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^Original document.