GULF WATCH: Day 127 : A Daily Briefing Paper On Developments In The Crisis

Hostage Front:

Saddam Hussein told Iraq’s Parliament to free all foreign hostages “with our apologies” as a response to “positive changes” in the Persian Gulf crisis. The “guests” should be released because the need to deter an attack has diminished, and Iraqi troops have had time to prepare for battle, Hussein said.

The State Department said it is urgently studying how to get Americans out with maximum speed and efficiency. Military Front:

Iraq has moved an additional 30,000 troops into Kuwait and southern Iraq, and 10,000 U.S. reinforcements have arrived in the gulf, the Pentagon said.

Pentagon spokesman Bob Hall said the Iraqi buildup seemed to indicate that Iraq does not intend to leave Kuwait.

In Brussels, Defense Secretary Dick Cheney pressed NATO allies to send more troops and arms in support of the buildup against Iraq. He welcomed air defense, artillery and other units, along with transport help, medical supplies and ammunition. Trade Indicators:

Crude oil (Jan. spot price per barrel): $26.40, down 89 cents.

Home heating oil (Jan. spot price per gallon): $0.797, down

1.43 cents.

Dow Jones industrial index: 2,602.48, down 7.92.

Gold (per ounce): $371, down $1.75.