NATIONAL INTELLIGENCE DAILY

Created: 10/22/1983

OCR scan of the original document, errors are possible

SAUDI ARADfA-IRAO: Rtnnidn Pipeline

filyadh may oo* to Baghdad'* presburo tor occoss fo an oil plpollno across Saudi Arabia bociiuso ot troa's mounting financial diitKuiurrs ana mo poor prospects to' reopening ino ptpoiino across Syria soon. | j

1 Foreign Minuter Saud

tnm week lhal negotiations between the

Gulf Cooporntlon Council and Oomascuaeopen thohod "totallyraq la dependipelineloarrels per

Snud enya Iraq and Saudi Arabia are now working to link Iraq to tho Saudi pipeline thoi extends to Iho Rod Son. Ho estimated conairuclion would lake obout

Commtnl: Tho question of financing tha nawwoviu bo considerably cfionpor thaneparate line from Iraq to Ihe Redhas to bo addressed. The Saudis hove never been enthusiastic supporters ot an Iraqi pipeline crossing their territory. Thny wllhdrow flnnnclpl nsalatnnco forino proposedtfoctlvety killing that project.

Iraq hoa to Increase oil exoorti substantially if It is lo solve its economic dllomma. The plpollno, however, would nol provide Immediate relief. If other financial old Is nol fcrthcomliig. Baghdad may be compeiiod lo stop up Iho wor with iron In order lo bring Tehran to tho negotiating labia or secure tho support of Western powers loeace. Q

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