SADDAM'S REVENGE BEGINS?


Global War Articles
The Truth

J. Adams
October 7th, 1997

Mind-boggling. The Dow closed up nearly 80 points today to about 200 points above the 8000 mark. The S&P 500 climbed to 980, near the 1000 mark for the first time in history. Collective beliefs and expectations are completely irrational, utterly insane- but such is the consequence of people's greed and arrogance.

Notably the S&P500 has charted out an Elliott Wave "diagonal triangle" since September.

This is a pattern that is usually observed into a culmination point, i.e., an Elliott Wave "fifth of a fifth".


See http://www.elliottwave.com/basics2.htm

In this case, a potential fifth of a fifth of a fifth....so on and so forth....into a Grand Supercycle top has formed. Another important characteristic of the diagonal triangle is that such a pattern is usually followed by a sharp reversal- something that implies a possible October crash (an example of such a reversal is the recent peak and plunge in the Malaysian stock market- see http://www.elliottwave.com/gmp-ewiww2.htm ).

As U.S. stock prices climb to unprecedented heights, events in the Middle East are moving rapidly toward what I have been warning the world about for the past six-and-a-half years:

Saddam's Revenge...

Remarkably, my Kremlin Astrology Update appears to be on the mark for once.

Mars, the planet of violence and war, and Pluto, the planet of death and nuclear energy ("pluto"nium), moved into exact conjunction last Friday (10/3) and yesterday the Moon passed by the conjunct planets. As I have been pointing out for years, a pretty strong case can be made that Saddam Hussein, acting in cahoots with Moscow, is taking action and shaping history according to astrology. When Iraq invaded Kuwait on August 2nd, 1990, a lunar eclipse was squared by Mars and Pluto (which were aligned via an opposition of the planets). Now, as Mars and Pluto are again aligned, Saddam is back in action.

Since last Friday, when the U.S. ordered an aircraft carrier to hurry to the Persian Gulf in response to recent Iraqi and Iranian violations of a "No-Fly Zone" in southern Iraq, there has been new Iraqi No-Fly Zone violations- violations that must have come very close to eliciting a U.S. military response since warnings have already been issued. Also, a U.N. facility in Baghdad was bombed on Sunday and today a U.N. convoy came under fire in northern Iraq (Baghdad is held responsible for the protection of U.N. personnel and facilities). All in all, since the conjunction of Mars and Pluto, Saddam has been busy picking a new fight with the West. Once the U.S. is foolish enough to take military action against Iraq, you can bet Saddam's Revenge will follow. (Yet, no one seems to be the least bit concerned as reflected by the record height of U.S. stock prices.)

In anticipation of what may be Saddam's imminent revenge and the destruction of Israel and the West, please read the Persian Gulf Deception and its Epilogue at this time.



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         "Iraq still violating 'no fly' zone, U.S. says"
              By ROBERT BURNS, The Associated Press

WASHINGTON (October 7, 1997 8:40 p.m.  EDT) -- Iraqi aircraft are 
continuing to violate the U.S.-enforced "no-fly" zone in southern 
and northern Iraq,  but American warplanes patrolling those areas 
have not responded, Pentagon officials said Tuesday.  

Navy Capt.  Michael Doubleday,  a Pentagon spokesman,  said there 
had been "several" Iraqi violations in recent days,  but he would 
not  be  more specific,  except to say the Iraqis were "skirting" 
the zone, mostly during daylight.  

Other defense officials, speaking on condition of anonymity, said 
two Iraqi fighters  had  entered  the  southern  no-fly  zone  on 
Tuesday without drawing fire from U.S. planes.  

The  United  States  "continues  to  enforce  the  no-fly  zone," 
Doubleday said,  "and we will do so in the future." He said  U.S.  
Air  Force  planes  flying  from  Saudi  Arabia  and Bahrain have 
stepped up the number of patrol flights in recent days.  

He declined to explain why  U.S.  enforcement  of  the  zone  had 
failed  to  stop the violations.  He would not say,  for example, 
whether the U.S.  planes had not been in position to fire on  the 
Iraqis or whether they had deliberately refrained from firing.  

British  and  French  fighters  also  are patrolling the southern 
zone.  

Doubleday said the Clinton administration had  signaled  to  Iraq 
its  seriousness  about  enforcing  the  no-fly zone when Defense 
Secretary William Cohen last  week  ordered  the  Nimitz  carrier 
battle  group to skip a port call in Singapore in order to arrive 
on station in the Persian Gulf ahead of schedule.  

"If they do carry out flight operations,  they risk getting  shot 
down,"  Doubleday  said.  "We've done that in the past.  We stand 
ready to do it in the future.  But  I'm  not  in  a  position  to 
predict if and when that will occur." 

U.S.  Navy  5th  Fleet  ships  already  in  the Gulf include five 
destroyers,   three  guided-missile   frigates   and   two   mine 
countermeasure ships. No aircraft carrier is in the Gulf now.  

The  no-fly  zone  over  southern Iraq was created after the 1991 
Gulf War to stop Iraqi  government  forces  from  crushing  rebel 
groups.  Iraqi President Saddam Hussein considers the restriction 
an unwarranted violation of Iraqi sovereignty.  

On Sept. 29, Iranian planes bombed bases in southern Iraq held by 
Iranian  rebel  groups.  The  next day the Clinton administration 
said it had put Iran on notice that,  if its pilots again intrude 
into that air space, they risk getting shot down.  

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          "Shots fired at U.N. convoy in northern Iraq"

BAGHDAD (October 7,  1997 09:28 a.m.  EDT) - A U.N.  convoy  came 
under  fire near the Turkish border in Kurdish-held northern Iraq 
but  there  were  no  casualties,  a  U.N.   spokesman  announced 
Tuesday.  It was the third attack on U.N. humanitarian operations 
in Iraq in a week.  

Eric Falt,  spokesman for the coordinator  of  U.N.  humanitarian 
operations in Iraq, said around 50 shots were fired at the convoy 
of  five  vehicles  in Monday's attack.  One of the bullets hit a 
car.  

"According to preliminary information,  the  shots  came  from  a 
mountainous region held by the PKK," the Kurdistan Workers' Party 
fighting the Turkish army, Falt told AFP.  

The  attack  on the convoy of vehicles belonging to UN guards and 
the World Food Program took place near Chiladiza,  some 20  miles 
from the Turkish border in the Dahuk region, Falt said.  

Turkish  troops  have  been deployed in northern Iraq,  including 
Dahuk, to hunt down Turkish Kurd separatists of the PKK.  

The latest attack came three days after grenades were hurled at a 
building  in  Baghdad  housing  offices  of  the   World   Health 
Organization and U.N.  "oil-for-food" program. No casualties were 
reported in that attack.  

The United Nations insisted after the Baghdad attack that it  was 
the responsibility of Iraqi authorities to ensure the security of 
its staff and offices in the capital.  

But  northern  Iraq  has  been  under  the control of rival Iraqi 
Kurdish groups, in defiance of Baghdad, since 1991.  

Falt said Monday's shooting was the second  attack  on  the  U.N. 
humanitarian mission in northern Iraq, where the FAO is in charge 
of food distribution to the Kurds.  

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              "Gunmen attack U.N. office in Baghdad"

CAIRO,  Egypt (October 5,  1997 11:40 a.m.  EDT) -- Gunmen hurled 
grenades  and  fired  bullets  at  a  U.N.   office  in  Baghdad, 
destroying one vehicle and damaging three others,  officials said 
Sunday.  

One attacker was injured and taken  into  custody  by  the  Iraqi 
army,  according  to  a  U.N.   statement.  The  remaining  three 
attackers fled, it said.  

The  Saturday   night   assault   targeted   the   World   Health 
Organization's  headquarters  in Baghdad,  which houses an office 
for U.N. officials monitoring the oil-for-food program.  

No one claimed responsibility.  It was not clear how the captured 
gunman was injured.  

According  to  preliminary  reports,  the  four  men  also lobbed 
grenades and opened fire at the WHO building, the statement said.  

Eric Falt,  spokesman for  the  oil-for-food  program,  told  The 
Associated  Press in Dubai the attack came after office hours and 
only guards were at the building.  

The roof of the carport was  partially  burned,  Falt  said.  One 
four-wheel  drive vehicle was destroyed and three others severely 
damaged, he said.  

U.N.   humanitarian  coordinator  in  Baghdad,   Denis  Halliday, 
condemned the attack, the first ever at a U.N.  building in Iraq, 
the statement said.  

"It is the Iraqi  government's  responsibility  to  protect  U.N. 
personnel  and  property  against  any harm and Mr.  Halliday has 
asked for an urgent meeting at the highest levels with the  Iraqi 
leaders in order to express his concern," said the statement.  

No one claimed responsibility.

Iraq has been under U.N.  sanctions banning the sale of oil,  its 
economic mainstay, since its 1990 invasion of Kuwait.  But a U.N. 
program,  put  in place in December 1996,  allows Iraq to sell $1 
billion of crude every 90 days to buy needed  food  and  medicine 
under close U.N. supervision.  

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      "U.N. worried about biological arms materials in Iraq"
                    By Evelyn Leopold, Reuters 

UNITED NATIONS (October 7, 1997 7:40 p.m.  EDT) - Six years after 
U.N.  arms experts began hunting down Iraq's  dangerous  weapons, 
the  chief  U.N.  arms  inspector  said  Baghdad was imposing new 
restrictions on inspection teams and  concealing  vital  data  on 
biological warfare, according to a report circulated on Tuesday.  

Richard Butler,  head of the U.N.  Special Commission (UNSCOM) in 
charge of ridding Iraq of weapons of mass destruction,  told  the 
Security  Council  Iraq had made progress on data about ballistic 
and chemical weapons programs.  

But he said in his 40-page report that Baghdad failed to "give  a 
remotely credible account" on biological arms.  

He  also gave the council enough ammunition to back up its threat 
of further  sanctions  against  Iraq,  but  diplomats  said  they 
expected a delay before any possible action was taken.  

The  council in June,  after negotiations between Presidents Bill 
Clinton and Boris Yeltsin of Russia at a G-7  summit  in  Denver, 
adopted  a  resolution  expressing  its "firm intention to impose 
additional measures" on Iraqi officials responsible  for  barring 
U.N. inspectors, depending on Butler's report.  

But  the  council  instead  may  lengthen  the time period of its 
threat of new sanctions,  such  as  a  travel  ban  on  top  Iraq 
officials. It will discuss the report on Oct. 16.  

The  report  is  the  first from Butler,  Australia's former U.N. 
ambassador, since he took over the post from Rolf Ekeus of Sweden 
in July.  

Oil traders said the market was expected to remain turbulent as a 
result of the report.  "You can pretty much take a line and  draw 
it  across daily oil price charts,  and find that each time a key 
date for Iraq comes up,  there is a price jolt," said one trader, 
who asked that his name be withheld.  

Butler  said  Iraq had a choice of telling the truth or remaining 
under stringent U.N.  trade sanctions,  imposed when  it  invaded 
Kuwait in August 1990. A clean bill of health from the commission 
is necessary for oil exports to flow freely.  

"The  commission  is  convinced  of  the  need for the council to 
insist that Iraq meet its obligation to fully disclose all of its 
prohibited weapons and associated programs," he said.  

"There is no substitute for this whole truth," he added.  

Butler listed a series of incidents  from  June  to  October,  on 
Iraqi  interference  with inspections and several times mentioned 
Deputy Prime Minister Tareq Aziz as uncooperative.  

"In the period under review,  the commission  has  encountered  a 
pattern  of  Iraqi  blockages  and  evidence  of  removal  and/or 
destruction of documents and material at  sensitive  sites  under 
inspection," he said.  

On biological weapons,  the report said Iraq repeatedly attempted 
to "trivialize" its program,  that began in the early  1970s  and 
"suffered  only  minor  hiccups  over  its  20  year history." At 
present the commission was still  uncertain  how  many  materials 
remained.  

The  commission  two  years  ago  discovered that Iraq filled 191 
bombs,  artillery  shells  and  missiles  with  germs  and  other 
biological agents for possible use in the 1991 Gulf War.  

The  report  said  that  Iraq's latest purported final account of 
this program,  submitted on Sept.  11,  was studied by 15 experts 
from 13 countries. They concluded it was "incomplete and contains 
significant   inaccuracies."  Materials  listed  appeared  to  be 
"vastly understated by Iraq," the report said.  

On ballistic missiles,  the report said some 817 of the 819  long 
range  operational  missiles  Iraq  imported in the period ending 
1988 had been accounted for.  

But it said that accounting of missile  warheads  and  proscribed 
missile  propellants  has  not  yet  been  completed,  while  "no 
verifiable material balance from many critical missile components 
and materials from Iraq's indigenous missile  production  program 
can be established." 

On chemical weapons,  the commission, which described the program 
as one "of enormous scope," said it was "pleased  to  record  the 
significant progress made." 

But  it  said  Iraq  still  needed to account for special missile 
warheads intended for filling with chemical or biological warfare 
agents,  155 mm mustard gas shells and the extent of its  program 
for producing the most toxic chemical nerve agent VX.  

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           "Showdown over Iraq, U.N. policy shaping up"
                 Associated Press, 10/06/97 01:42 

                  
 UNITED NATIONS (AP) - A major showdown over new Iraqi  sanctions 
 is  taking shape in the U.N.  Security Council,  and the outcome 
 could have serious consequences for U.S.  policy not only in the 
 Middle East but with Russia, France and China as well.  
                 
 By Saturday, U.N.  weapons inspectors must submit to the council 
 a report on whether Iraq has been complying with U.N.  orders to 
 allow  the  investigators  access  to sites where Baghdad may be 
 hiding banned weapons.  
               
 Last week,  the team said the  Iraqis  blocked  inspectors  from 
 three  sites  - two in Baghdad and one north of the city.  Chief 
 inspector Richard Butler has demanded an explanation from Iraq's 
 deputy prime minister, Tariq Aziz.  
                
 It was not the first time Iraq  has  prevented  inspectors  from 
 sites.  But  this case is more important than the others because 
 of the potential for trouble with Russia,  China and perhaps the 
 French.  All  three - along with the United States and Britain - 
 are permanent Security Council members with veto powers.  
                 
 The sanctions - in place since Iraq invaded Kuwait in 1990 - are 
 widely unpopular.  The French and Russians are anxious to resume 
 commercial  links  with  Baghdad.  China  is  also  ready  to do 
 business with the Iraqis.  
                 
 Arab countries resent that sanctions are  usually  reserved  for 
 wayward  Arab  regimes  -  such  as  Libya  and  Iraq - when the 
 Americans refuse to join  the  council  at  all  in  criticizing 
 Israel  for  its  building settlements in the West Bank and Gaza 
 Strip.  
                 
 Following a standoff with the Iraqis  last  spring,  the  United 
 States  and  Britain  submitted  a resolution in June asking the 
 council to impose travel  restrictions  on  Iraqi  military  and 
 intelligence officers.  
                 
 The  Russians,  Chinese and French opposed additional sanctions. 
 Russia's U.N. ambassador, Sergey Lavrov, informed his colleagues 
 he would veto the Anglo-American resolution.  
                 
 But President Clinton and Russian President Boris Yeltsin agreed 
 last  spring  to  give  Baghdad  until  the  October  report  to 
 demonstrate   cooperation.   The   two  expressed  their  ``firm 
 intention'' to impose new sanctions  if  Baghdad  continued  its 
 obstructionist ways.  
                 
 If  the U.N.  inspectors submit an unfavorable report this week, 
 it would be up to the Clinton Administration and the British  to 
 decide whether to ask the council to consider new measures.  
                 
 It  would  then  be  up  to the current council president,  Juan 
 Somavia of Chile,  to schedule Security  Council  debate,  which 
 could  delay  a  showdown  for  several days after the report is 
 submitted.  
                 
 That could delay a showdown  for  several  more  days  once  the 
 report has been submitted. That would give more time for the USS 
 Nimitz, a U.S.  aircraft carrier, to reach the Gulf.  
                 
 The  Pentagon,  in  announcing  last  week  that  the Nimitz was 
 heading to the region,  linked the carrier's presence to  recent 
 Iranian  airstrikes  against  opposition  groups  operating from 
 bases in Iraq.  But the carrier could conceivably  be  used  for 
 punitive action against Baghdad.  
                 
 Privately,  Russian  diplomats  at  the United Nations have been 
 urging moderation,  telling reporters that despite lapses,  Iraq 
 has  genuinely  tried  to  comply with U.N.  orders to dismantle 
 banned weapons systems and offer proof to the inspectors.  
                 
 The Russians noted that although the  Iraqis  barred  inspectors 
 from three sites, they allowed them access to seven.  

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            "Turkish jets attack rebel forces in Iraq"

DIYARBAKIR, Turkey (October 7, 1997 1:46 p.m. EDT) - Turkish jets 
launched  attacks  on Kurdistan Workers Party guerrilla positions 
in northern Iraq on Tuesday as clashes between the PKK rebels and 
an Iraqi Kurd faction backed by Turkey spread.  

Turkish military officials said F-16 jets  had  launched  bombing 
raids  on  the  Khwakurk  area  of  northern  Iraq from a base in 
southeast Turkey.  

A Turkish army official in Ankara told Reuters  the  rebel  death 
toll  had  reached  538 in the 3-week-old military incursion into 
the mountainous region.  

The official gave no figure for  Turkish  losses  but  said  four 
soldiers were wounded during the latest clashes in the area.  

Turkish  artillery  helped its Iraqi Kurd allies -- the Kurdistan 
Democratic Party (KDP) -- kill 10 PKK  guerrillas  near  the  Zab 
camp  in  northern  Iraq,  KDP  radio monitored by Anatolian news 
agency said.  

Around 15,000 Turkish troops crossed the border three  weeks  ago 
in  a  push against the PKK,  who use the remote region to launch 
attacks in their fight for self-rule in southeast Turkey.  

The operation has been condemned by Baghdad and neighboring Iran. 
Northern Iraq has been outside Baghdad's control since the end of 
the 1991 Persian Gulf war.  

Gunmen in the region fired on a  convoy  of  five  U.N.  vehicles 
Monday, a U.N. official in Baghdad said Tuesday.  

He said no one was hurt in the incident 19 miles from the Turkish 
border, close to positions held by the PKK.  

"They  were  ambushed  by a group of armed men who fired about 50 
rounds of automatic weapons.  It is possible that  small  caliber 
mortars were used in the attack," Eric Falt, spokesman for Iraq's 
U.N. coordinator, told Reuters.  

More  than 26,000 people have been killed in 13 years of conflict 
between Turkish forces and the PKK, mostly in Turkey.  

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  "Iraq promises retaliate to strike back if Iran attacks again"

BAGHDAD  (October 6,  1997 10:58 a.m.  EDT) - An Iraqi government 
newspaper warned Iran on Monday that Baghdad would  retaliate  to 
any new attacks against Iranian opposition bases in Iraq.  

"Aggression  against  a  free and independent country will not be 
easy and we shall pay (Tehran) back twofold," al-Jumhouriya daily 
said in a commentary.  

Jumhouriya was reacting to remarks  by  Iran's  Foreign  Minister 
Kamal  Kharrazi  that  Tehran  had  the  right  to attack Iranian 
"terrorist" opposition groups in Iraq.  

"This is a right to self-defence," Kharrazi told the London-based 
Arabic newspaper al-Hayat when asked whether  Tehran  planned  to 
renew raids on Iraqi territory.  

"As  long  as  the terrorist groups are committing terrorist acts 
against our territory we have the  right  to  defend  ourselves," 
Kharrazi added in last week's interview conducted in New York.  

"The  remarks  show  exposed hypocrisy and playing with words for 
the service of dubious political ends," Jumhouriya 

"We find in Kharrazi's statement a new challenge to international 
law ...  and it is the duty of the world body (U.N.) to  denounce 
it." 

Iran  has  protested to the United Nations over what it said were 
"terrorist"  cross-border  attacks  from  Iraq   and   said   the 
incursions  prompted  its  air  raids on Iranian Mujahideen Khalq 
rebel bases inside Iraq last week.  

Iran has said the raids were not  intended  against  its  1980-88 
Gulf War foe Iraq.  

"We  are  exerting efforts to open new windows with Iraq.  I have 
met with Iraqi Foreign Minister Mohammed al-Sahaf ...  our  talks 
were frank and we have decided to continue these talks," Kharrazi 
said  of  a  meeting  held  on  the outlines of the U.N.  General 
Assembly meeting last week.  

Jumhouriya said Kharrazi's remarks ran contrary to those he  made 
during  his  meeting  with  Sahaf  in  New  York.  "His statement 
contradicts what he personally told Sahaf that Iran is  ready  to 
open a new political dialogue with Iraq ...  based on respect and 
non-aggression." 

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               "Iran threatens more raids in Iraq"

DUBAI  (October  5,  1997  07:40  a.m.  EDT)  -  Iran  on  Sunday 
threatened to carry out more raids on opposition bases across the 
border  in Iraq,  after an air strike which prompted the U.S.  to 
rush an aircraft carrier back to the Gulf.  

"So long as  terrorist  groups  conduct  operations  against  our 
territory,  it  will  be  our right to defend ourselves," Foreign 
Minister Kamal Kharazi told the London-based Arabic newspaper Al-
Hayat.  

"We have said many times we can not  tolerate  terrorist  attacks 
from  across  the border on our villages and pipelines," he said. 
"That is why we decided to carry out a raid  on  their  camps  to 
defend ourselves, which is our right." 

The  United  States  said  Friday  it  had dispatched an aircraft 
carrier battle group to the Gulf in the wake of Iran's  incursion 
into  a  "no-fly zone" in southern Iraq to carry out the raids on 
the opposition People's Mujahedeen.  

The accelerated deployment of the  USS  Nimitz  and  accompanying 
warships   "is   related   to   our  ability  to  carry  out  the 
responsibility given to us by the international community," White 
House spokesman Michael McCurry said.  

The United States has warned that the incursions into the  no-fly 
zone could put Iranian pilots at risk.  

The Nimitz,  skipping a port call in Singapore,  was now expected 
to arrive in six days, rather than mid-October as scheduled, U.S. 
defense department spokesman Kenneth Bacon said Friday.  

"It's going over there to show we're serious about enforcing  the 
no-fly zone," he said.  

Iraq has protested over the raids carried out on September 29 and 
called  for  a ban on Iraqi flights in the south and north of the 
country to be lifted to allow it to defend itself.  

The "no-fly zones" for Iraqi aircraft were imposed by the  United 
States and its allies following the 1991 Gulf War.  

The Mujahedeen said Iran's warplanes struck two of its bases near 
the border, southeast and northeast of the capital. It was Iran's 
first  air strike since 1993 but the group has been the target of 
several attacks by land.  

The raid came three days after a  meeting  in  New  York  between 
Iraqi  Foreign  Minister  Mohammad  Said al-Sahhaf and Kharazi on 
normalizing relations between the two countries,  which fought  a 
1980-1988 war.  

Kharazi, in the interview with Al-Hayat, ruled out a halt to such 
dialogue. "We must try to open doors," he said, while noting that 
the  issue  of  the  Iranian  opposition  based  in  Iraq  was an 
obstacle.  

He also played down the prospects of  a  three-country  alliance, 
between Iraq, Iran and Syria, its main Arab ally.  "I don't think 
such an axis is possible  at  the  moment  ...  There  are  still 
outstanding questions with Iraq," he said.  

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               "Iranian war games to coincide with 
                 Nimitz arrival in Persian Gulf"

                 Associated Press, 10/07/97 14:47 

TEHRAN,  Iran  (AP)  -  As the USS Nimitz sped Tuesday toward the 
Persian Gulf to keep Iran  and  Iraq  in  check,  Iran's  defense 
minister  announced  new naval maneuvers this week involving more 
than 50 warships.  
                  
Ali Shamkhani said the 10-day exercises would begin Saturday.  

On Friday, the aircraft carrier USS Nimitz was ordered to head to 
the region two weeks ahead of schedule in response  to  Sept.  29 
raids by Iranian jets on two Iraqi bases of an Iranian opposition 
group, the Mujahedeen Khalq.  
                  
The  Clinton  administration told Iran its raids violated a U.S.-
enforced ``no-fly'' zone  in  southern  Iraq  and  could  trigger 
retaliation. It also warned Iraq not to attempt other flights.  

The Nimitz is expected to arrive in the region by mid-October. 
                  
Shamkhani  said  the  exercises would be carried out in a 15,000-
square-mile area by Islamic Revolution Guard Corps,  Iran's  main 
fighting force.  

Three  Russian  submarines  in service with the Iranian navy also 
would take part in the maneuvers, along with scores of warplanes, 
helicopters and machine-gun mounted speedboats.  

Iran condemns the presence of more than 20,000 U.S. forces in the 
Persian Gulf, which it considers its own sphere of influence.  
                  
The United States maintains about 20 combat and support ships  in 
the Persian Gulf at all times. The U.S. Navy's 5th Fleet is based 
in Bahrain.  
                  
Also  Tuesday,  the  chiefs  of staff of the six Gulf Cooperation 
Council nations announced that they would hold  joint  air  force 
exercises.  They  did not give a date for the maneuvers.  The GCC 
groups Saudi Arabia, Kuwait, Qatar, Bahrain,  Oman and the United 
Arab Emirates.  

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               Global Intelligence Update Red Alert 
                         October 7, 1997

              "U.S. in Quandary Over Iranian Moves"

On  the surface,  tensions appear to be rising between the United 
States and Iran.  Following the Iranian air raids on anti-Iranian 
rebel bases in Iraq,  the United States  announced  that  it  was 
moving  the  carrier Nimitz from Singapore to the Persian Gulf to 
block further Iranian raids.  The Iranians  have  announced  that 
they  are  going  to  carry  out  naval maneuvers in the northern 
Persian Gulf,  code named Victory 8,  which  will  include  three 
Russian-supplied  Kilo  Class  submarines.  According  to Kurdish 
sources in London,  Iran has begun massing military forces  along 
the  Iraqi  border,  moving  armored  and  artillery units to the 
border area  between  Qala  Diza,  Hajj  Umran  and  Hezhen.  So, 
tensions between the U.S. and Iran appear to be ratcheting upward 
as both sides bring military forces to bear.  As usual,  however, 
things are not altogether as they might appear.  

The Beirut Times reported that  Iranian  Foreign  Minister  Kamal 
Kharrazi  announced  that Iran is ready to re-establish relations 
with the United States if the United States were  to  demonstrate 
good-will  toward Iran.  Noting that the United States had issued 
a call for dialogue with Iran,  Kharrazi stated that he  did  not 
feel that the U.S.  was sincere,  but made it clear that Iran was 
ready for some  sort  of  reconciliation.  Kharrazi  defined  the 
required  American  sincerity with sparkling clarity.  Iran wants 
the release of frozen assets,  the removal of sanctions,  and  an 
end  to anti-Iranian propaganda.  Notably absent from the list is 
any mention of U.S.  support for Israel.  Kharrazi went on to say 
that,  "If these principles are met,  there will be no reason why 
we  should  continue  to  have this type of relationship with the 
U.S..  While these  would  not  be  difficult  for  the  U.S.  to 
implement,  he made no mention of American requirements that Iran 
stop support for terrorists.  However,  by dropping the demand on 
Israel, he intentionally left room for discussion.  

At  the same time,  Tehran was holding its options open.  Unnamed 
high level Iranian sources  were  reported  by  the  London-based 
newspaper Al-Sharq al-Awsat as saying that last week's raid, "was 
an  exception  and  should  not  be  seen as fixed Iranian policy 
towards Iraq." In addition,  the newspaper  reported  that  Iraqi 
Health  Minister  Umid  Midhat  would  travel  to Tehran over the 
weekend to participate in a UN meeting being held there, and that 
the Iraqis regard this as a positive sign of Iranian flexibility.  
Of course,  Iraq threatened  retaliation  if  Iran  continued  to 
attack Iraqi territory.  

Everyone  is  trying to make sense of the situation.  The Mideast 
Mirror has suggested the following scenario.  Turkey  is  looking 
to  occupy  northern  Iraq  as  far  south  as Mosul with its oil 
fields.  Iran wishes to take Basra and the Shatt al-Arab, heavily 
fought over during the Iran-Iraq war.  All of this is prelude  to 
the  main  event.  In  addition,  according  to  the Mirror,  the 
Syrians are afraid that Turkish ambitions will extend as  far  as 
northeastern Syria,  where Kurds are also active.  In short,  the 
fear is that  Turkey  and  Iran  have  reached  an  agreement  to 
dismember Iraq in a massive, anti-Arab strike.  

From the American point of view, there is good news and bad news.  
The  good  news  is that the dreaded Damascus-Baghdad-Tehran axis 
seems to have disintegrated.  The bad news is that there are some 
serious signs that Tehran is interested in reversing the  outcome 
of  the  Iran-Iraq  war.  This  is  certainly  not  in  the  U.S. 
interest.  The United States wants to  preserve  the  balance  of 
power  between  Iran  and  Iraq,   preventing  either  side  from 
dominating the Persian Gulf.  Iran appears  to  be  extending  an 
olive  branch  to  the  United  States,  but the price clearly is 
permitting Iran a free hand to deal with Iraq.  At the same time, 
in making conciliatory gestures toward Iraq, Iran is signaling to 
the United States not to take Iran for granted, showing that Iran 
has not locked itself into  an  anti-Iraqi  stance  and  that  it 
retains both flexibility and options.  

Since  intervention on behalf of Baghdad is unthinkable and since 
Turkey, a stalwart American ally, is deeply involved in this, the 
United States is in a deep quandary has to how to proceed.  If it 
responds to Iran's offer of detente, it opens the door to Iranian 
ambitions.  If it rejects the offer,  it risks driving  Iran  and 
Iraq closer together.  

The  Nimitz  will  be  on  station  shortly.  We  wonder what its 
mission will be.  

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