Created: 10/22/1983

OCR scan of the original document, errors are possible


National Intelligence Daily (Cable)





SAUDI ARABIA IRAQ; flenswsd Interact In Pipeline

Riyadh may bow to Saoftoatf's pressure tor access to an oil pipeuno across SauOi Arabia because ol Iraq's mounting financial attrcwVas and the pooreopening lha prpaliaeia soon.

uoopsramvi leuncu and Damascus to reopen the Iraqi-Syrian pipeline had "totallyran Is dependentlpeUna through Turkey toarrels per day.

//Saud says Iraq andbla aro now working to link iraq to tne Saudi ppftlne that extends lo the Red Sea. He eitimsteO construction would taxe aboutonthlf-

Comment: The quesfon of financing the newwojld be considerably cheaper thaneparate line from Iraq to tha Rad Sss-atia has to De addreesad. ins Saudis nave never been enthusiastic supporters of an Iraqi pipeline cross'ng their territory. They withdrew financial assistanceine prop06edffectively killing that project. | ]

Iraq haa to Increase oil exports substantially Ifo solve Its eoonomtc dilemma. The pipeline, however, would net provide immediate relief If other financial eld Is not forthcoming, Baghdad may be compelled to step up lha war with Iran In order to bring Tehran to tha negotiating table or secure the support of Western powers toeace] |

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