IRANIAN CRISIS: PLO Mediation _Rejected A blindfolded American hostage In the embassy = grounds. Tehran (Agencies) --A Palestinian effort to mediete the release of the 60 Americans held hostage here was re- jected last night by the iranian .studenis occu- pying the U.S. Embas- ay. Tehran radio sald — the students told two - high-ranking PLO offi- Clals they were not pre- pared to accept mediation from any side. The students dec- jared - the hostages would only be released after the American gov- emment hands over the ailing deposed Shah to | the iranian government hande over the alling deposed Shah to the franian government “to stand trial for his crimes against the people.” They added their stand was in line with the decision of Ayatol- ‘lah Khomeini.