KEY CONDITIONS FOR CEASE-FIRE : <i> Key conditions Iraq was asked to accept under the Security Council resolution declaring a permanent cease-fire in the Gulf War:</i>

* WEAPONS. Iraq must destroy chemical and biological weapons and ballistic missile systems with a range of more than 95 miles under U.N. supervision and forswear future development or acquisition of such arms or of nuclear arms. Its nuclear materials that could be used for weapons are to be destroyed or removed by the International Atomic Energy Agency.

* ARMS. An arms embargo on Iraq remains in effect.

* EMBARGO. The Security Council’s previous decision to relax bans on sending food to Iraq is confirmed, but the wider trade ban remains in effect until Iraq has complied with the disarmament provisions.

* REPARATIONS. Iraq is held liable for damage, including environmental havoc, resulting from its invasion and occupation of Kuwait. A fund drawing from Iraq’s oil revenues will be created to pay claims by Kuwait, other nations and their citizens and corporations.

* OBSERVERS. The United Nations will provide military observers to monitor a demilitarized zone reaching six miles into Iraq and three miles into Kuwait. U.N. deployment would allow allied troops to withdraw.

* TERRORISM. Iraq must declare that it will not “commit or support” international terrorism or allow terrorist groups to operate from its territory.

* KUWAIT. Iraq and Kuwait are called on to “respect the inviolability of the international boundary” agreed upon in a 1963 treaty signed by both nations.

* RED CROSS. Iraq is called on to cooperate with the International Committee of the Red Cross in repatriating Kuwaitis and others detained during the war.