Created: 12/16/1980

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Mounting oaaualtiaa and aeonoatia dialooatione art producing an atntoaphar* of mataiae in Iraq.

To minimize the iapact of the war on civlliane, Baghdad's strategy has been toarge supply of consumer goods, reopen schools, resume work by foreign contractors, and reactivate building projects. Recently, however, thia strategy has been disrupted.

The government was forced on Saturday toas-rationing system for private automobiles. Baghdad also suffersour outs in electricityIranian air attacks have damaged power plantsi several plant* eithernot functioning or areat well below normal levels. Shortages of natural gas also apparently have developed in several major cities.

decinung guiaie is arrncting tne unitary ai yarn

Iraqi troops occupy an essentially static front, feeing cold and wet winter weather. /


Although the regime probably does not nowerious domestic threat, problems are likely to increase pressures on Baghdad toay to end the war.

i Oh Saturday, Deputy Prime Minister Tariq

Aziz criticised Iran for rejecting all mediation offers.

Military Developments

Bad weather has hampered Iranian and Iraqi


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