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Editor, owner of Britain's Observer patch up dispute

The editor and the owner of the Observer newspaper patched up a public quarrel Saturday over coverage of Zimbabwe, removing a threat that the British weekly would be sold or even closed.

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An exchange of letters made public Saturday showed that editor Donald Trelford offered to resign but proprietor Roland ''Tiny'' Rowland, head of the Lonrho trading empire, rejected the offer and pledged increased support for the paper.

The row erupted two weeks ago when Mr. Rowland publicly apologized to Zimbabwe Prime Minister Robert Mugabe for a report written by Mr. Trelford alleging Army atrocities in Matabeleland in the west of Zimbabwe.

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