual and material development [are guaranteed]. POLITICAL INCORPORATION

"Following the incorporation of [the guerrillas] into the democratic process, and their participation in the country's social and economic activity, I offer:

"To propose to the Legislative Assembly a general, immediate and unconditional amnesty for anyone who might have indirectly or directly participated in crimes related to political violence.

"To [ensure] that the officers and Army rank and file, members of the security forces and of the civil and territorial defense will guarantee the free transit of the guerrillas and their reincorporation into society . . .

"For those who decide to leave the country [I offer] complete facilities for their documentation . . .

"To those displaced by violence [I offer] full guarantees so that they may return to their homes.

"Free participation in political activities and organizations. In order to do this they [the guerrillas] will be granted full freedom of association, participation and expression."