Russian govt and Communists discuss crucial land reform

President Yeltsin has indicated he's ready to compromise over the Russian government's plans to legislate over one of the country's most sensitive political issues -- land reform.

He was speaking at a special conference involving the government and opposition.

Mr Yeltsin, who wants a free market in the sale of land, said he would agree to tough state controls over land dealings in any future law, including a ban on the sale of plots to foreigners.

The meeting agreed to set up an all-party commission to work out a new land code for Russia within the next three months.

Correspondents say conccessions to the Communist opposition were needed -- their co-operation will be required to get the government's austerity budget through parliament next month.

And in what correspondents see as another gesture towards the opposition, the president, in his Friday radio address, appealed to Russians to return to ethical values in a world which had become too materialistic.

From the newsroom of the BBC World Service