NATIONAL INTELLIGENCE DAILY

Created: 7/17/1981

OCR scan of the original document, errors are possible

National Intelligence Daily (Cable)

SAUDIRAQ] Offer To Help Rebuild Reactor

The Saudi announceaent yesterday that Riyadh would be willing to underwrite the coet of rebuilding the Iraqi reactor deatroyed by Israel may be littleeature to ahow solidarity with Iraq. Baghdad recently criticized Saudi Arabia for not being more supportive. The Saudis have been concerned about the prospect of Iraqi nuclear weapons and say have sought privatefro* tha French on safeguards.

There is no indication of Baghdad's reaction to the Saudi offer. Tha Iraqis can easily afford to rebuild the reactor themselves as the cost is relatively low. They would not accept Saudi financing if it gavahance to ir.pose conditions on the use of tha reaceor. In any event, tha Israelis will get propaganda mileage out of the offer, using it to portray the Saudis aa col-laboratora in producing an "Arab bomb.1'

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