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GULF WATCH: Day 157 : A daily briefing paper on developments in the crisis : Diplomatic Front:

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In a nationwide radio address, President Bush said Secretary of State James A. Baker III will deliver a blunt message to Iraqi Foreign Minister Tarik Aziz when the two meet in Geneva on Wednesday: “Withdraw from Kuwait unconditionally and immediately or face the terrible consequences.” Bush said there would be no “secret diplomacy” conducted during the meeting.

Bush met for three hours at Camp David with U.N. Secretary General Javier Perez de Cuellar but emerged with no new peace initiatives.

Baghdad declined an invitation from the European Community for Aziz to meet with EC representatives on Thursday. The offer was declined after an EC leader ruled out a linkage of Iraq’s pullout from Kuwait and resolution of the Palestinian issue.

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Economic Front:

International sanctions are costing Iraq an estimated $2.5 billion a month, and it has canceled several major industrial, water and energy-related projects, according to a study by the Gulf Cooperation Council, a coalition of six Persian Gulf nations.

The Sea Blockade:

* Ship interceptions: 6,221

* Ships boarded: 749

* Ships diverted: 32

* Warning shots fired: 11

* Participating countries: 17

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