Iraqi and U.N. officials signal some progress as they begin a second round of talks here over a U.N. deal that would allow Baghdad to sell limited amounts of oil.

Although neither the Iraqi nor the United Nations delegation is willing to discuss the specific progress of the “oil-for-food” deal that would let Baghdad sell one billion dollars of oil every 90 days, the mood for the talks has brightened.

The improved mood may mean that Iraq finally wins partial relief from the U.N. embargo imposed since its Aug. 1990 invasion of Kuwait.

Abdul-Amir al-Anbari, the Iraqi ambassador heading his side’s delegation, noted that the very existence of a second round of oil talks indicates the process to secure a deal has moved ahead. But he refused to say whether Iraqi President Saddam Hussein had finally accepted a U.N. deal which he had earlier rejected, saying that the tight monitoring and distribution of the oil sale and its proceeds violated Iraqi sovereignty.

“The political decision (to accept a deal) is a process,” al- Anbari said. “In a way, my being here is itself a sign that the process is moving.” He added he expected to discuss technical issues involving the logistics of the oil sale for the next seven to 10 days.

U.N. Under-Secretary-General Hans Corell, who heads the U.N. !V+VV,W¡KR