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* * * * U N C L A S S I F I E D * * * * * 
		
1990
27 Jul (Contd) (U) $21 per barrel, and raising the pro-
			duction ceiling.
		
27/28 July	(U) united States intelligence warned the
			Bush administration that Iraq may invade
			Kuwait.

29 July		(u) Iraq activated its air defense radars--a
			sign of impending battle.

1 August		(U) Fourteen F-lllEs from the 2Oth Tactical
			Fighter Wing, RAF Upper Heyford, United
			Kingdom, began weapons training at Incirlik
			AB, Turkey, and remained in support of what
			later was designated Operation Desert Shield.

2 August		(U) "With a force five times the size of
			Kuwait's and reputed to be the world's fourth
			largest army, Iraq invaded Kuwait in the early
			morning hours, seizing the capital in only a
			few hours.
		
			(U) President George Bush called the invasion
			"naked aggression" and ordered U.S. Navy ships
			to the region.
			
			(U) Kuwait's ambassador in Washington DC,
			asked the U.S. to "liberate his country."
			
3 August		(U) The united Nations (UN) Security Council
			unanimously denounced the invasion and
			demanded the immediate withdrawal of Iraqi
			forces.

			(U) President Bush signed an order freezing
			all Iraqi assets in the U.S.
	
		 	(U) Iraqi forces progressed to within a few
			miles of the Saudi Arabian border, heightening
			concern that the invasion would not stop at
			Kuwait. However, Saddam Hussein said he would
			withdraw his forces from Kuwait on August.

			(U) 011 prices jumped overnight from $20.40
			to $23.62 a barrel.

3 August 		(U) In an unprecedented display of support
			for Western policy, Soviet Foreign Minister
			Eduard Shevardnadze issued a joint statement
		
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