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File: 082696_d50028_165.txt
Page: 165
Total Pages: 274

Date            International              U.S. PoliticaliDiplomatic            Military

Aug 30    U.N. Secretary General         Costs of maintaining           Pentagon directs cuts in
          arrives in Jordan for          increased troop levels in the  spending worldwide to help
          mediation effort with Iraqi    Mid-East may kill              pay for Persian Gulf military
          Foreign Minister.              Congressional plans for a      operations.
          Iraq continues to bar          $12-$lS billion cut of
          departure of foreign women     President Bush's defense
          and children from Iraq         budget.
          despite President Hussein's    President, although concerned
          announcement that they were    about American hostages,
          free to leave.                 says hostage issue will not
                                         shape U.S. policy.
                                         President sees no effective
                                         opposition to Saddarn Hussein
                                         in Iraq but would not be
                                         unhappy if the people remove
                                         their leader.

Aug 31    Japan pledges $ 1 billion for
          military buildup agalust Iraq.
          Meeting with Iraqi Foreign
          Minister in Jordan, U.N.
          Secretary General states that
          Iraq would release all foreign
          hostages if U.N. provided
          guaantees that western
          military forces would not
          attack Iraq.
          Arab League issues new
          condemnation of Iraq's
          invasion of Kuwait and Libya
          agrees to honor U.N.
          sanctions.

Sep 2                                    The first American hostages
                                         are allowed to leave Iraq.


                                               3-10


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