MIDDLE EAST / AFRICA BRIEF FOR 28 MARCH 1986.

Created: 3/28/1986

OCR scan of the original document, errors are possible

SUBJECT: MIDDLE EAST/AFRICA

FROM: PAS CONTENTS

ISRAEL-LEBANON-PLO: INCREASED BORDER VIOLENCE

IRAQ: NEW AUSTERITY MEASURES

INDIA: MILITANTS ESCALATING VIOLENCE IN PUNJAB

IN BRIEFS

1. ISRAEL-LEBANON-PLO: INCREASED BORDER VIOLENCE

Cate ,

Release

SECRET

AR

ESTERDAY THE FIRST SINCE

//ISRAELI AIRCRAFT HIT PLO TARGETS NEAROCKET ATTACK ON NORTHERN ISRAEL. TO CAUSE CIVILIAN

//PRIME MINISTER*PERES CLAIMED ON ISRAELI RADIO THAT THE AIRSTRIKES WERE IN RETALIATION FOR AN ATTACK ON QIRYAT SHEMONA Tl INJURED FOURCHILDRENEACHER YESTERDAY "

RETALIATION RESPONSE.ALESTINIAN FIC LEADERS. HOWEVE TO EVEN GREATER NO REALISTIC AL CERTAINLY WILL WAS RESPONSIBLE

//PERES PLACATE

FOR THI

THE AIRSTRIKEIRECT ETER PRESSURETRONGER ICY OF PUNISHING SHIA AND NORTHERN SETTLEMENTS. MANY THAT THIS APPROACH MAY LEAO UHELESS. THE ISRAELIS SEE REPRISAL ANO ALMOST

WHOEVER. THEY DETERMINE

PUNISH ATTACK//

2. IRAQ: NEW AUSTEFNTY MEASURES

//IRAQ IS TRYING TO COPE WITH LOWER OIL REVENUES AND WAI IPENSES BY CUTTING GOVERNMENT SPENDING EVEN FURTHER '

[IMPORTS ANO DEVELOPMENT Will BE SCALED BACK.

WEI IRAQI LEADERS.

AUSTERITY

MADE LAST WEEKIGHLY PJBLlCIZED MEETING CHAIREO BY PRESIOENT SADDAM HUSAYN//.

PARTICIPATION IN ECONOMIC POLICY PUBLICITY GIVEN THE MEETING

l//SADDAM'S DIRECT OVER THE PAST FEW MONTHS ANO THE

T0IRAQIS FOR UNPOPULAR SPENDING CUTS. BAGHDAD IS LIKELY TO REDUCE WAGES .AND BENEFITS FOR GOVERNMENT

SEC

^E7

AR 66

IN PUNJAB

EMPLOYEES ANO TO CUT SUBSIDIES FOR FOOD ANO CONSUMER GOODS. THE NEW RESTRICTIONS ON REMITTANCES. COMBINED WITH LOWER DEVELOPMENT SPENDING, ARE LIKELY TO CAUSE MORE FOREIGN WORKERS--MOST OF THEM EGYPTIANSTO LEAVE. THEIR ABSENCE BAY DISRUPT BASIC SERVICES//.

3. INDIA: MILITANTS ESCALATING VIOLENCE

//SIKH EXTTTtTHTsTS ARE INCREASING ATTACKS ANO DEMONSTRATIONS AGAINST .BOTH HINDUS ANO MODERATE SIKHS. YESTERDAY SHOTS ANO FIRFBOMBS FORCEO PUNJAB'S SIKH CHIEF MINISTER BARNALA OFF THE STAGEELIGIOUS FESTIVAL SPONSORED BY HI9 MODERATE AKALI DAL PARTY: AKALI DAL OFFICES IN AMRITSAR WERE BURNED. LAST WEEK, MILITANTS ATTRACTED ENOUGH MODERATE SIKH SUPP0RT--BY CLAIMING HINDUS HAD DESTROYED SIKH RELIGIOUS SHRINES--TO CUT OFF FOOD SHIPMENTSPRIMARILY HINDU CITY OF BATALA FOR FIVEj_

'/THE MILITANTS PROBABLY WILL GAIN AODIIIONALMODERATE SIKHS IF THEIR TACTICSARSH RESPONSEOR NATIONAL AUTHORITIES OR FROM HINDU CHAUVINISTS.ALSO HOPE TO GAIN SUPPORT BY DISCREDITING THERELIGIOUS AND POLITICAL LEADERSHIP AND BY CASTING NEW DELHIDEFENDER OF THE HINDU FAITH. PRIME MINISTER GANDHI WILL TRYPLAYING INTO THE MILITANTS' HANDS AND EARLY NEXT MONTHTO GIVE SIKH-DOMINATED PUNJAB STATE EXCLUSIVE CONTROLTHE CAPITAL IT NOW SHARES WITHOVEREINFORCE MQDFRATF SIKHS' SUPPORT FOR CHIEF MINISTER BARNALANEW DELHI//.

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