MIDDLE EAST AFRICA BRIEF OCPAS MEAB 83-142 FOR 22 JULY

Created: 7/22/1983

OCR scan of the original document, errors are possible

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MIDDLE EAST AFRICA BRIEF OCPAS2 FORULY

FRO*; PAS.

CONTENTS

1.

2.

3.

RAQ: MORE AUSTERITY MEASURES 5.

Fcfc BO-EASE L'ATE: Al/H5

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UL 83

9

RAQ: MORE AUSTERITY MEASURES

BAGHDAD IS RAISING TAXES ANO OEBANDING ADDITIONAL SACRIFICES FROM AM ALREADY WAR-HEART POPULATION AS IT STRUGGLES TO FINANCE THE CONFLICT AND MET MINIMUM DOMESTIC NEEDS. q

IT ISAMPAIGN TO COLLECT *'VOLUNTARY" CCfcTfi'SJTIDAE OFROM IRAOI WOMEN IN ORDER TO DEMONSTRATE PUBLIC SUPPORT FOR THE MAR EFFORT. IN ADDITION. THE REGIME HAS CUT EDUCATIONAL STIPENDS AND ELEMENTARY SCHOOL FOOD PROGRAMS.

TO REDUCE OUTLAYS OF FOREIGN EXCHANGE. BAGHDAD HAS DELAYED THE ISSUANCE OF IMPORT LICENSES FOR MANY HQNESSENT1AI CONSUMER GOODS. IT ALSO HAS SLASHED IMPORTS OF RAM MATERIALS BY TWO-TllROS FCR PRIVATE SECTOR INDUSTRIES, WHICH PRODUCE DOMESTIC CONSUMER GOODS. [

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NCREASED INCOME TAXES AND GOLD CONTRIBUTIONS WILL ADD TO POPULAR DISCONTENT WITHOUT COMING CLOSE TO MEETING IRAQ'S FOREIGN EXCHANGE NEEDS. OIL EARNINGS THIS YEAR WILL REACH ONLYILLION, AS COMPARED WITH ABOUTILL ION LAST YEARILLIONESULT. IRAQ IS LIKELY TO BE LEFTURRENT ACCOUNT DEFICIT5 BILLION. EVEN AFTER SUBSTANTIAL CUTS IN IMPORTS.

//DIRECT AID BY PERSIAN GULF STATES AND OIL SALES BY THEMBEHALF-PROVIDING4 BILLION IN ADDITIONAL REVENUENOT CLOSE THE GAP. WITH FOREIGN EXCHANGE RESERVES OF LESSBILLION. IRAQ WILL HAVE TO DEFER AT LEASTILLION INTHIS

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