MIDEAST UPDATE

Lloyd’s of London slashed insurance rates for marine cargo traveling to many Middle East locations, reflecting optimism that commercial shipping won’t be damaged in the Gulf War.

In an effort to get the airlines back to carrying packages for the U.S. Postal Service, the Air Transport Assn. has drafted a letter to Postmaster General Anthony Frank outlining a screening system to be used by postal workers on mail bound for passenger aircraft.

Already pledged to pay $48 billion toward the costs of the war, the Saudi government is seeking $3 billion in international loans, its first overseas borrowing in 30 years, diplomats said. The Saudis have asked the Morgan Guaranty Trust Co. to lead a lending consortium.