The MSR instruction writes to the PSRs. Note that on an ARM7 it's only available in a privileged mode (the notion of APSR for nonprivileged access to certain CPSR fields came in later architectures).
The ARMv4t reference manual includes this specific example of clearing the flags:
MRS R0, CPSR ; Read the CPSR
BIC R0, R0, #0xf0000000 ; Clear the N, Z, C and V bits
MSR CPSR_f, R0 ; update the flag bits in the CPSR
Note the read-modify-write operation to preserve reserved bits for the register form. For the specific case of setting flags, writing an immediate value directly to CPSR_f is permitted provided you write zeros to the reserved bits.