NICOSIA, CYPRUS, AUG. 12 -- Following is a partial text of proposals made by Iraqi President Saddam Hussein in a message broadcast on Baghdad radio and television today, translated by Reuter.

As a contribution on our part to create an atmosphere of real peace in the region and to facilitate . . . a state of stability, and to expose the falsity of America and its disfigured ally, Israel, as well as its small agents and their crimes against the nation, and affirming our right from a position of strength, we decided to present the following initiative:

The United States of America . . . lost its mind when Kuwaitis and Iraqis decided to restore what had been torn apart by the British colonialist . . . whereby Kuwait was part of Iraq until World War I. Iraq has never accepted the colonialist crime.

America started to mass military fleets and squadrons of aircraft and beat the drum of war against Iraq under the pretext of confronting the Iraqi threat to Saudi Arabia.

Because the spark of war, if started, will burn many and create great tragedies . . . and in order to put the facts to world public opinion and the Western one in particular, and to unveil the falsity of America's allegations that it is championing the causes and rights of peoples and seeking to safeguard peace . . . I propose that all issues of occupation, or those projected as occupation, in the whole area should be resolved on the same basis and principles as put forward by the {United Nations} Security Council.

1. Laying down arrangements for withdrawal in accordance with one principle -- for an immediate and unconditional Israeli pullout from the Arab-occupied territories in Palestine, Syria and Lebanon, the withdrawal of Syria from Lebanon and withdrawal between Iraq and Iran, in addition to laying down arrangements for the case of Kuwait.

The military withdrawal should take place on a schedule that should apply in all cases . . . taking into consideration Iraq's historical rights to its land and the choice of the Kuwaiti people.

An implementation of this withdrawal program should begin with the occupation that took place first . . . and subsequently a successive implementation of all resolutions issued by the Security Council and the United Nations related to all these cases, until we reach the last case {Iraqi occupation of Kuwait}.

The same measures adopted by the Security Council toward Iraq should also be applied to whoever does not abide by or respond positively to this arrangement.

2. To put matters . . . in front of the world public opinion to judge under objective conditions and away from American pressure, we call for the immediate withdrawal from Saudi Arabia of American and other forces that have responded to its conspiracy.

These should be replaced by Arab forces whose volume, nationality, duties and areas of presence between Iraq and Saudi Arabia should be defined by the Security Council. . . . These forces should not include any from Egypt, whose government was used by America as a crutch in its conspiracy against the Arab nation.

3. There should be an immediate freeze on all resolutions dealing with sanctions and blockade against Iraq, and economic, political and scientific dealings between Iraq and world countries should be restored to normal. . . .

In all cases, and if America, its allies and small agents do not respond to our initiative, we will strongly resist, with the support of the good sons of the Arab nation and the great Iraqi people, its evil intentions and aggressive plots.

Victory is ours with God's help.

The evil men will regret their act after they are driven out from the region with a curse trailing behind them.