GULF WATCH: Day 46

Diplomatic Front:

In a videotaped address broadcast over Iraqi TV, President Bush said he has “no quarrel with the people of Iraq” but warned that “Iraq stands isolated and alone.”

“Saddam Hussein tells you that this crisis is a struggle between Iraq and America,” Bush said. “In fact, it is Iraq against the world. . . . Let me say clearly, there is no way Iraq can win.” The talk was followed by an Iraqi commentary in which Bush was called a liar who wants to be “dictator of the whole world.”

In New York, the U.N. Security Council adopted another resolution condemning Iraqi actions, specifically the raids on French, Canadian and Belgian diplomatic compounds in Kuwait on Friday. The resolution was passed unanimously, 15-0.

Saudi Arabia’s foreign minister arrived in the Soviet Union. The official Tass news agency said he will sign a treaty re-establishing diplomatic ties broken more than 50 years ago.

In another sign of rapprochement, a senior Iranian delegation arrived in Iraq, apparently to discuss prisoner-of-war exchanges, border matters and the reopening of embassies.

Trade Front:

Israel displayed alarm at the proposal to sell Saudi Arabia $20-billion worth of U.S. weapons. Israel views the purchase as a security threat, and analysts said the deal could spark a MiddleEast arms race. Officials said Defense Minister Moshe Arens will raise the matter in talks today with his U.S. counterpart, Dick Cheney.

The World Bank announced plans to increase its lending to the developing world over the next year and is exploring ways of helping nations hurt by the Persian Gulf crisis.

One just-announced effect of the U.N. blockade: Revenues from the Suez Canal will drop 10% this year, cutting into one of Egypt’s main sources of badly needed foreign currency.

Hostage Front:

Kuwaitis continued to flood into Saudi Arabia. An estimated 5,000 crossed the border over the weekend after Iraq opened it for the first time in a month.

Iraqi soldiers confiscated all identity documents, including car registration forms, refugees said, apparently to make it difficult for anyone to return.

Seventy-three more Americans fleeing the conflict arrived at the Baltimore-Washington Airport.

And India continued an evacuation effort thought to be the largest ever. More than 150,000 Indian citizens are trapped in and near Iraq and Kuwait. A 50-bus convoy will begin running this week to evacuate about 2,600 Indians daily. Several hundred more will be taken home aboard a ship now headed for Iraq with 10,000 tons of food and medicine for Indian refugees there.

Crisis Indicators:

* U.S. troops on the ground: 100,000-plus

* U.S. sailors aboard ships in region: 35,000

* U.S. warships in region: 50-plus

* Iraqi troops in/near Kuwait: 265,000

* U.S. reservists to be mobilized: up to 50,103

* High temperature in Riyadh, Saudi Arabia: 102