Created: 10/18/1983

OCR scan of the original document, errors are possible

National Intelligence Daily (Cable)



Ir.q: Cuis In lia,

IRAQ: Cuts In Military Pay

Baghdad ended combat pay

and allowances lor military pef Sonne:'asctober lo help easeslluatlon. To save cash. Ihe regime had alreadyother benefits tor military personnel and dependents.middle ot last month. Baghdad also hasillion In

he termination ot combat pay alrr-:st cerlainly will lower morale turther and perhaps cause somen tho desertion rote. Baghdad, however, probably Is counting on tbe professionalism of Its officer corps and fear ot punishment loa|or Increase In desertions. The gold sales indicate that foreign enchenge reserves are nearly depleted^

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