Wednesday, September 26, 1990

Sec. Baker holds 4-hour meeting with Soviet F.M. Shevardnadze in New York on Gulf situation; agree on need to increase pressure on Iraq. Baker begins meeting by praising Shevardnadze's UN speech [NYT, WP 9/27].

Sec. Baker also meets with Israeli F.M. Levy [JPD 9/26 in FBIS 9/26]; Levy says Israel will not move forward with Israeli-Palestinian peace process until after Gulf crisis is settled [JPI 10/6].

USSR and EC issue joint statement in New York on resolved conflicts in Middle East  [NYT 9/27].

In 1st phase of planned over $20 billion arms sale to Saudi Arabia, Pres. Bush decides to include the most sophisticated M- 1 tanks and other weapons worth $7.5 billion as immediate response to Iraqi threat [NYT, WP 9/27; LAT 9/28].

With spot-market oil prices topping $40 a barrel, Pres. Bush announces plans to sell 5 million barrels of oil from U.S. Strategic Petroleum Reserve to curb "intensive and unwarranted speculation in oil futures" [LAT, NYT, WP 9/27; CSM 9/28].

25 Jordanian trucks with 400 tons of Palestinian-financed food parade through Baghdad as Iraq tries to demonstrate ineffectiveness of embargo (LAT 9/27].

PLF leader Abul Abbas warns of "war without limits" if Iraq is attacked; threatens to strike against U.S. and W. Europe [LAT 9/27].

Diplomatic note from Iraq to embassies in Baghdad threatens death to anyone caught hiding Western civilians; Sec. Baker calls the note "repugnant" [WP, WT 9/27].

Palestinians in O.T. observe general strike in support of Iraq [WT, CSM 9/27; FJ 10/1]; while leading Palestinians, including Faisal Husayni, meet with Israeli members of Peace Now group [FJ 10/1; MET 10/9].

Palestinian economic experts estimate O.T. losses from Gulf crisis to be about $405 million [QDS 9/26 in FBIS 9/27].