A special envoy of Turkmenistan's President Saparmurad Niyazov meets with Massoud in Tajikistan and with Taliban Supreme Leader (Amir-ul-Momenin) Mullah Mohammad Omar in the southern city of Qandahar.
The Taliban remain uncompromising on basic issues, however.
Representatives say they are prepared to discuss a broad-based government but insist that the role of Mullah Omar is not negotiable.
Taliban officials repeatedly demand that they be given Afghanistan's UN seat, but give no indication that they are willing to surrender suspected international terrorist Osama bin Laden to international justice.
In July, the Taliban forbids foreign aid agencies to employ women.
The UN sanctions, invoked in November 1999 in an effort to have bin Laden turned over to the US or a third country, also hinder the economy.
The United States and other countries freeze Afghanistan's foreign assets and ban international air traffic to and from the country.
One result is the loss of income from fruit production, traditionally one of the country's important legal exports.
Afghanistan's economy, overwhelmingly dependent on agriculture, faces disaster when the worst drought since 1971-72 continues into a second year.
By midsummer, the entire arid wheat crop, well over half the irrigated crops, and 60-80% of livestock, have been lost in the southern provinces.
In early November, heavy rains fall over large parts of the country, bringing some relief.
