NATIONAL INTELLIGENCE DAILY

Created: 3/18/1980

OCR scan of the original document, errors are possible

PORTUGAL-IRAQi Uranium Sale

Portugal reportedly has agreed to sellone of uranium ore concentrate under internationalin return for an increaseillion tons in Lisbon's oil allotment. The deal is the latesteries of cases in which Iraq has used oil leverage to secure nuclear assistance or supplies: Portugal already receivesercent of its oil from Iraq.

Iraq's purpose in acquiring uranium is unclear. It cannot be usud directly in Baghdad's only operatingreactor, nor can it be used without enrichment in any reactor that Iraq currently plans to construct. Iraq may be acquiring uranium against the eventuality of tighter supplier controls, especiallyumber of nuclear suppliers are becoming suspicious of Daghdad's long-term intentions. The Iraqis also may intend to use some of it for training purposes in the sophisticated fuel fabrication facility that Italyuilding for them.

Original document.

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