KENNEBUNKPORT — President Bush said Monday he sees little hope for “fruitful negotiations” in the United Nations-sponsored search for a peaceful solution to the Persian Gulf crisis.

He also said it was inconceivable that U.N. Secretary General Javier Perez de Cuellar will make concessions to Iraq.

Asked if he was more optimistic than he had been about a diplomatic settlement, Bush said:

“I don’t particularly see more hope now because it’s so clear that what the world is demanding of Saddam Hussein. Clearly, the objective remains the same — get (Saddam) out of Kuwait and restore the rightful leaders to their place.”

Bush ruled out any settlement that did not fulfill those goals.

The president also said he didn’t believe his sanctions against Iraq’s embassy in Washington would worsen the situation because “nobody will be held against their will.”

“They’re free to go,” unlike U.S. diplomats being detained in Baghdad and Kuwait, Bush said.

The Iraqi diplomats allowed to stay in the United States will be restricted in their travel to a 25-mile radius of Washington.

As to what kind of latitude Perez de Cuellar might exercise in his talks with the Iraqis, which begin Thursday, Bush said: “There is no flexibility on Iraq getting out of Kuwait and the rulers (of Kuwait) being permitted to come back.

“Saddam Hussein has been so resistant to complying with international law that I don’t yet see fruitful negotiations,” Bush told reporters at a joint news conference with Canadian Prime Minister Brian Mulroney.