WORLD

MOSCOW--Secretary of State James A. Baker III failed yesterday to break a stalemate on arms control treaties with the Soviet Union, but he offered praise for Soviet President Mikhail S. Gorbachev's efforts to defuse tensions in he Baltic republics and to energize his stagnant economy.

The deadlock in implementing one treaty and finishing another means further delay in rescheduling a visit here by President Bush for summit talks with Gorbachev.

"The relationship has gone through a test recently and it has survived," Baker said. "That is good for the Soviet Union and good for the United States and good for the world."

Baker's statement concluded a joint news conference with Soviet Foreign Minister Alexander A. Bessmertnykh.

Bessmertnykh said quietly to Baker. "Excellent final words."

Baker warned Iraqi President Saddam Hussein that the cease-fire agreement in the Persian Gulf War imposed strict limits on his military operations. The implication was that the United States might resort to force to restrict his tactics in conflicts with rebels.