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<E30> Warm idle problem

When starting the engine while it is still warm, it sometimes fails to
idle. The revs initially swing up past 1000 rpm and then drop and the
engine stalls. If I apply some throttle, it can be kept idling. After 2-3
seconds, it will idle normally. During this 2-3 seconds, the idle seems to
be swinging between 100 - 1000 rpm. With each cycle of the oscillation, the
range reduces until it settles down to a stable idle. It is like an
underdamped system. This happens about every other time I start the car
with the engine warm. The car is an 85 model 323i euro spec, no O2 sensor,
no cat con. Any suggestions as to the cause of this problem will be
appreciated.

Regards,
Graham Rhall 85 323i (138,000Km)