GULF WATCH: Day 65 : A Daily Briefing Paper On Developments In The Crisis

Diplomatic Front:

In a speech before the U.N. General Assembly, Iraq charged that America’s desire to control world oil supplies has pushed the world “to the brink of a devastating war.” The address was delivered by Iraq’s deputy envoy, Sabah Talat Kadrat.

Japanese Prime Minister Toshiki Kaifu promised to give Turkey $300 million in financial assistance as part of a $2-billion aid package for those nations hardest hit by the international sanctions against Iraq. Military Front:

Iraq “would not last terribly long” in the event of an all-out shooting war in the Persian Gulf, but it probably would resort to using chemical weapons before it was vanquished, according to analysts at the International Institute for Strategic Studies in London.

U.S. military forces have begun extensive training exercises in Saudi Arabia to simulate a tank battle of unprecedented scope. The exercises involve armored Marine units based near the Kuwaiti border. Terrorism Front:

U.S. officials said America and its allies are facing the broadest terrorism threat ever from Iraqi-sponsored agents and sympathetic terrorist groups. Analysts have detected unprecedented movement of known terrorists on three continents--Europe, Africa and Asia--and are bracing for a wave of terrorist attacks. Hostage Front:

About 300 Americans and foreign-born dependents in Kuwait have signed up for next week’s U.S.-chartered evacuation flight.

Baghdad has asked foreign businesses still operating in Iraq or Kuwait to furnish lists of all employees over the age of 55, according to British officials. It was not known why Iraq wanted the names or whether companies would comply.

Four German citizens who had been held as “human shields” in Iraq since the Aug. 2 invasion of Kuwait arrived in Jordan after being released by Iraqi President Saddam Hussein as a gesture of goodwill and in honor of Germany’s unification. Flight of Foreigners:

Refugees who fled to Jordan from Iraq: 540,000-plus

Those who entered Syria from Iraq: 70,000

Refugees who entered Turkey from Iraq: 40,000

Refugees who fled to Iran from Iraq: 20,000-plus

Those who fled to gulf states from Kuwait: 240,000-plus

Total refugees since Aug. 2: 910,000-plus