World Notes IRAQ

All leaders know it is lonely at the top, but Iraqi President Saddam Hussein has been feeling more isolated than most lately. His moves to block an Arab League plan to halt the carnage in Lebanon and his decision to test two long- range missiles have angered neighbors. Moreover, his efforts to rebuild Iraq's economy are foundering.

Last week, following Iran's release of 50 ailing Iraqi prisoners of war, Saddam unveiled a three-point plan to revive peace negotiations with Iran, which have been stalled since 1988. In addition to the release of ill POWs, Saddam proposed direct Iran-Iraq talks and the resumption of airline flights between Baghdad and Tehran. Iran dismissed the proposals as "a new campaign of public deception."